Abstract
The agricultural economic literature is abundant with least-cost location studies of agricultural processing industries. Yet very little effort has been directed toward similar planning for public facilities in rural areas. The purpose of this paper is to present a conceptual model and its application to the planning of locations for additional multiple service hospital facilities in a predominantly rural area for 1980. The approach is based on the premise that areawide planning, as opposed to substantial reliance upon market mechanisms, is required to allocate health care resources among communities. In this approach it is assumed that all health care service cost functions are long run and that the time period of adjustment is such that fixed capital goods do not restrict adjustments in the service output of hospital facilities.
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