This paper develops and analyzes a model for hospital location and capacity allocation. The focus is on an urban/developing area. The first model is the convectional model and the second is an improved model with better constraints, previous work in the planning of hospitals and/or health centers in a region has been done with less constraints hence is easily implementable and has less administrative load but costs may be higher. This work focuses on developing and analyzing a model for hospital location and capacity allocation while optimizing a number of objectives, e.g. minimizing cost of establishment and maximizing coverage of patients. The model 1 is easily implementable and has less administrative load hence costs may be higher, prescribed Model has more variables (hence more CPU time) and requires more administrative load for implementation but costs are probably lesser. Hence cost can be reduced considerably if we can trade with speed of solution.

Keywords
Facility location, Location of hospitals and service level constraints.