Healthcare Industry which is one of the most crucial components of service sector includes many sub sectors in it comprising of Hospitals, Medical Infrastructure, Medical Devices, Clinical Trials, Outsourcing, Telemedicine, Health Insurance all of which delivers goods and services to treat patients on preventive, curative, rehabilitative, and palliative care basis. Leading the healthcare from the front is the hospitals and its significance has been broadened and organizationally they dominate the rest of the health care system. Since service delivery by hospitals is a matter of patient lives which is highly intangible in nature and can't be physically viewed or touched like a manufactured product and since hospitals are becoming more complex and so have the competitive forces, opportunities for errors abound and as the patients are also demanding for better services, delivering an error free service has become a discerning tool in the never ending race among the corporate health care providers endeavors to attain the numerous top positions. In the above said context, Six Sigma offers an approach to improve service effectiveness and service efficiency in the hospital settings.