Sourcing is evolving into a strategic process for organizing and fine-tuning the firm’s value chain. Companies need to strategic sourcing in order to survive within the industry, particularly hospitals which are facing rapidly competition to provide high quality services in healthcare. Healthcare organizations need to leverage the right capabilities from the right source, and the right shore, at the right cost to improve their competitive position. Capability sourcing is an organizing process to execute strategic sourcing and improve the firm’s competitive position through gaining access to best-in-class capabilities across the value chain to ensure long-term competitive advantage. The main problem is a lack of technique to explore sourcing alternatives (insourcing, co-sourcing and outsourcing) and choose the right sourcing model. Our research solution is applying conceptual modeling as a technique to create schematic descriptions of alternative solutions based on organization’s capabilities to facilitate strategic sourcing decision making. The fundamental requirement of capability sourcing conceptual modelling is a language as a carrier for modeling intermediate artifacts of sourcing alternatives. Our position is introducing service-dominant logic conceptualisation as a well-defined language for capability sourcing conceptual modeling.