In recent years, Chinese health care has rapidly improved, especially in the areas of equity and accessibility of services. Like in lots of other foreign countries, the debate among scholars about the roles of the public and the private sectors in health service delivery, especially in hospitals, has waged for a long period of time. Policies began to take effect in 2000 and were strengthened in 2009; this health policy reforms raising the trend of private investments in China’s health service market first time. Does the performance of health service delivery systematically differ by ownership form? We have analyzed data from 148 Beijing public and private health institutions in 2004 to try to answer this important policy question. The data are unique and reliable, which originate from the Beijing Health Bureau. A data envelopment analysis (DEA) is used to evaluate the technical efficiency score for the panel of Beijing’s public and private health care institutions. We have found that public health care institutions have a lower efficiency score in the results from a comparison of two DEA models. The role of private hospitals in medical reforms is essential. Progressive privatization and decentralization will be the panacea in Chinese hospital system reforms.