The paper aims to contribute to the understanding of Knowledge Transfer (KT) through implementing a Knowledge Management System (KMS) as a case study in the field of healthcare, leading to theory extension. The concepts of system thinking were used to explore in what way a hospital practically achieves and implements a KMS. To do so, a case study was conducted as a qualitative approach, and data was collected by in depth semi-structured interviews with different stakeholders, including strategic management, technicians and end users, in addition to reviewing related documents and observation. Template analysis was also used as data analysis method. This case study provides evidence that system thinking provide benefit for KMS at both planning and implementation stages. Moreover, an emphasis on the understanding of KT would be to bring about the integration of care. Also, the findings illustrate that implementing KMS requires not only the theoretical awareness of the concept, but also requires learning through practice for a smoother implementation process. Flexibility, distributed leadership and end-user involvement are important, and communication technologies and strategies should focus strongly on the transparency, including communications tools and methods.