Adoption of internet of things (IOT) is crucial in government hospital to improve the service efficiency especially in reducing the congestion, long waiting time, misplaced records and understaffed. Previous studies concluded that IOT allows faster and safer preventive care, reduce the total cost, upgraded patient unit practice and developed sustainability. However, lack of study related to IOT and health care sector, particularly in Malaysian government hospital.  Despites all the government efforts to provide the best medical treatments, little is known on the adoption of IOT in government of hospital. The fundamental issues that need to be addressed is to identify the challenges in adoption of IOT. In conjunction with that, this study intends to examine the obstacles in adoption of IOT in government hospital. Innovation Resistance Technology will be employed as theoretical model to identify the obstacles. Furthermore, the proposed study also intends to overcome the obstacles by applying value stream mapping. The selection of value stream was due to its ability in identifying the non-value, waste and inefficiency. A Value Stream Mapping is used in the Lean Management approach and helps to create the flow of products for improvements.