This paper aims to measure the operating efficiency for military hospitals. Four performance models are developed for measuring overall performance, service efficiency, manpower efficiency, and revenue efficiency. In addition, this paper also constructed a performance management matrix, which would give recommendations for these inefficient hospitals to improve their efficiency and productivity. The results show that most military hospitals are inefficient in service performance and revenue performance. It is suggested that the military hospitals should expand customer source and strengthen cost control to improve their operating efficiency. The application of DEA was validated to provide a reference for military hospitals on performance measurement. Finally, this paper provides some suggestions generated from the empirical results as a management reference for the corresponding department.