This study discusses how to rationalize or innovate the managerial practice of the profitability-deteriorated hospitals in Korea, and attempts to suggest proper planning models and strategies to reorient them. For these purposes, the hospitals` financial indicators were analysed, the process of profit planning were reviewed, and strategic assessment were made, using relevant data. The analysis shows that failures both in proper capital investment to fixed assets and in effective containment of operating costs have been causing the worsening of profitability. For the improvement of the profitability management, seven procedural and behavioral strategies were suggested from the innovative and rationalizing perspectives, together with necessary prerequisite conditions to be equipped with for their implementation. This study concludes that the top management should attempt the changs on their own initiative.