Financial Assessment of a Picture Archiving and Communication System Implemented all at Once

The objective of this study was to determine the differential cost between film-based radiology and a hospital-wide picture archiving and communication system (PACS) implemented all at once. The cash flow and running costs of PACS and film-based operation were measured over an 8-year time horizon. When the hospital-wide PACS was implemented over a short period, there was instant conversion into digital film and archives. The net present value (NPV) for PACS operation is US $1,598,698, whereas the NPV for film-based operation is US $2,083,856, indicating a net saving of US $485,157. The payback period is 4 years. The costs of computed radiography and image plates account for 40% of the initial capital expenditure in PACS implementation, followed by computer hardware (30%) and software (9%) costs. Our experience shows that implementation of hospital-wide PACS all at once can produce cost savings. For hospitals intending to go filmless, this study offers a model for financial evaluation of PACS to help in decision making.

[1]  M. Buxton,et al.  The benefits of hospital-wide picture archiving and communication systems: a survey of clinical users of radiology services. , 1999, The British journal of radiology.

[2]  Katherine P. Andriole,et al.  Productivity and Cost Assessment of Computed Radiography, Digital Radiography, and Screen-Film for Outpatient Chest Examinations , 2002, Journal of Digital Imaging.

[3]  S Charvet-Protat,et al.  [Economic and organizational evaluation of an imaging network (PACS)]. , 1998, Journal de radiologie.

[4]  Eliot L Siegel,et al.  Filmless radiology at the Baltimore VA Medical Center: a 9 year retrospective. , 2003, Computerized medical imaging and graphics : the official journal of the Computerized Medical Imaging Society.

[5]  E L Siegel,et al.  Effect of filmless imaging on the utilization of radiologic services. , 2000, Radiology.

[6]  E M van Gennip,et al.  Guidelines for cost-effective implementation of Picture Archiving and Communication Systems. An approach building on practical experiences in three European hospitals. , 1996, International journal of bio-medical computing.

[7]  David E Avrin,et al.  Avoiding unread images with PACS. , 2002, Academic radiology.

[8]  M. Drummond,et al.  Health Care Technology: Effectiveness, Efficiency and Public Policy@@@Methods for the Economic Evaluation of Health Care Programmes , 1988 .

[9]  H L Kundel,et al.  Incremental cost of department-wide implementation of a picture archiving and communication system and computed radiography. , 1998, Radiology.

[10]  E L Siegel,et al.  Effect of film-based versus filmless operation on the productivity of CT technologists. , 1998, Radiology.

[11]  Grazyna Adamiak,et al.  Methods for the economic evaluation of health care programmes, 3rd ed , 2006 .

[12]  G Weatherburn,et al.  Evaluation of a Hospital Picture Archiving and Communication System , 1999, Journal of health services research & policy.

[13]  R. Arenson.  PACS: current status and cost-effectiveness , 2000, European Radiology.

[14]  S. Hartzman,et al.  PACS in private practice--effect on profits and productivity. , 2002, Journal of digital imaging.

[15]  Eliot L Siegel,et al.  Technologists' productivity when using PACS: comparison of film-based versus filmless radiography. , 2002, AJR. American journal of roentgenology.

[16]  Bruce I. Reiner,et al.  SCAR Radiologic Technologist Survey: Analysis of the Impact of Digital Technologies on Productivity , 2002, Journal of Digital Imaging.