EXAMINING THE CAPACITY EXPANSION OF HOSPITALS IN THE TRANSFORMED TURKISH HEALTH SYSTEM

This article empirically analyzes the determinants of capacity expansion in the local hospital markets in Türkiye. The aim of the paper is to explain changes in bed capacities of privately- and publicly-owned hospitals in local districts of Türkiye over the late stages of health reforms under the Health Transformation Program (2003-2013). The empirical analyses rely on the yearly countrywide data on hospitals, demand conditions, and local market characteristics over the period of 2010-2014. The estimation results did not show evidence for the presence of local market competitive pressure on the growth in hospital bed capacity of local districts in Türkiye. Thus, based on the findings of the article, it cannot be concluded that the local competition among hospitals led to a rivalry to expand their bed capacities. It appears more appropriate to interpret the capacity expansion of private hospitals as a consequence of the increased inclusion of the private sector in healthcare provision within the publicly-funded universal health insurance system and favorable market environment thanks to the health reforms.