After stepping into 21st century of knowledge economy era, the enterprises¡¦ competition advantage depends on knowledge-management mechanism to promote the decision-making quality, supply better service quality, create core technology, cultivate team cooperation, and establish good relationship with customers. In Taiwan, the competition among medical industries is hot increasing since the practicing of health insurance. The request of medical quality is higher and higher. The medical industry must enforce the medical administration system to elaborate her efficacy. But the SARS infection incident during 2003 is ascertained that the infection almost was inside the hospital. The medical control system and policies were unsuitable and the medical workers operated without protection facilities. Therefore, the workers were infected SARS and six persons died for medical job. This disaster is due to the incompleteness of medical administration. To promote medical quality and performance, combining knowledge-management, clinic administration and quality control is necessary. The knowledge-management includes the acquiring, spreading, cumulating and sharing of knowledge. This study adopts questionnaire law and expert interview law quantity measuring tool.The statistic analysis is based on research framework and model. After the retrieval of questionnaire, the data are coded, checked, keyed. According to the change of quantity-measuring dimensions, the linear analysis- Pearsons relationship is chosen as proper statistic analytical tool. The regression analysis was conducted by SPSS 10.0 software. The result is used to understand the knowledge management of medical industry and discuss the factors, including individual cognition, organization culture, operating aspect and strategy consideration, affecting the performance of knowledge management. It is found that, the establishment of encouragement system, performance comments, on-the-job training, experience inheritance education, and psychology construct coach are all necessary to carry out the knowledge management of medical administration in medical industry. It is very important that the decision makers and directors should emphasize actually knowledge management and execute completely to enhance competition advantage and insure the medical service quality.