diff --git a/runtime/lua/vim/health.lua b/runtime/lua/vim/health.lua
index 110a98f40a..385e4acf7f 100644
--- a/runtime/lua/vim/health.lua
+++ b/runtime/lua/vim/health.lua
@@ -350,8 +350,8 @@ local path2name = function(path)
     -- Remove everything up to the last /lua/ folder
     path = path:gsub('^.*/lua/', '')
 
-    -- Remove the filename (health.lua)
-    path = vim.fs.dirname(path)
+    -- Remove the filename (health.lua) or (health/init.lua)
+    path = vim.fs.dirname(path:gsub('/init%.lua$', ''))
 
     -- Change slashes to dots
     path = path:gsub('/', '.')
diff --git a/test/functional/plugin/health_spec.lua b/test/functional/plugin/health_spec.lua
index 78cffd07fb..e0883db7e1 100644
--- a/test/functional/plugin/health_spec.lua
+++ b/test/functional/plugin/health_spec.lua
@@ -5,7 +5,7 @@ local Screen = require('test.functional.ui.screen')
 local clear = n.clear
 local curbuf_contents = n.curbuf_contents
 local command = n.command
-local eq, neq, matches = t.eq, t.neq, t.matches
+local eq, matches = t.eq, t.matches
 local getcompletion = n.fn.getcompletion
 local insert = n.insert
 local exec_lua = n.exec_lua
@@ -40,12 +40,18 @@ describe(':checkhealth', function()
     matches('ERROR $VIM .* zub', curbuf_contents())
   end)
 
-  it('completions can be listed via getcompletion()', function()
-    clear()
-    eq('nvim', getcompletion('nvim', 'checkhealth')[1])
-    eq('provider.clipboard', getcompletion('prov', 'checkhealth')[1])
-    eq('vim.lsp', getcompletion('vim.ls', 'checkhealth')[1])
-    neq('vim', getcompletion('^vim', 'checkhealth')[1]) -- should not complete vim.health
+  it('getcompletion()', function()
+    clear { args = { '-u', 'NORC', '+set runtimepath+=test/functional/fixtures' } }
+
+    -- "test_plug/health/init.lua" should complete as "test_plug", not "test_plug.health". #30342
+    eq({
+      'test_plug',
+      'test_plug.full_render',
+      'test_plug.submodule',
+      'test_plug.submodule_empty',
+      'test_plug.success1',
+      'test_plug.success2',
+    }, getcompletion('test_plug', 'checkhealth'))
   end)
 
   it('completion checks for vim.health._complete() return type #28456', function()
@@ -58,11 +64,9 @@ describe(':checkhealth', function()
   end)
 end)
 
-describe('health.vim', function()
+describe('vim.health', function()
   before_each(function()
-    clear { args = { '-u', 'NORC' } }
-    -- Provides healthcheck functions
-    command('set runtimepath+=test/functional/fixtures')
+    clear { args = { '-u', 'NORC', '+set runtimepath+=test/functional/fixtures' } }
   end)
 
   describe(':checkhealth', function()
@@ -208,9 +212,7 @@ end)
 
 describe(':checkhealth window', function()
   before_each(function()
-    clear { args = { '-u', 'NORC' } }
-    -- Provides healthcheck functions
-    command('set runtimepath+=test/functional/fixtures')
+    clear { args = { '-u', 'NORC', '+set runtimepath+=test/functional/fixtures' } }
     command('set nofoldenable nowrap laststatus=0')
   end)