The scheduled implementation of the plan of National Health Insurance at the end of 1994 in Taiwan will inevitably result in two things: 1)hospitals, public or private, will face patients of only one status-insured; 2) healthcare prices will be unified and fixed. Therefore, the role and function of public hospitals will need to be redesigned. Public hospital bears policy-related responsibilities bestowed by teh government and those responsibilities in return determine the public hospital's role and function. However, no previous research or document ever define the policy-related responsibilities of public hospitals. Moreover, defining this kind of responsibility is ofentimes difficult and involves a great deal of subjective judgement. As far as the definition goes, this paper utilizes the delphi Method, or Delphi Technique, to lay the basis of demarcation. Since different system of public hospital is dictated by different authorities, this paper focuses on provincial and municipal hospitals. Data used in this research paper is collected through mailing questionnares to experts whose opinions then provide the demarcation criteria for determining the policy-related responsibilities of public hospitals. The demarcation criterion of social or policy- related responsiblilities is finalized when over 75 percent of experts approve of it. According to this research, there are five major groups of responses. Itis then this paper suggests the authorities concerned make different policy accordingly to handle differnet kind of responsibilites. Eventually, those policies should be the reference for redesigning the role and function of public hospitals in the future.