This study, targeting Korean tertiary hospitals and general hospitals, aims to analyze how value chain model inhealth and medical institution suggested by Duncan and else influences on hospital management. A survey wasconducted to verify the actual proof analysis of this study model. 880 questionnaires were distributed to entire 88hospitals and 739 copies were returned from 76 hospitals. This study mainly consists of three steps to analyze theeffect value chain activity has on management performance of general hospitals. For the first step, we analyzedthe effects service delivery activity has on management performance. For the second step, we analyzed theeffects service support activity has on management performance and for the third, we analyzed the effectsinteraction between service delivery activity and service support activity has on management performance. Themain results of this study are as follows. First, in terms of the management performance of scale, the factors whichinfluenced on daily charge of outpatient were service activity before treatment, at the moment of treatment andvalue chain activity, while more important factors in daily charge of inpatient were organizational culture,organizational structure and value chain activity. In terms of management performance of quality, the factors whichinfluenced on the first medical examination rate of outpatient were service activity before, at the moment of andafter treatment, while activity at the moment of treatment, organizational structure, and value chain activity which isinteraction were more important factors in average length of stay. In terms of non-financial performance, themanagement performance factors which influenced on job satisfaction were service activity at the moment of, afterthe treatment and value chain activity, while organizational culture, strategy resources and value chain activitywhich is interaction were more important factors in job commitment. Secondly, all the service support activity,service delivery activity and value chain activity had statistically significant effect on management performance.Among the three factors, service support activity had relatively high effect than others.