Knowledge Management (KM) tools and processes, while established in many industries, are relatively new to healthcare. Healthcare organizations resemble virtual organizations that build flexible and dynamic care networks of multiple medical providers and professionals to address a patient’s needs. This research studies the major factors impacting knowledge management strategy and processes in the clinical nursing function in a large metropolitan area hospital. Empirical data has been collected and analyzed to understand what infrastructure components and process capabilities are the most important contributors to KM effectiveness in floor nursing. The results indicate that technology can play a pivotal role in KM initiatives among nurses, provided it supports the processes involved with knowledge acquisition and application to solving new problems. The findings have implications for the selection and deployment of information technology to enable knowledge management.