Medical systems worldwide are constantly under pressure to enhance their safety to patients, efficiency of their work, and quality of services. In this regard, leadership is very important in instilling a culture of continuous quality improvement (CQI). The present paper discusses the central issue of healthcare leadership that facilitates the development of long-term CQI in clinical and administrative settings. The paper has used a systematic literature-based analysis methodology to integrate international best practices and leadership theories based on the current empirical and theoretical research. It researches the application of transformational, participative, and servant leadership models to the patient-centered care, staff motivation, and evidence-based decision-making. Due to the analysis, it is demonstrated that the contribution of the culture of leadership and data and the cooperation of different disciplines should be viewed as critical to provide a long-term quality improvement. Some of the main insights include the idea that effective CQI efforts are based on leaders that develop a psychological safety, empower front-line workers and tie the improvement efforts to the business objectives. The implications on the health system are rather significant: the organizations should pay attention to the creation and improvement of the leadership training, work out the beneficial policies and include CQI as the strategic objective. The proposed study is an addition to the current discussion on the effectiveness of leadership and it offers practical advice to healthcare administrators and policymakers in an attempt to bring about sustainable quality change.