Objective: Under the background of medical reform, it aims to study the matching relationship between the internal control construction level and development stage of public traditional Chinese medicine hospitals, so as to help traditional Chinese medicine hospitals correctly recognize the positioning and seize the opportunity to realize healthy and sustainable development. Methods: Field interviews and game theory are used to explore whether the management of traditional Chinese medicine hospitals in different development stages should pursue high-quality internal control level. Results: It helps the traditional Chinese medicine hospital adjust its position, establishes an internal control construction level in line with the current development, and achieves good results. Conclusion: Weighing the relationship between the construction and development stages of internal control in public Chinese hospitals is of great significance in addressing the plight of Chinese hospitals.