A low performance-low quality trap in the non-profit healthcare sector in Turkey and a solution

This paper develops a dynamic model of service performance and service quality and shows that the non-profit healthcare sector in Turkey, which performs a useful function of providing affordable healthcare services to low-income people, is trapped into a stable intertemporal equilibrium characterized by low levels of service performance and service quality. The model enables us to present an empirically demonstrated solution to this problem of low performance-low quality trap. The solution, which stipulates a particular policy for the supplier's provision of services, helps the sector to move from the low performance-low quality equilibrium to a high performance-high quality equilibrium.