TRANSFORMATION OF PROCUREMENT PROCESSES IN PUBLIC HOSPITALS: THE STATE SUPPLY OFFICE MODEL

Authors

Ayşe Erinç ERGEN
Dokuz Eylul University
https://orcid.org/0000-0002-0915-1986
Ahmet ÖZEN
Dokuz Eylul University
https://orcid.org/0000-0002-9635-5134

Synopsis

This chapter examines the transformation of procurement processes in public hospitals within the framework of the State Supply Office (SSO) model. Increasing healthcare expenditures, limited resources, and supply chain vulnerabilities have brought centralized procurement solutions to the agenda. The SSO model aims to achieve cost savings through economies of scale, enhance transparency, and ensure efficient use of public resources. Literature indicates that centralized procurement mechanisms significantly improve efficiency, accountability, and quality. International case studies such as the NHS Supply Chain in England, Canada’s centralized procurement model, and the European Union’s joint procurement of COVID-19 vaccines are compared. Findings show that while centralized structures provide supply security during crises, they may also lead to challenges such as the exclusion of small suppliers and lack of transparency. Theoretically, the SSO model is evaluated through the perspectives of New Public Management, Agency Theory, Economies of Scale, and Public Value Theory. Ultimately, it is emphasized that a sustainable procurement system in Turkey should not only focus on cost-effectiveness but also integrate transparency, digitalization, international cooperation, and societal value.

Author Biographies

Ayşe Erinç ERGEN, Dokuz Eylul University

Ayşe Erinç Ergen (Izmir, Türkiye) is an independent researcher. Ergen completed undergraduate education at Dokuz Eylul University in the department of Labour Economics and Industrial Relations in 2000, master's education at Dokuz Eylul University in the department of Fiscal Law (With Thesis) in 2024. Primary research interests include university revolving fund enterprises, public hospital procurement processes, state supply office.
E-mail: erinc.ergen@deu.edu.tr, ayerer@gmail.com | ORCID: https://orcid.org/0000-0002-0915-1986

Ahmet ÖZEN, Dokuz Eylul University

Prof. Ahmet Özen serves as a faculty member at the Public Finance, Faculty of Economics and Administrative Sciences, Dokuz Eylul University, Izmir, Türkiye. Özen completed undergraduate education at Dokuz Eylul University in the department of Public Finance in 1999, master's education at Dokuz Eylul University in the department of Public Finance (With Thesis) in 2002, and Ph.D. degree from Dokuz Eylul University in the field of Public Finance in 2008. Primary research interests include budget and fiscal planning. Özen has national and international articles and book chapters published in Turkish and English. Selected published books include Budget Policy; Performance-Based Budgeting System and Its Applicability in Türkiye.
E-mail: ahmet.ozen@deu.edu.tr, hmozen@gmail.com | ORCID: https://orcid.org/0000-0002-9635-5134 | ResearcherID: Q-2307-2019 | Scopus ID: 25960264700

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Published

December 23, 2025

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This work is licensed under a Creative Commons Attribution 4.0 International License.