This paper aims to develop a research model to examine the mechanisms by which business analytics capabilities in healthcare units are shown to indirectly influence decision-making effectiveness through a mediating role of absorptive capacity. We employed a survey method to collect primary data from Taiwan's hospitals. Structural equation modeling (SEM) was used for path analysis. This study conceptualizes, operationalizes, and measures the business analytics (BA) capability as a multi-dimensional construct formed by capturing the functionalities of BA systems in healthcare. The results found that healthcare units are likely to obtain valuable knowledge as they utilize the data interpretation tools effectively. Also, the effective use of data analysis and interpretation tools in healthcare units indirectly influence decision-making effectiveness, an impact that is mediated by absorptive capacity.