In this paper strategic planning is applied for effective management to improve hospital income. Though community hospital has been set up for improving the health status of community, it must be trying to increase income for continuing with referral hospital in the community. The most useful tool of management to do this purpose is thought of strategic planning. Therefore this paper developed strategic planning a typical community hospital, which for it presenting the strategic planning process and developing the simulation model for evaluation of strategic alternatives. In the result it is represented that admission rate is the most sensitive to hospital operating income among the important variables in the model. And simulation by changing the parameter could estimate the yearly hospital income in the response of alternatives. This strategic planning simulation model has had constraints as number of date but also significance such as evaluating the alternatives by quantitative model and at first applying the hospital in our country.
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