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The paradigms of health service rendering have been deeply questioned. Complex and dynamic environments involving multiple factors, knowledge areas and possibilities for decision-making have turned hospitals into knowledge intensive organisations, demanding a strategic perspective for managing knowledge assets in healthcare organizations. This paper aims to propose an integrative model of knowledge management applied to the specific context of hospital healthcare administration. The research method comprises participant observation in one large Brazilian hospital network, literature review and validation of the framework by experts in the innovation and knowledge management fields. The main finding of the paper is a theoretical framework integrating information management practices, human resource management (HRM) approaches, knowledge-based process and decisionmaking routines in order to act on quality, effectiveness and welfare costs within the hospital context. The constructs of knowledge organisation (Choo, 2003), absorptive capacity (Zahra & George, 2002) and organization of learning processes (Argyris & Schon, 1996) constituted the proposed model. The paper conclusion emphasizes the pressing need for a systemic approach to deal with the knowledge management specific challenges in hospitals. [ABSTRACT FROM AUTHOR]