As instrumental healthcare institutions providing high quality patient care, hospitals are currently facing multiple challenges ranging from pressure to reduce costs to a rapidly increasing elderly population. From a process perspective hospitals feature support and management processes, which enable the core process of providing patient care. One of the most crucial process areas – bed management – refers primarily to logistics processes related to the physical beds in hospitals. However, these are closely intertwined with diverse management and support processes (e.g., occupancy management). In order to conceptualize bed management as a process area from a holistic perspective, we develop a capability framework based on a thorough literature review as well as subsequent evaluation of the framework’s relevance, completeness, and practical applicability in two German hospitals. The capability framework includes 30 capabilities grouped into six overarching capability areas. It suggests that efficient and effective bed management is predicated on pooling organizational resources from various organizational units and functional areas. Our work serves as a foundation for the development of a respective maturity model. It enables practitioners to systematically manage capabilities related to bed management and supports them in deriving roadmaps, conducting fit/gap analyses, and prioritizing topics, while accounting for the hospital-specific context.