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The Battle for Patients: Why Public Hospitals Are Losing Ground to Private Clinics in Azerbaijan

BAKU, August 1, 2025 

A revealing report by Azerbaijan’s State Audit Office has shed light on a major imbalance in the country’s healthcare system: more than 90% of high-cost surgical procedures are being performed in private clinics—many of them funded by the state-run Mandatory Health Insurance Fund.

This trend persists despite official data confirming that public hospitals under the State Agency for Medical Territorial Units Management (TABİB) are fully stocked with essential medications and supplies. Nevertheless, in 2023–2024, the majority of operations costing over 5,000 manats took place in the private sector.

A survey conducted by Khazar Khabar highlights the root of the issue. One Baku resident who underwent surgery in a public hospital remarked, “There was no difference from a private clinic—I paid the same amount.”

Others pointed to the human capital divide. “Private clinics employ top specialists,” said one respondent. “Doctors with international training often choose private work for better pay and working conditions.”

Another participant noted the systemic shortcomings in public facilities: “Even the best doctors can’t deliver results without proper equipment. Public hospitals must first improve conditions—only then can they attract top professionals and earn public trust.”

Medical expert Adil Geybulla attributes the trend to a mismatch between public expectations and the quality of services currently offered under the insurance scheme. “Qualified professionals are drawn to private clinics largely due to better financial incentives,” he said. “That’s why patients with complex cases or needing intensive care often turn to the private sector, accepting the higher costs.”

To reverse the trend, Geybulla emphasized the need for structural reforms. “The public sector must be fully integrated into the insurance system. Doctors should be paid competitively and offered social benefits. Equipment and infrastructure must meet modern standards. Only then can public hospitals effectively compete.”

He also pointed out a critical gap: Azerbaijan still lacks a municipal-level healthcare system that could serve as an alternative to both state and private sectors.

Responding to media inquiries, TABİB confirmed the statistics and explained that many of the procedures outsourced to private facilities involve complex surgeries requiring high expertise and specialized equipment. Under the public-private partnership model, some of these procedures are referred by state hospitals and financed through mandatory insurance.

TABİB added that it is also working to expand the capacity and infrastructure of public medical institutions—an essential step if public hospitals are to regain patient trust and parity with the private sector.

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