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Generation of healthcare waste from different patient care activities in hospitals, pathology labs and research centres has been a matter of great concern for environmental and social bodies across the world. This concern comes from its infectious and hazardous nature which brings life taking disease such as human immunodeficiency virus and Hepatitis-B. Moreover, with the outbreak of corona virus disease 2019 (COVID-19) pandemic across the world, healthcare waste has become even more infectious like never before and showing its potential for claiming lives if not disposed properly. Additionally, the COVID-19 has put up another challenge in terms of exponentially increasing demand for personal protective equipments for healthcare workers such as doctors, nurses, ward boys, and sanitation workers. In this paper, seven criteria related to smart healthcare waste disposal system infused by circular economy aspects to recover value from disposables are identified and analysed using a decision making trial and evaluation laboratory (DEMATEL) method. The criteria have been prioritized by its importance and net cause and effect relationship through a causal diagram. Two criteria, (i) digitally connected healthcare centres, waste disposal firms and pollution control board, and (ii) providing a pollution control board's feedback app to public and other stakeholders, feature as strong reasons for a smart healthcare waste disposal system. Conclusively, this study provides a causal relationship model among the intertwined drivers of industry 4.0 and circular economy for developing a smart healthcare waste disposal system enriched with the benefits of circular economy. [ABSTRACT FROM AUTHOR]