“…In recent years, efficiency of public hospitals has become a concern for policymakers and researchers dealing with health expenditure growth in both developed and developing countries [ 1 , 2 , 3 , 4 , 5 , 6 ]. In China, this issue has long drawn scholars’ attention, and several articles have been published [ 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 ]. Generally, Chinese public hospitals are classified according to three standards, namely service capacity (i.e., primary, secondary, and tertiary hospitals), service items (i.e., general and specialized hospitals), and administrative subordination by government agencies in accordance with regulations.…”