The healthcare sector demonstrates a significant deficit in economic efficiency while closely connected to ethical concerns about society and the environment. Given the increasing global ecological challenges and energy constraints, it is imperative to prioritize environmentally friendly practices at every level to achieve sustainable development objectives. The World Health Organization (WHO) introduced the notion of Green Healthcare (GH) in this particular setting. Green healthcare (GH) is a methodology that prioritizes eco-friendly practices in healthcare facilities to ensure patient safety and environmental conservation. Nevertheless, the use of GH in the Indian healthcare industry remains restricted. In 2001, the Confederation of Indian Industry (CII) established the Indian Green Building Council (IGBC) with the aim of creating a sustainable built environment accessible to everyone. In order to tackle these difficulties, this study suggests the creation of Green Healthcare Initiatives (GHI) that will improve the sustainable performance of the healthcare industry. This study utilizes Structural Equation Modeling (SEM) to investigate the impact of GHI on the sustainable performance of the healthcare sector. It draws upon ideas such as the resource-based view, fuzzy set theory, and theory of planned behavior. This research is anticipated to aid policymakers, government entities, healthcare organizations, and healthcare facility users in developing environmentally friendly healthcare programs to improve sustainable performance and promote the sustainable development of the healthcare sector.