In recent years, hospitals have begun to invest in RFID systems to control costs, reduce errors, and improve quality of care. Despite the transformative impact that RFID may have in healthcare settings, few studies have examined how and why this change may occur. The purpose of this study is to systematically understand how RFID can transform work practices and address cost, safety, and quality of care issues, most notably in inventory management. We leverage a sociomateriality framework to explore the causal linkages that connect the material properties of RFID with the behavioral changes that are observed through its use. By linking the material properties of RFID with innovations in existing practices, we provide a data-driven account of how and why RFID is useful in this setting. In doing so, we also contribute to recent work by IS scholars who argue for a reconfiguration of conventional assumptions regarding the role of technology in contemporary organizations. By adopting this perspective, we recast the issue of whether or not IT matters, and instead offer interesting and useful insight into how and why it does.