A Center of Excellence is a concentrated program that brings specialized clinical teams, pharmacy, diagnostics, operations, governance, and financial processes together for complex care. The exact designation and requirements vary by health system and therapy.
Hospital Readiness for High-Cost Therapies: Where Operational Risk Builds
A health-system executive view of how novel, high-cost therapies reshape working capital, payer onboarding, specialty staffing, safety-monitoring logistics, formulary governance, site-of-care strategy, and the infrastructure needed to scale access without exposing the organization to unmanaged financial or operational risk.
Audience: Hospital Administrators
Countries: 3
Completion Rate: 80%
SGID: 8951420
-Hero findings
– Quick Read — Key Findings
31.3%
Use a dedicated novel-therapeutics committee
A nearly equal alternative to centralized C-suite governance is an interdisciplinary Precision Medicine and Novel Therapeutics committee.
37.5%
Reserve fast-track diagnostic slots
Dedicated imaging or diagnostic capacity is the most selected way to protect mandatory safety-monitoring schedules.
25.0%
See coverage narrower than the approved label
Payer-specific eligibility rules create the same level of onboarding friction as prolonged prior authorization review cycles.
31.3%
Prioritize EHR and revenue-cycle automation
Clinical decision support and RCM tools for prior authorization rank second among future system investments.
18.8%
Plan to expand hospital-owned infusion hubs
Regional outpatient infusion growth ties with community partnerships as the second-most selected site-of-care strategy.
12.5%
Keep home infusion as a selective strategy
Hospital-at-Home or home infusion for maintenance dosing is the least-selected growth pathway in the survey.
When a therapy costs millions upfront, who carries the risk before reimbursement?
A therapy can be ready while the health system around it is not
For hospital executives, the launch of a high-cost therapy is not a single formulary decision. It is a chain of capital, contracting, pharmacy, staffing, diagnostics, scheduling, revenue-cycle, and site-of-care decisions that must hold together before the first patient is treated.
That complexity is increasingly visible in policy and practice: CMS’s Cell and Gene Therapy Access Model is testing outcomes-based agreements for sickle cell gene therapies and requires participating Medicaid programs to make operational and reimbursement changes that support access, and ASHP policy places supply chain, operational oversight, formulary governance, financial risk, and payment models inside the health-system medication-use process. The MDForLives survey asks administrators and executives where this operating model strains first, and the strongest signals are not concentrated in one department, they span upfront payer guarantees, reimbursement economics, specialized nursing, diagnostic scheduling, executive governance, centralization of complex care, and specialized pharmacy infrastructure.
Half of executives will not acquire the therapy until coverage is locked down
50.0% say their primary financial strategy is strict upfront payer prior authorization and guaranteed coverage terms before drug acquisition.
White or clear bagging is chosen by 25.0%, traditional buy-and-bill supported by hospital reserves by 18.8%, and manufacturer risk-sharing by only 6.3%, so the dominant move is to reduce uncertainty before cash leaves the system. The open-ended comments sharpen it: executives fear buying million-dollar therapies upfront while reimbursement stays unsettled, delayed, or exposed to denials, which turns authorization from an access workflow into a treasury control.
Even with coverage, reimbursement economics can make the therapy unsustainable
37.5% identify low reimbursement rates or ASP markups that fail to cover pharmacy handling, compounding, and administrative overhead as their most severe onboarding friction.
Prior authorization cycles and coverage criteria narrower than the label are each 25.0%, and site-of-care restrictions 12.5%, so the burden is not one bottleneck but a sequence of verification, eligibility, authorization, reimbursement, and site rules. Policy is targeting the same seam: CMS’s 2024 interoperability and prior authorization rule began operational requirements in 2026, and an April 2026 proposal would extend electronic prior authorization to drugs, showing how actively the drug-authorization workflow is being standardized.
The biggest capacity constraint is the workforce, not the infusion chair
56.3% identify shortages of specialized nursing staff qualified for complex monitoring and administration as the single greatest throughput constraint.
Diagnostic and laboratory capacity follows at 18.8%, with infusion chair availability and specialized pharmacy capacity each at 12.5%, which reframes expansion planning: adding physical space without the clinicians to run the service may not add usable capacity. The future-investment question echoes it, 25.0% prioritize recruiting and retaining specialty nurses, pharmacists, and advanced-practice clinicians, so complex-therapy capacity is partly a labor-market problem and partly a workflow-design problem.
Mandatory monitoring creates a second scheduling pathway as critical as the treatment slot
37.5% reserve dedicated fast-track diagnostic or imaging slots specifically for specialty-therapy patients.
