Journal of Research in Medical Sciences1735-1995832003092829692969ENSchool of Management, Isfahan University of Medical Sciences and Health senesces, Isfahan, Iran2003092820090205Introduction: The undesirable use of available resources, shortage of resources, and increasing expenses of health care services, demonstrate the need for performing studies on the productivity of health care organizations and implementing the new management techniques in these organizations. Methods: The objective of this research is to investigate the role of participative management (Suggestion system) in shahid fayazbakhsh hospital effectiveness and efficiency. The study population composed of all the employees of hospital (869 persons). The data was collected through the distribution of suggestion forms among the employees of the hospital. Results: 1- The percentage of bed occupancy in 2000 has declined by 1.57 % in comparison with of 1999. 2- The average length of patient stay in 2000 has declined by 7.13 % in comparison with of 1999. 3- The bed turnover rate in 2000 has increased by 5.64 % in comparison with of 1999. 4- The bed turnover interval rate in 2000 has declined by 5.56 % in comparison with of 1999. 5- The patient satisfaction rate in 2000 has increased by 11.6 % in comparison with of 1999. Discussion: The application of suggestion system could significantly increase effectiveness and efficiency of hospital performance.http://jrms.mui.ac.ir/index.php/jrms/article/view/2969