Objective To explore the establishment and improvement of modern hospital management system,and promote the high-quality development of hospitals.Methods To explore the role of performance management in modern hospital management by analyzing the performance appraisal indicators of national tertiary public hospitals,reorganizing the structure of hospital evaluation system,and implementing fine management.Results From 2020 to 2021,the total revenue of the hospital increased by 7%,the number of outpatient and emergency visits increased by 9.4%,the number of discharges increased by 18.1%,the number of surgical cases increased by 17.5%,the average outpatient expenditure decreased by 11.3%,the average hospitalization expenditure decreased by 11.5%,and the average welfare of employees increased by 8%.Conclusion The implementation of fine performance management in the hospital is of great significance to mobilize the enthusiasm of employees and improve the management level of the hospital.