India’s Tier II and Tier III cities remain underserved in terms of healthcare infrastructure, creating an urgent need to scale up private healthcare facilities in these regions. The Ayushman Bharat-PMJAY scheme, aimed at improving healthcare access, has increased demand in smaller cities. However, the scheme's current pricing models fail to reflect the true cost of service delivery, leaving providers in a financial bind. “Rationalizing package pricing and providing operational subsidies for power and utilities, akin to those offered to government hospitals, can ease this burden. Without equitable pricing models and relief on operational costs, healthcare providers cannot sustain operations in these regions