Preventive healthcare facility location planning with quality-conscious clients

Ralf Krohn (), Sven Müller and Knut Haase ()
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Ralf Krohn: Universität Hamburg
Knut Haase: Universität Hamburg

OR Spectrum: Quantitative Approaches in Management, 2021, vol. 43, issue 1, No 2, 59-87

Abstract: Abstract Pursuing the overarching goal of saving both lives and healthcare costs, we introduce an approach to increase the expected participation in a preventive healthcare program, e.g., breast cancer screening. In contrast to sick people who need urgent medical attention, the clients in preventive healthcare decide whether to go to a specific facility (if this maximizes their utility) or not to take part in the program. We consider clients’ utility functions to include decision variables denoting the waiting time for an appointment and the quality of care. Both variables are defined as functions of a facility’s utilization. We employ a segmentation approach to formulate a mixed-integer linear program. Applying GAMS/CPLEX, we optimally solved instances with up to 400 demand nodes and 15 candidate locations based on both artificial data as well as in the context of a case study based on empirical data within one hour. We found that using a Benders decomposition of our problem decreases computational effort by more than 50%. We observe a nonlinear relationship between participation and the number of established facilities. The sensitivity analysis of the utility weights provides evidence on the optimal participation given a specific application (data set, empirical findings).

Keywords: Discrete choice; Healthcare; Random utility; Configurations of facilities; Facility location; Benders (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s00291-020-00605-w

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