Case 5-1:

Case 5-1: Health Maintenance Organization (A) In January 2012, Joan Taylor, the administrator of the Life-Time Insurance Company HMO in Buffalo, New York, was pleased with the Austin, Texas, location that was selected for a new ambulatory health center. (The process used to select this site is discussed in Chapter 8.) The center not only would serve as a clinic for the acutely ill but also as a center for preventive health services.An important goal of the HMO was to offer programs that would encourage members to stay healthy. Various programs already had been planned, including those on smoking cessation, proper nutrition, diet, and exercise.The clinic portion of the health center would be quite large; however, certain constraints in the layout would be necessary. Acutely ill patients would need to be separated from