Abstract: Objective To establish a performance evaluation system for the department directors in public hospitals and to provide reference for public hospital management. Methods Based on literature review, the balanced scorecard methodology and 360° feedback were used to develop the draft of the Performance Evaluation System, then through expert discussion, it was put into preliminary application. Results The Performance Evaluation System was comprised of six dimensions: customer evaluation; internal process; economic operation; learning development; self-management and social responsibility, 30 items in total. Conclusion Based on the balanced scorecard methodology and 360° feedback,the Performance Evaluation System showed satisfactory reliability and adaptability, acting as a good tool for performance evaluation of department directors in public hospitals.