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    <abstract>The principal aim of health care research at IIASA has been to develop a family of submodels of national health care systems for use by health service planners. The modeling work is proceeding along the lines proposed in the Institute&apos;s current Research Plan. It involves the construction of linked submodels dealing with population, disease prevalence, resource need, resource allocation, and resource supply. 

This is the second research report on the disaggregated resource allocation sub-model called DRAM. It describes the extension of the Mark 1 version (RR-78-8) to include the distribution of many resources across different modes of care. The earlier assumption that all available resources must be used has been relaxed, and an extensive analytic treatment suggests various methods for estimating the submodel&apos;s parameters. Several case studies that use the model are in progress and reports on these applications will be forthcoming. 

This paper is an output of a collaboration between two Areas at IIASA. It describes how a health resource allocation model, developed in the Health Care Systems Task of the Human Settlements and Services Area, may be solved by using optimization techniques studied in the Optimization Task of the Systems and Decision Sciences Area.</abstract>
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