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
- Shared Services Model - Finance and HR remain centralized
- Platform as a Service - Uses enterprise EHR as core platform