This policy brief proposes a Public–Private Partnership (PPP) model to address severe overcrowding and long waiting times in Lahore’s public hospitals. Public facilities operate beyond capacity, with bed occupancy often exceeding 120%, while many trust-based private hospitals remain underutilized, operating at nearly 70–75% capacity. The proposed model aims to integrate these trust hospitals into the public healthcare system to optimize resource use, improve access, and reduce patient burden. Drawing on international PPP experiences from Kenya, Lesotho, and Sri Lanka, the policy emphasizes efficiency, quality assurance, and financial sustainability. Using qualitative stakeholder interviews and thematic analysis, the study identifies key challenges including financial arrangements, coordination, quality control, and regulatory gaps. The policy outlines a phased implementation strategy involving stakeholder engagement, pilot testing, digital integration, and continuous monitoring. Overall, the PPP model offers a practical and cost-effective solution to improve healthcare equity, patient outcomes, and system efficiency in Lahore’s overstretched healthcare system.