With the institutional and market changes in hospitals, strategic management has become increasingly important. Strategic managerial innovations can have impact on market pioneering and hospital performance, enabling better customer satisfaction, productivity improvement, and quality management. Hospital Information systems also require strategic planning to improve functionality in all aspects. This article reviewed the concept of strategic management and strategic information system (SIS), and summarized a framework for developing SIS for hospitals. The SIS formulation process consists of two interrelated phases: organizational analysis and SIS development. The first phase involves an analysis of the hospital's current position and the development of the hospital's vision and goals. The second phase incorporates three activities: SIS goals assessment, strategic information requirements analysis (SIRA), and SIS implementation planning. In particular, in SIRA, four dimensions of SIS and their interrelationships between dimensions would permit an organization to specify the strategic information needs within a hospital. Hospitals that integrate this framework with other aspects of their own hospital management information systems cope more effectively with the rapid changes and challenges encountered in today's health service industry.