The purpose of this study was to evaluate the technical efficiency of public hospitals in Mongolia and to test the link between technical efficiency and various factors such as level of hospital, location of hospital and time period observed. In this study non-parametric data envelopment analyses (DEA) was used to assess the technical efficiency of hospitals. The original data set consists of almost all secondary and tertiary level public hospitals in Mongolia making the study nationwide and help to get the overall information on technical efficiency of public hospitals in Mongolia. The DEA results in this research provide efficiency scores for each of the hospitals through three year of period. For each inefficient hospital the reductions in inputs and/or increases in outputs needed to bring the hospital up to full efficiency. The findings of this research indicate that the secondary level hospitals in provinces on average are significantly less efficient (p<0.05) than secondary level hospitals in cities. Decision-makers should reevaluate hospital performance and reallocate resources among across regions based on needs and necessities to maximize system-wide efficiency.