As of 2018, 577 (37%) out of the 1,534 inpatient health institutions operating in Turkey constitute private health institutions. Around 13% of these hospitals consists of top 5 hospital chains which have more than 2 times average hospital bed capacity compared to other private hospitals. Top hospital chains are building greater and more comprehensive healthcare services, with larger facilities particularly in big cities. The emergence of new health technologies and increasing expectations and awareness in the consumer side can be specified as the main factors that will require new business models for health institutions.
In addition, health tourism and city hospitals (PPP Investments), which are rising values in health industry in Turkey, are also among the important factors that will be effective in the strategy design of private health institutions in the future. The Turkish government has taken into consideration this booming health tourism sector and launched an incentive program for the promotion of health care sector abroad. Covid 19 pandemic also rendered the private health care institutions to invest more for the digital solutions for the follow up of the patients.
With 164 HIMSS EMRAM stage 6 and 7 hospitals, Turkey gets ahead of Europe considerably. While there are a total of 16 hospitals at stage 6 in Germany, Spain and Italy, with a total of 163 hospitals Turkey has got ahead of Europe considerably. However, hospitals need digital solutions and consultancy in the compatibility and the communication of the medical devices.
It is expected that that organic growth as well as the consolidations in the private healthcare sector will continue in the coming years. This strong privatization trend in Turkey’s healthcare industry and construction of many private hospitals offer increased sales opportunities and less complicated procurement requirements compared to the tender requirements used by the Ministry of Health.
Business Finland would like to invite Finnish companies providing digital solutions in healthcare industry to meet the decision makers in the leading private hospital chains of Turkey in a virtual event on January 28th 10:00-11:30 Finnish Time which will be organized in cooperation with the Health Committee of Foreign Economic Relations Board of Turkey (DEIK).
Business Finland internationalization advice and funding services for Finnish companies, e.g. Explorer funding such as Market Explorer for acquiring knowledge for international market entry, Group Explorer for joint SME export opportunities.
Additional market report available for Finnish companies from: nilufer.alapinar(at)businessfinland.fi
The Healthcare sector in Turkey is primarily managed by the Government through the Ministry of Health (MoH), universities and other semi-public organisations. However, the government has been encouraging the private sector to invest in the healthcare sector and gain a wider role, which consequently resulted in the number of private hospitals reaching 577 in 2018, compared to 268 private hospitals in 2005. Investments in the healthcare sector are expected to continue as the government targets to increase the number of hospital beds per 10,000 people to 32 in 2023 from the current level of 28.
Turkey is an attractive healthcare market with a growing elderly population, with significant scope for expansion compared to OECD players. Healthcare Spending Per Capita in 2018 is 1.2 k $ in comparison to OECD average 4.1k $ Turkish Healthcare Spending to Providers has increased from 36 Billion TL in 2009 to 119 Billion TRY in 2018. Growth in Aging Turkish Population: Ratio of population aged over 65 in the total population was 4,34% in 1990 and this ratio rose to 9.1%, with 7.5 million people. According to population projections, the elderly population ratio was predicted to be 10.2% in 2023, 12.9% in 2030, 16.3% in 2040, 22.6% in 2060 and 25.6% in 2080.
Thereby there will be a need for long term care from home, distant care and integrative medicine solutions, resulting from aging population, urbanization and depending on lifestyle which will increase non-communicable chronic diseases that become widespred in the population. It is estimated that the growth of upper middle and high income households in the country will increase the demand for private healthcare providers.