This paper discusses the problem of determining locations for public health-care facilities and allocating patients to the public facilities with the objective of minimizing the total construction cost. The public health-care facilities have two types of facilities: public hospitals and health centers. The public hospital provides both hospital services and homecare services, while the health center provides only homecare service. We present an integer programming formulation for the problem, and develop two types of heuristics, based on priority rules and approximate mathematical formulation. Results of a series of computational experiments on a number of problem instances show that the algorithms give good solutions in a reasonable computation time.