The constitution stipulates that it is required to establish public health institutions. Among all the public health institutions, public hospital, such as municipal hospital or hospital under Department of Health, Executive Yuan, is mostly closely associated with public health. However, comparing the salaries with other healthcare personnel working in the private sector, it is difficult to attract the top physicians into public hospitals. In order to keep the salaries in public and private sectors in balance, or at least minimize the gap, Department of Health Administration initiated the financial incentive program. There are four municipal hospitals in Kaohsiung City: Kaohsiung Municipal United Hospital, Kaohsiung Kai-Suan Psychiatric Hospital, Kaohsiung Municipal Min-Sheng Hospital and Kaohsiung Municipal Chinese Medical Hospital. Since these four hospitals make distinct profits, the amount of financial incentives the staff received are different. Municipal Hospital pays financial incentives in accordance with the laws and rules passed by the direct authority which is Department of Health, Kaohsiung City Government. In this article, we analyze Kaohsiung Municipal Hospital financial incentive program to discuss the content, defect, suggestions and opinions of the staff, real financial incentive fraud cases, applicable law analysis, and whether or not the program conforms to our current concept of administrative law. This article is divided into seven chapters: prologue, introduction of Kaohsiung Municipal Hospital financial incentive program, real fraud cases, analysis on financial incentive program survey, elaborate on the applicable laws, the financial incentive program and the administrative law concept, conclusion and suggestions. It is hoped to bring up some concrete ideas for improvement, to clarify the applicable laws, to reflect the actual opinions and suggestions of the staff toward financial incentive program, and eventually to perfect the program so it is legitimate under both constitution and laws.