The paramount role of business ethics in the functioning of healthcare establishments is a desideratum and requires due attention and thoughtful consideration in today’s competitive world. This study examines critical healthcare factors that affect govt. & private hospitals' operations.24 factors on a 5-point Likert scale comprised the structured questionnaire that served as the main source of data collection. The functioning and approach to ethical adherence in selected govt. & private hospitals were compared using the independent t-test. The study shows statistically proven and significant differences in the manner of functioning in both public and private hospitals and their approach to ethical adherence. Due to covid-19, data collection took longer than expected. The inferences of the study can be effectively utilized in identifying essential ethical norms to be followed in healthcare and the paramountcy of ethical functioning of healthcare establishments.