Indian hospitals are growing at a brisk pace. Due to the cut throat competition, the perception of patients has changed. It is thus mandatory to identify and fulfill the perception of patients so as to be a best provider of services. That is why the focus of managers and academic researchers is in providing quality service to the customers. The objective of this paper is to identify the determinants of service quality and develop a scale for measuring these dimensions in health industry in Jammu and Kashmir India. 600 questionnaires were distributed among the patients of each of four public and private multispecialty hospitals of Srinagar city of Jammu and Kashmir State. Out of which only 400 questionnaires were received back from inpatients which means the response rate is 66%. Hair et al. (2008) formula was used to justify the sample size I.e. (for 1 item we should use 10 samples). Structure equation modeling was employed to assess the model fit and hypothesis testing. The results indicate that all the six dimensions except nursing services significantly impact patient satisfaction. T test was employed to investigate which sector is the better one; private sector came out to be the better sector.