Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. The Care-A-Lot Hospital Group wishes to locate an outpatient clinic or clinics in a rural area of Africa. The construction costs and other considerations
2. The Care-A-Lot Hospital Group wishes to locate an outpatient clinic or clinics in a rural area of Africa. The construction costs and other considerations suggest that one or two centers would be about right. Since traveling is difficult for patients in this part of the world, proximity to such facilities often dictates their choice. Therefore, location is best determined based on weighted distance (number of patients times distance from the facility). Figure 13-17 shows the annual number of patients likely to visit the clinic(s) and their cluster locations. It is estimated that it costs an average of $0.75 per kilometer (prorated on the basis of a one-way trip) for a patient to travel or be transported to the clinic(s). This estimate is based on lost productivity, direct travel costs, and indirect travel expenses paid for by others. a. What is the best location for a single clinic? b. If two clinics are to be located, where is the best location for them? c. A clinic costs $500,000 (U.S. dollars) per year to equip and staff. This is paid through charitable contributions and government subsidies. On purely economic grounds, should the second clinic be built? Figure 13-17 Grid Overlay on Patient Concentrations in a Region of Africa
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started