A quarter rely on standard central scheduling despite delays, while 18.8% partner with off-site ambulatory centers and 18.8% use automated EHR pathways to book clinic, infusion, and diagnostics together. The issue is sequencing: a therapy may require treatment, imaging, labs, toxicity checks, and follow-up within defined windows, so if those sit in disconnected queues, a patient can be clinically eligible yet operationally unable to complete the pathway on time.
Health systems are centralizing both the decision and the delivery model
37.5% use a centralized executive panel for formulary governance, while 50.0% prioritize a main-campus Center of Excellence for future site-of-care growth.
A dedicated Precision Medicine and Novel Therapeutics committee sits close behind centralized executive governance at 31.3%, with service-line governance at 18.8% and ad-hoc planning 12.5%; on site of care, hospital-owned ambulatory infusion and community partnerships are each 18.8% and home infusion 12.5%. Together the two questions show a preference for concentration where complexity is highest: a centralized body can weigh enterprise risk, and a Center of Excellence can pool pharmacy, staffing, diagnostics, safety pathways, and financial expertise in one model.
Executives want infrastructure to make the therapy deliverable, billable, and visible
37.5% rank specialized pharmacy, cold-chain, and point-of-care manufacturing infrastructure as the most critical investment for scaling novel therapeutics safely.
Automated EHR decision support and revenue-cycle tools for prior authorization follow at 31.3%, specialized clinical talent at 25.0%, and upgraded diagnostics at 6.3%, so the priorities span product handling, digital authorization, workforce, and diagnostic support. The open-ended comments repeat the same themes, reimbursement uncertainty, denials, upfront cash exposure, staffing and scheduling, contract complexity, and site-of-care or DRG mismatches, with a smaller set citing budget limits, prescribing discipline, and life-cycle contracts.
High-cost therapy readiness is becoming an enterprise risk-management discipline
The strongest signals sit at the interfaces between departments: finance wants coverage certainty before acquisition, revenue-cycle teams face prior authorization, narrow criteria, reimbursement gaps, and site-of-care rules, clinical operations are constrained by specialized nurses and tightly timed diagnostics, pharmacy needs infrastructure for high-cost handling, and leadership must decide who owns formulary risk and where therapies are delivered.
The survey also shows why a narrow fix is not enough: a new EHR workflow cannot solve inadequate reimbursement, more infusion chairs cannot solve a nursing shortage, and a Center of Excellence cannot scale if the payer model still exposes the hospital to unrecoverable acquisition cost. The more complex the therapy, the more readiness depends on synchronizing financial, clinical, pharmacy, diagnostic, and operational capacity before demand arrives.
Endocrinology, Diabetes & Metabolism
7Oncology & Hematology
7Hospital Administration
6Primary Care & Family Medicine
6Dermatology
6Ophthalmology
6Gastroenterology & Hepatology
6Dentistry & Oral Health
5Surgery & Procedural Care
5Pharmacy
5Pediatrics
5Neurology
5Nurses, NPs & Physician Assistants
4
Cardiology
4Radiology & Imaging
3Laboratory & Diagnostics
3Optometry & Optical Care
3Diabetes, Weight & Metabolic Health
3Cancer Care
1Skin & Aesthetic Care
1Social Work & Patient Support
1
You have read the summary
The findings go deeper.
So can your participation.
Frequently asked questions
Direct answers to common questions around this topic.
What are the main financial risks to hospitals offering high-cost therapies?
Key risks can include large upfront acquisition costs, uncertain or delayed reimbursement, payer denials, contract complexity, site-of-care restrictions, and mismatches between the cost of delivering therapy and the payment received.
How do hospitals manage working capital for cell and gene therapies?
Health systems may use strict coverage verification before acquisition, payer contracts, manufacturer arrangements, specialty-pharmacy models, dedicated financial review, or other risk controls. The right approach depends on the therapy, payer mix, reimbursement model, and local regulation.
Why can prior authorization delay access to high-cost specialty therapies?
High-cost therapies often require detailed eligibility, documentation, medical-necessity review, benefit verification, and payer-specific criteria. When requirements differ by payer or change after approval, administrative work can delay treatment even after a clinical decision is made.
What infrastructure is needed to deliver complex cell and gene therapies?
Needs vary by therapy but can include specialized pharmacy and cold-chain capability, trained nursing and pharmacy staff, infusion capacity, diagnostic and laboratory access, emergency and toxicity-management pathways, scheduling coordination, and robust financial and data systems.
What is a Center of Excellence for complex therapies?
How can health systems scale novel therapies safely across a network?
Scaling usually requires clear governance, standardized patient selection and authorization workflows, defined sites of care, trained staff, reliable pharmacy and diagnostic capacity, financial risk controls, and data systems that coordinate treatment and monitoring across teams.
Direct answers to the questions healthcare professionals are most likely to ask about these findings.
Related Reports


Hospital Patient Experience: Where the Care Journey Still Breaks Down
