The justification, establishment, and operation of an oncology satellite pharmacy in a 545-bed university teaching hospital are described. The oncology satellite pharmacy was established because of concerns expressed by nurses about the potential health hazards of handling cytotoxic drug products. The satellite pharmacy, which is located near the three floors that serve the majority of the adult and pediatric oncology inpatients, is responsible for preparing all injectable cytotoxic drug products used in the institution; this includes inpatient and outpatient use. The satellite is staffed by one full-time equivalent (FTE) supervisor, two FTE staff pharmacists, and 1.4 FTE technicians. It is open nine hours a day during the week and four hours a day on weekends. Pharmacists working in the satellite prepare all cytotoxic drug products in a laminar-flow biological safety cabinet. The pharmacists also provide clinical services for oncology patients, such as monitoring drug therapy and providing drug information to patients, nurses, and physicians. The implementation of an oncology satellite has allowed this pharmacy department to expand its services and decrease the potential risks to personnel involved in preparing and administering cytotoxic drug products.