In this paper, we have determined the strategic service design tools and methods by examining the associations among different size of health and medical service industry and investigate if service design tools and methods are positively related to service innovation. The categorized service design tools and methods in the service design will be used to examine the associations among two different types of health and medical service providers which are classified according to the operational regulations and sizes in Korea: clinics and general hospitals as a case study. Findings support that health and medical service industry may improve their performance winning the challenges associated with using the most appropriate strategic service design tools and methods in the service design.