Abstract: At the insistence of public nature, Nanshan Hospital in the City of Shenzhen establishes a council mode of corporate governance structure and achieves a separation of decision, execution, and supervision powers, which help Nanshan Hospital to solve the principal-agent problem caused by the separation of supervision from operation of public hospital and also acquire better hospital efficiency and social benefits. In order to promote the practice of corporate governance structure of public hospitals, we should enhance the representativeness and professionalism of council members, increase the autonomy of council governance, implement a new performance management model, and build a good environment for corporate governance.