Public-Private Partnership (PPP) is an organizational model of public service delivery in which a public partner joins with a private one for a joint delivery of a public service, creating added value for both parties in this “partnership”. From the point of view of the public partner, it decreases public expenditure, increases the quality and distribution of public services, and reduces agency costs. From the point of view of the private partner, the benefits are in achieving the planned rate of return, reducing sub-investment costs, reducing agency costs, and avoiding debt risk. There are numerous studies on the correlation between economic development and investment through PPP, which have led to this research. According to the legal framework in Bosnia and Herzegovina, which is composed of entity and cantonal laws, a subject of PPPs may also be construction, use, maintenance and management or reconstruction of property for the purposes of meeting public needs in the health service sector. The aim of the paper is to explore the legal and institutional assumptions of investing through the PPP model in Bosnia and Herzegovina health service sector and to make recommendations for improving the PPP situation in the health service sector. In addition to the introduction and conclusion, the paper is structured in three parts. The first part represents a concise theoretical framework in which the subject of the research is situated, the second part presents the state of affairs pertaining to investments in the health service sector, and the third part analyzes the current state of the use of this form of public service delivery in Bosnia and Herzegovina. The concluding section makes recommendations for improvements in terms of improving the investment through PPP in the sector of health care services.