A Multilocation Capacity Expansion Model for Hospital Based Health Maintainance Organizations

  • J. L. Buchanan
Conference paper
Part of the Health Systems Research book series (HEALTH)


The health maintenance organization (HMO), an organized system for the delivery of comprehensive medical services, is an alternative to the traditional fee-for-service medical system in the United States. It is characterized by a voluntarily enrolled population which is assessed a fixed periodic payment independent of the amount of service consumed. This capitation payment acts as a budget constraint promoting efficient acquisition and allocation of resources.


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  4. Rao RC, Rutenberg DP (1977) Multilocation Plant Sizing and Timing. Management Science 22: 1137–1198Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1984

Authors and Affiliations

  • J. L. Buchanan
    • 1
  1. 1.The Rand CorporationSanta MonicaUSA

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