Abstract. Clinical stage medical education requires a teaching hospital with a specific learning environment in order to be able to meet the competency achievement of students. This study aims to determine the role of hospitals in achieving competency. The cross-sectional study was carried out with the subjects of the medical clinical stage of Universitas Muhammadiyah Yogyakarta students. The characteristics of hospital were measured by DREEM questionnaire, while the achievement of competencies was based on the scores of OSCE national board. The Spearman correlation analysis was conducted to determine the correlation between the characteristics of the hospital and achievement of competency. The results showed the mean of DREEM of 137.41 and the OSCE of 79.76. The correlation analysis showed no correlation between the characteristics of hospitals and achievement of competence (p=0.96). The score of the characteristic components of the hospital on the learning process was of 2.79 (a more positive perception), was of 2.72 (a more positive perception), on learning environment was of 2.67 (a more positive perception), on social environment was of 2.65 (very good socially) and on academic ability of the students was of 2.92 (feeling more on the positive side). The results of the study can be used by the faculty leader as a consideration to choose a hospital that is used as a place of education.