Barber Johnson graphic method is used to evaluate the hospital management especially for services management. Indicators used is Bed Occupancy Rate (BOR), Average Length of Stay (ALOS), Bed Tum Over (BTO) and Turn Over Interval (TOI). The objective of this study is to find out the efficiency of hospital management according to the Barber Johnson Graphic criteria and problems in accommodating it. This is an explorative study done in Syalful Anwar Hospital, Malang and also used secondary data taken from East Java Health Office Province. The study found out that from 38 hospitals only 5%, 10%, 18% and 16% of them could reached the efficiency area in 1994, 1995, 1996 and 1997 respectively. Some obstacles in applying the method are: government policies regarding tariff, hospital classes and several "rare" cases in patient made them stay longer than needed to give the medical student the opportunity to study them.