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    Cancer Treatment Centers of America (A)

    Herzlinger, Regina E. ; Kindred, Natalie

    • Reference: HBS-313012-E

    • Number of pages: 30

    • Geographic Setting: United States

    • Publication Date: Aug 20, 2012

    • Fecha de edición: Aug 7, 2014

    • Source: HBSP (USA)

    • Type of Document: Case

    • Industry Setting: Apparel accessories;Health care services

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    Description

    Cancer Treatment Centers of America (CTCA), a U.S. network of four privately owned oncology focused factory hospitals, was weighing options for growth. CTCA was entirely cancer focused and specialized in treating patients with complex and advanced-stage cancers, who were reached through advertising its integrative, team-based approach to care. CEO Stephen Bonner needed to decide whether to focus future expansion on building additional full-scale hospitals or pursuing a hub-and-spoke model, in which numerous oncology outpatient centers would be built in the region of each CTCA hospital. His decision would be made in the context of CTCA's unique business model and treatment philosophy and the public policy landscape, including certificate-of-need laws and the advent of Accountable Care Organizations (ACOs) and bundled payments. CTCA's for-profit status and direct-to-consumer advertising made it a target, he knew.

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    Keywords

    Advertising Affirmative action Agile software development Business Models Collaborative innovation Core purpose Decision making Expansion Fair treatment Foreign investment theory Health care Incubators Innovation Inventions Mission statements Net profit Patents Private companies Public health