The Ministry of Health is responsible to develop health, execute health policy and to deliver health services in Turkey. The Ministry is accountable to allocate and use health resources effectively. Growing health expenditures, increased quality and competition in the health sector put pressure on government hospitals to use their resources more efficiently if they want to compete with the private hospitals. This study wills evaluate the performance of 846 state hospitals (the hospital with patients beds) from 81 provinces in 2003, 2004, 2004, 2005 and 2006. Performance evaluation will be made by using Data Envelopment Analysis Opportunities given by DEA, different models (CCR and BCC) will be used to evaluate the hospital in terms of fixed yield and variable yield. The hospitals will be grouped in terms of provinces and regions. Performance evaluation will use the number of medical practitioner and medical experts, the number of patient beds and the expenditure of circulating capital as inputs and the number of inpatient, dead patients, surgery operations, yields of circulating capital and new born as output. After analysis effective and ineffective hospitals will be determined and recommendations will be made to improve for ineffective organisation.