Abstract: Radio Frequency Identification (RFID) is a technology that can be applied by hospitals to improve operational efficiency and to gain a competitive advantage over their competitors with today’s highly competitive market in the healthcare industry. This study explores the barriers of RFID adoption in Iranian healthcare industry context as one of the developing countries from the perspective of healthcare decision makers, managers and IT professionals. In these days hospitals need to enhance the safety and quality of healthcare if they want to remain in the competition with other hospitals. It has been proved that RFID system in healthcare has the potential to increase the patient safety, decrease the operational cost and enhances the tracking of items and humans and real time management of hospital equipment’s. Although, such technology has been adopted and implemented in countries such as USA and European countries, the rate of adoption in developing countries is still very low as compared to developed countries, despite the great potential of system to solve current problems of healthcare. A case study research with qualitative approach has been chosen for this study. The results show that organizational and environmental barriers, government policy and security and privacy concerns have an effect on the intent to adopt RFID in hospitals developing countries such as Iran. The results of this study will help decision makers as well as managers in the healthcare industry to better understand the determinants of RFID adoption. Additionally, it will assist in the process of RFID adoption and therefore, spread the usage of RFID technology in more hospitals.