Abstract: Pressures to reduce costs are forcing hospitals to examine alternative strategies. Outsourcing has become a basis strategy in the public hospitals and has recently grown considerably in popularity. The impetus for this trend was the initiated by the Ministry of Health in Turkey with the fact that private sector pressures and competition would make public sector more efficient. Outsourcing arrangement can be an attractive option for cost management, providing benefits not only in terms of economics, but also in terms of quality and medical support. In this study, outsourcing strategy was examined in a large scale state owned hospital in Turkey. Results of this study show that outsourcing in hospitals in Turkey is used in which areas and in what quantities. How much of the total cost is divided on this issue and this method has been investigated both employees and hospital as well as the advantages and disadvantages.