This thesis examines the reasons for choice of the implemented organizational model of OUH prior to the hospital merger of January 2009. The analysis begins with a comparison of the goals manifested by the three organizational levels of the studied institution and namely by the State, the South-East RHA and Oslo University Hospital (OUH). It presents the original organizational models by Administrative Director of OUH, Siri Hatlen as well as the reinterpretation of the models adjusted to the Hospitals’ infrastructure. Finally, the thesis explores the origins, understanding and future of the organizational model deployed based on a series of elite interviews with top management of OUH and representatives of the City Council of Oslo.The founding of the study implicates that a process of restructuration of OUH was decentralised and the choice of the model was accomplished within a narrow internal managerial group in OUH. During the first year of its’ existence, OUH was a closed rational organization with a strong action orientation. The chosen model is based on function’s principle, and clusters the activities according to the medical speciality involved.