RESUMEN
To analyze the relationship between hospital non-price competition behavior and market structure, analyze the relationship between hospital market construction and health care costs gtowth. Methods:Using cross-province data(SCP) theory to establish the regression function of health cost expenditure, hospital market concentration ratio and the occupancy of public hospital market, process the empirical analysis based on the two-factor effectiveness model of panel data. Results: There is no medical arms race in hospital business under the current market concentration. Conclusion: The reinforcement of market competition played a more important role in the improvement of operational efficiency rather than the differences in the nature of property rights and the profit of hospitals.