With increasing government’s policy support for social capital investments in hospitals，investment in private hospitals has become a hot topic in the investment field in recent years. Data analysis of private hospital mergers and acquisitions （M&A） from 2013 to the first half of 2019 shows that due to factors such as policy planning，industrial integration and technological development，private hospital M&A in China has experienced development process of preparation stage，peak stage and adjustment stage，and it gradually transferred to “value investment” in the past five years. In the process，both industrial and financial investors integrate interest chain through a variety of investment models to seek investment return on investment. It should be noted that M&A process of private hospitals involves many risks associated with policy，capital raising，profit distribution，post-investment integration，etc. Therefore，effective measures should be taken to avoid investment risks，such as doing a good job in regulation and sub-market research，performing feasible investment planning，due diligence and talent，as well as improving medical technology and service capabilities.