Statistically analyzed the number of public and private medical institutions, health resource allocation and service situation of Wuxi city. Found that in the aspect of the number of private medical institutions, medical organizations with various forms had begun to take shape in Wuxi. However, private medical institutions were less competitive compared with public medical institutions in medical service volume, staffing allocation, and operating efficiency. The government should give protection to the public welfare of public medical institutions, and encourage private medical institutions to be more specialized, refined and excellent. Meanwhile, the private medical institutions should improve talent structure, technological level of medical services, so as to form a sustainable and healthy development of medical organizations with various forms.