The competition between hospitals has become an issue for many hospitals because of the sudden increased number of health providers. As the marketing or customer management have become important factors as means of competition, a number of hospital have been considered or already adopted the coordination system. A system dynamics model is developed to see the effect of the hospital coordination system. This paper after briefly explaining the structure of the system dynamics model, discusses the roles of the hospital coordination system with examples. The system dynamics model quantifies through simulations the process of effects of coordination system on the number of customers, productivities of employees (nurses and doctors), and finally the financial status. As a conclusions of the simulations and their analysis, it is concluded that coordination system could be more effective than the investment to the facilities. Since the study is based on only one hospital case, it is limited. However, it explains the mechanism of the coordination system quantitatively as well as qualitatively.