Purpose <p>This study aims to evaluate an adapted needs‐finding process, termed “Caredesign,” which focuses on identifying service delivery and administrative inefficiencies in low‐ and middle‐income countries (LMICs). The research question is whether modifying the traditional Biodesign needs‐finding phase can yield actionable insights for healthcare service innovation in resource‐constrained settings.</p> Methods <p>At a public university teaching hospital in Iran, we conducted semi‐structured interviews with 47 healthcare professionals (doctors, nurses, and administrators) to gather perceptions on operational challenges. A total of 354 problem statements were collected and then manually analyzed and categorized into six thematic groups. The process incorporated financial (money cycle) and temporal (time cycle) analyses to assess cost and time inefficiencies. Additionally, a bibliometric analysis using VOSviewer was performed to contextualize our findings within the broader field of healthcare innovation.</p> Results <p>Our analysis revealed that 23% of the problem statements pertained to executive management processes, 22% each to healthcare facility workspace management and medical technology, 17% to medical device management, 10% to human resource management, and 6% to data management. These results indicate that, contrary to the traditional focus on device innovation, systemic inefficiencies in service delivery dominate in LMIC healthcare settings.</p> Conclusion <p>The Caredesign approach demonstrates potential as a scalable, service-oriented framework that complements the traditional Biodesign process. By addressing operational challenges, it offers a promising pathway for enhancing healthcare innovation in resource-limited environments.</p>