RISK ANALYSIS FOR PRIVATE HOSPITAL INVESTMENTS IN TURKEY

Abstract Investments of private hospital projects in Turkey are subject to substantial risks, which may not only emerge from project activities such as design and construction, but also from global issues that are beyond the control of project parties, such as legal and political risks. Therefore, investors must identify and manage investment risks effectively, in order to ensure a successful delivery. In this study, for identify the potential risks of private hospital investments in Turkey, a broad literature review was made and interviews were arranged with parties who are involved in hospital projects. A risk breakdown structure is developed for classifying the identified risks considering all phases of hospital investments. As a result a risk checklist with 110 potential risks for hospital projects in Turkey is established. Furthermore a case study was conducted in which a qualitative risk analysis is performed to see the most important risks that might affect the project performance. Three most important risks, among twenty one potential risks identified for the case project were; change in quantity scope of work, change in municipal plans and change in regulations of Private Hospital Act.