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Location Planning: Hospital Patient Billing Software

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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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.