The purpose of this study is to analyze the influence of external environment, organizational characteristics on informatization level in hospital settings, and to provide suggestions to improve the informatizaiton level of strategic information system of hospitals. In order to achieve study purpose, causal model was developed and empirically tested. Data were collected from 716 managers of 89 hospitals keeping information system in Busan and KyungNam Province using self-administered structured questionnaire. Major results of this study were as follows; First, among hospitals which had information training programs, informatization capacity was significantly higher. Moreover, informatization capacity was significantly varied by ownership type, institutional level, and number of beds of hospitals. Second, environmental uncertainty, intra-industry competition intensity, decision-making concentration, work standardization variables and perceived benefits were found to be significant affecting factors on informatization capacity as a result of path analysis. Third, support of top-management and perceived benefits were found to be significant affecting factors on informatization capability as a result of path analysis. Especially, informatization capability was positively affected by informatization capacity. Finally, perceived benefits was found to be significant affecting factors on informatization competency as a result of path analysis. Especially, informatization competency was positively affected by informatization capability.