The usage of medical resources can meet required overall medial quality via the implementation of knowledge managements. At the same time, it allows medical professionals to understand and recognize the management strategy of the hospital. They will stay with the hospital and assist it in keeping its competitiveness and the goal of sustainable operations. Therefore, it is an important topic for hospital managements nowadays to realize this goal. Based on this consideration, the objective of this study is to investigate the influence of knowledge management on organizational culture and organizational effectiveness. The sampled subjects in this study include doctors and medical professionals in the city-level Grade III Level I hospital in Shanghai City. A total of 376 questionnaire copies were dispatched and a total of 266 copies were returned with an effective rate of response as 71%. The results of this study indicated the following findings. 1. There is a significantly positive correlation between knowledge management and organizational culture. 2. There is significantly positive correlation between organizational culture and organizational performance. 3. There is a significantly positive correlation between knowledge management and organizational performance. 4. The organizational culture has a mediation effect between knowledge management and organizational effectiveness. At the final stage of this study, we proposed our recommendations for the health care industry with an expectation that these could serve as the direction for stipulating health care policies in the future and a reference for the design of medical professional’s works, personnel incentive managements, and in-service trainings. Embodied recommendations were also proposed for the health care industry to promote knowledge management and the practical implementation of strategies.