Public hospitals are a complicated system. As a result, the reform of its supervision system involves adjusting and balancing the right and responsibility in every interested party. Thus it is of great urgency to establish a multilaterally participated supervision system of public hospitals. However, researches on this supervision system start quite recently, especially from the views of the medical industry association. Therefore by analyzing the motivities, difficulties and other deeper factors that exist in the participation of the medical industry association in supervising, this paper tries to put forward a theoretical basis and policy proposals in hopes of perfecting the supervision system of public hospitals