Abstract: In order to further implement the performance appraisal of tertiary public hospitals, effectively combine external with internal performance appraisal and give full play to the role of performance management in leading the high-quality development of public hospitals, this paper introduces the practice of launching internal performance management reform of a tertiary Maternity and Child Health Care Hospital, clarifies the significance, objectives and applied management tools of performance management reform, and elaborates the specific methods of establishing performance models. The effect of performance management reform was evaluated. After the reform, the management consciousness, medical capability and reputation of the Maternity and Child Health Care Hospital were improved, which played a positive role in promoting internal management reform, enhancing core competitiveness, optimizing service process and ensuring the sustainable development of hospital.