In facility layout problems, a major concern is the optimal design or remodeling of the facilities of an organization. The decision maker’s objective is to arrange the facility in an optimal way, so that the interaction among functions (i.e. machines, inventories, persons) and places (i.e. offices, work locations, depots) is efficient. A simple pure-binary LP model is developed and solved for a small hospital, where five functions are to be redesigned to five different locations. The model is rather flexible and can be used, with small modifications, for larger facility layouts.