The reform of public institutions has gone through the stages of exploration，delegating power and invigorating，and classifying and promoting. Although certain achievements have been made，the relationship between the reform of public institutions and the market economy is still not clear，for example，a slow progress in the reform of classified management，too many personnel， heavy financial burdens，lack of survival of the fittest mechanism，and insufficient vitality. The employment system is not alive，and the employment system is only a formality. To deepen the reform of public institutions，it is necessary to re-understand the problems of the classification of public institutions. It is necessary to further clarify the organizational positioning of public welfare undertakings and strengthen the construction of the legal person governance structure of public institutions.At the same time，we will accelerate the development of private non-profit institutions and vigorously develop government procurement of services.