Abstract:

RealizationA s in many other countries around the world, Turkey has appealed to Public Private Partnerships (PPPs) to deliver large-scale public hospital investment and services in recent years. Traditional public procurement requires the private sector to build up upfront investment, and the Ministry of Health to finance this investment, and then operate respective facility. Whereas, within PPP framework, the private sector should design, finance, build up and operate the facility in question over the life of long-term contract. Government pays annual service fee to private partner in return of the provision of these services. Within a PPP program developed, Turkey has forecasted to deliver health facilities with 41.000 hospital beds through this method. 20 hospitals with 30.000 beds were tendered out and reached commercial close. As of first half of the year 2017, only 12 out of 20 contracts have succeeded to reach financial close and 3 hospitals were inaugurated. This study attempts to appraise performance of PPP contracts in the healthcare through investigating quality of feasibility studies, degree of competition for market in tenders, and capacity of contracts to access to finance. The study concludes, PPP contracts in the healthcare have failed to bring about proposed effectiveness and efficiency

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