By the qualitative analysis of the quantitative and content description of the literature, the present situation of the development of the salary distribution system in public hospitals in China is taken as the research object. Then, we analyze the existing problems of the imperfect performance appraisal in China’s public hospitals, such as restricted total salary distribution, single mode of salary distribution pattern, unfair distribution and so on. Furthermore, we put forward improvement measures accordingly. This article teases out the relevant research of domestic scholars, and provides a clearer idea for future research.