The world is witnessing rapid advancement in healthcare. As a consequence, the amount of biomedical waste generated globally is growing at an exponential rate. However, management of the biomedical waste (BMW) still remains a difficult challenge. Mismanagement of BMW has alarming and life-threatening ramifications to human health and the environment. Key steps of BMW management are waste segregation, collection, treatment, and safe disposal. Leading international health organisations emphasise segregation at source as an important focus point to improve BMW management. In this chapter, the authors will study a BMW management network in an Indian healthcare facility. The different steps of BMW management will be analytically modelled and simulated. The importance of segregation at source will be investigated and a post-segregation policy with a penalty framework will also be suggested. The authors also conduct numerical experiments to test their model and suggestions. This computational study establishes the importance of accuracy in segregation to improve efficiency of BMW management.