Regional Cancer Center Model

Regional Cancer Center Model

Context

A 5-hospital health system wanted to create a destination cancer program while maintaining local service delivery in smaller markets.

Pattern Applied

Service Line Autonomy - The cancer center operates with significant autonomy over clinical protocols, treatment options, and staffing while maintaining alignment with the system’s quality and financial targets.

Implementation

  • Governance: Cancer center director reports directly to COO with quarterly strategic reviews
  • Staffing: Local decision-making on medical staff credentialing and hiring
  • Operations: Daily operational decisions made locally; major capital and strategy decisions reviewed at system level
  • Revenue Model: Service line P&L accountability with shared savings on certain network services

Results

  • 40% increase in tertiary cancer referrals within 18 months
  • 15% improvement in operational margin despite increased staffing investment
  • 92% physician satisfaction with autonomy model
  • Reduced decision cycle time from 6 weeks to 3 weeks

Lessons Learned

  • Clear financial metrics and accountability are essential
  • Regular communication prevents “drift” between center and system strategy
  • Shared governance forums help other service lines learn from the cancer center’s innovations

Related Patterns