Undoubtedly, blood transfusion is one of the critical aspects of patient safety in hospital. Some researches point out that the probability of adverse blood reactions for patients could be as high as 20% after blood transfusion. In serious cases this may result in death of patient. The purpose of this study is to implement RFID technology with functions such as identifying, tracking, re-reading, and re-writing to develop a hand-held, multi-functional recording device for blood transfusion process. The novel system for identification of patients, blood bags, and the medical technologists was developed and evaluated in a regional hospital. The results reveal that this system can enhance the efficiency and effectiveness of managing blood bags and patients and gain significant patient safety to reduce hospital liability.