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    Location Planning: Hospital Patient Billing Software

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    Assume you are assigned to select five U.S. cities to establish regional headquarters for a growing company that presently has only a national headquarters in Philadelphia. The business is hospital patient billing software. What places would you go?

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    Solution Preview

    Selecting locations for a medical billing software company must take into account several
    factors. The areas selected should provide a market with demand for medical billing. It should also
    supply manpower to support billing processes, such as medical billing professionals and IT staff.
    Supplies or equipment needed to support the software include computers and servers. Consideration
    for location based on such supplies may also be a factor. If direct purchase of computer equipment
    costs less the company may want to locate its facilities within a reasonable distance of wholesale or
    discount computer suppliers or within a reasonable distance from computer equipment manufacturers.

    When considering the location for offices, the center of gravity method is suitable. This allows
    the company to locate offices within the center of larger regional hubs where there are plenty of
    opportunities for medical billing software to be utilized. Philadelphia is the original location of the
    software company. Philadelphia ...

    Solution Summary

    The hospital patient billing software for location planning is examined. The national headquarters in Philadelphia are determined.