Plastic waste poses a critical challenge in the healthcare sector due to its predominant reliance on a linear "make-use-dispose" model, where plastics are typically incinerated or landfilled. This study examines Swedish healthcare waste management practices, encompassing Swedish and EU regulatory frameworks, hospital protocols, disinfection methods, and recycling processes. A key barrier to recycling healthcare plastic waste (HCPW) is the uncertainty surrounding effective decontamination. To overcome this, the paper proposes a circular solution involving on-site microwave-assisted disinfection and shredding, followed by chemical recycling through pyrolysis. This approach considers operational, legal, and technological landscapes and underscores the need for a multidisciplinary solution to enable the transition. This paper also presents a stakeholder collaboration and value capture matrix, identifying the shared value in collaboration among key stakeholders, including hospitals and healthcare service providers, on-site disinfection machine manufacturers, waste management firms, and chemical recycling companies, to advance recycling and foster a circular economy for HCPW.