Joan Taylor, the administrator of Life-Time Insurance Company, which is based in Buffalo, New…

Joan Taylor, the administrator of Life-Time Insurance Company,
which is based in Buffalo, New York, was charged with establishing a health maintenance organization (HMO) satellite
clinic in Austin, Texas. The HMO concept would offer Austin
residents an alternative to the traditional fee-for-service medical care. Individuals could enroll in the HMO voluntarily and,
for a fixed fee, be eligible for health services. The fee would be
paid in advance.
Ms. Taylor carefully planned the preliminary work that
would be required to establish the new clinic in Austin, and
Health Maintenance Organization (C)CASE 10.1
when she arrived, most of the arrangements had been completed. The location of the ambulatory health center (clinic),
however, had not been selected. Preliminary data on the estimated number of potential enrollees in the HMO had been
determined by census tract, and these data are presented in
Table 10.13 . Using the cross-median approach and the census-tract map in Figure 10.9 , recommend a location for the




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