Applying analytic hierarchy process to select optimal expansion of hospital location: The case of a regional teaching hospital in Yunlin

The implementation of the National Health Insurance in Taiwan since 1995 has resulted in Taiwanese residents having better medical security and care than before; however, it has also increased demand for medical services. Thus, hospitals and clinics have seen great growth in the recent decades. One problem is that the National Health Insurance program cannot fully support all of the hospitals and clinics. This has led to fierce competition between them. In such an environment, selecting the optimal location can increase the medical sectors´ competitive advantage. The serious aging phenomenon in Yunlin County, Taiwan, will place even greater demands on the medical service sector. This study will explore the best way to locate medical care providers in such varying environments, exploring potential advantages. Included in the study are data from hospital administrators, academics and the government.. First, we establish the evaluation hierarchical structure by considering a hospital´s uncertain factors and looking at the literature on this topic. Second, we make expert corrections based on the insights from each of the following: hospital administrators, academics and government officials. Finally, we use the analytic hierarchy process to develop an evaluation method for selecting the optimal expansion of the hospital location selection for a regional teaching hospital in Yunlin County, Taiwan. The goal is to find the best way to expand medical services based on our results. The proposed evaluation criteria provide a reference for hospital administrators to select the optimal expansion for their medical services.