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Public-Private Partnerships in the Health Sector

Prof. Dr. H. Ercument Erdem

Public-private partnerships may be defined as the realization of long-

term maintenance, operation and construction of public infrastructure

investments by the private sector. Public services are thus provided in

collaboration for a determined period of time and on the basis of mutual

risk allocation through a contractual relationship between the public and

private sectors.

Under this model, the public side gains an alternative source of

financing for infrastructure and the provision of services, while the private

sector obtains an opportunity that may be attractive with regards to risk

allocation. Private sector participation is increasing in Turkey day by day

in the health sector where the need for speedy and qualified infrastructure

and service is dominant. The Law on the Construction and Renovation of

Facilities and the Procurement of Services via Public-Private Partnerships

by the Ministry of Health and the Amendment of Decrees Having the

Force of Law (“Law No. 6428”) entered into force with its announcement

in the Official Gazette on March 9th, 2013.

Historical Development

In Turkey, the roots of the public-private partnership model in the

health sector may be found in the Health Services Fundamental Law No.

3359 (“Law No. 3359”). Law No. 3359 enabled public health institutions

to be converted into public corporate entities by way of a Council of

Ministers decision. The first step towards public-private partnership was

thereby taken with the introduction of the concept of enterprise to the

health sector.

Article of May 2013