This article reports on research studying the influence of environmental and organizational factors on the adoption of the magnet hospital concept. Although research has been reported on the adoption of innovations by healthcare organizations, research on factors influencing the adoption of administrative advances remains an important area to investigate. Logistic regression was used to determine both the significance and direction of the association of environmental and organizational factors with innovation adoption. In addition, the size and type of the hospitals in the sample was used as a control variable. It was found for environmental factors that environmental complexity and community resources were associated with innovation adoption and that competition and network externalities were not. For the organizational factors examined, it was found that organizational complexity and control of domain were associated with innovation adoption. Slack resources and external communications were not associated with adoption. The findings from this study contribute to healthcare management research by enhancing the understanding of the innovation adoption process. The results have important implications for both healthcare providers and policy makers.