Public hospitals in India function with scarce resources and meeting the expectations of highly qualified professionals at various levels may not be feasible through the organizations’ human resource practices, hence improving conditions at the workplace would be the most appropriate strategy for maintaining high quality of patient care. The study examined the nature of the relationship between organizational contextual factors with the quality of patient care in teaching and non-teaching public hospitals in India. It also examined the effects of psychological contract fulfillment in terms of ‘met expectations’ as an intervening variable that mediates the nature of the relationship between hospital contextual factors and the quality of patient care. The findings provide empirical evidence for formulation of human resource policies in the healthcare sector for enhancing the quality of patient care. The study has immense value for initiating reforms in public hospitals which are trying to improve the quality of patient care.