For providing quality to patients, optimizing workflow, and eliminating wastes, the majority of healthcare industries are trying to adopt lean management principles. Value stream mapping is a key component of lean methodology, and it uses a flowchart to depict, analyze, and improve the actions involved in system. The aim of the study is to analyze the impact of VSM as a lean tool in the improvement of an existing healthcare facility. The main objective of the study is modeling the system through value stream map to identify wastes and non-value adding activities in the processes so that the system can get rid of bottlenecks, constraints and wastes. Sylhet women’s medical college hospital is chosen for conducting the study. The necessary data are collected by interviewing staffs and employees at outdoor and indoor departments and also by direct observations and going through previous records. eVSM software is used for creating current and future state value stream map. The total waiting time, processing time and lead time of the processes of outdoor departments and diagnostic center of the hospital is measured and improved over existing system in the proposed model of the value stream map. From this study it is evident that VSM can ensure smooth healthcare service and improve healthcare performance.