The governance structure is regarded as the self-protection mechanism of the parties of the hospital (investor, doctor, management, patient and supplier). Lack of the protection, the parties will increase the price as the compensation. Who will be the member of the public hospital governance structure is the critical issue important issue. The author applied the transaction cost theory to analyze this issue and concluded that the investor (government), doctor and the management should be the member who had the voting rights and the supplier, the patient should be the member who had the informed rights. The board of the director should consist of the voting-rights member and the supervising board should consist of the informed rights member.