This study analyzes the efficiency of public long-term care hospitals that are mostly in operation under the government consignment. Using the Data Envelopment Analysis (DEA), the study finds the overall relative efficiencies of public long-term care hospitals and identifies the causes of inefficiency in terms of size and pure technical efficiency. For the nationwide expansion of public long-term care hospitals in the future, the study also provides the identification of the relationships between the potential demands on the public long-term care hospitals in the local communities and efficiencies of those hospitals. To do these, the efficiencies of 58 public long-term care hospitals are analyzed. The results of the CCR and BCC models show that the overall efficiency of public long-term care hospitals is relatively low with an average of 0.62. It is also verified that the potential demand on the public long-term care hospitals in the local community affects the efficiency of the hospitals.