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.
Similar content being viewed by others
References
BI Reiner EL Siegel FJ Hooper D Glasser (1998) ArticleTitleEffect of film-based versus filmless operation on the productivity of CT technologists Radiology 207 481–485 Occurrence Handle9577498 Occurrence Handle1:STN:280:DyaK1c3jvVemuw%3D%3D
BI Reiner EL Siegel JA Carrino MM Goldburgh (2002) ArticleTitleSCAR Radiologic Technologist Survey: Analysis of the impact of digital technologies on productivity J Digit Imaging 15 132–140 Occurrence Handle12481227 Occurrence Handle10.1007/s10278-002-0021-8
L Chan M Trambert A Kywi Hartzman (2002) ArticleTitlePACS in private practice—effect on profits and productivity J Digit Imaging 15 IssueIDsuppl 1 131–136 Occurrence Handle12105713 Occurrence Handle10.1007/s10278-002-5019-8
KP Andriole (2002) ArticleTitleProductivity and cost assessment of computed radiography, digital radiography, and screen-film for outpatient chest examinations J Digit Imaging 15 161–169 Occurrence Handle12532253 Occurrence Handle10.1007/s10278-002-0026-3
BI Reiner EL Siegel (2002) ArticleTitleTechnologists’ productivity when using PACS: comparison of film-based versus filmless radiography AJR Am J Roentgenol 179 33–37 Occurrence Handle12076899
EP Tamm B Raval OC West S Dinwiddie R Holmes (1999) ArticleTitleEvaluating the impact of workstation usage on radiology report times in the initial 6 months following installation J Digit Imaging 12 IssueIDsuppl 1 152–154 Occurrence Handle10342197 Occurrence Handle1:STN:280:DyaK1M3ntlOnsQ%3D%3D Occurrence Handle10.1007/BF03168786
S Bryan GC Weatherburn JR Watkins MJ Buxton (1999) ArticleTitleThe benefits of hospital-wide picture archiving and communication systems: a survey of clinical users of radiology services Br J Radiol 72 469–478 Occurrence Handle10505012 Occurrence Handle1:STN:280:DyaK1MvjsVKgtA%3D%3D
EL Siegel BI Reiner (2003) ArticleTitleFilmless radiology at the Baltimore VA Medical Center: a 9 year retrospective Comput Med Imaging Graph 27 101–109 Occurrence Handle12620300 Occurrence Handle10.1016/S0895-6111(02)00083-6
S Charvet-Protat F Thoral (1998) ArticleTitleEconomic and organizational evaluation of an imaging network (PACS) (in French) J Radiol 79 1453–1459 Occurrence Handle9921447 Occurrence Handle1:STN:280:DyaK1M7itVSitw%3D%3D
HM Pratt CP Langlotz ER Feingold JS Schwartz HL Kundel (1998) ArticleTitleIncremental cost of department-wide implementation of a picture archiving and communication system and computed radiography Radiology 206 245–252 Occurrence Handle9423679 Occurrence Handle1:STN:280:DyaK1c%2FosFOgtQ%3D%3D
S Bryan G Weatherburn M Buxton J Watkins J Keen N Muris (1999) ArticleTitleEvaluation of a hospital picture archiving and communication system J Health Serv Res Policy 4 204–209 Occurrence Handle10623035 Occurrence Handle1:STN:280:DC%2BD3M%2FgtVKqtA%3D%3D
RL Arenson (2000) ArticleTitlePACS: current status and cost-effectiveness Eur Radiol 10 S354–S356 Occurrence Handle11001444 Occurrence Handle10.1007/PL00014092
MR Drummond BJ O’Brien GL Stoddart GW Torrance (2005) Methods for the Economic Evaluation of Health Care Programmes EditionNumber3rd ed. Oxford University Press Oxford 55–101
DE Avrin RL Arenson (2002) ArticleTitleAvoiding unread images with PACS Acad Radiol 9 1331–1332 Occurrence Handle12449366 Occurrence Handle10.1016/S1076-6332(03)80567-6
BI Reiner EL Siegel C Flagle FJ Hooper RE Cox M Scanlon (2000) ArticleTitleEffect of filmless imaging on the utilization of radiologic services Radiology 215 163–167 Occurrence Handle10751482 Occurrence Handle1:STN:280:DC%2BD3c3hslWrtA%3D%3D
V Gennip J Enning F Fischer KJ Glaser M Kilbinger (1996) ArticleTitleGuidelines for cost-effective implementation of picture archiving and communication systems: an approach building on practical experiences in three European hospitals Int J Biomed Comput 43 161–178 Occurrence Handle9032006 Occurrence Handle10.1016/S0020-7101(96)01201-9
Acknowledgment
I thank Professor Hsin-Ginn Hwang for his encouragement and advice regarding the content of this paper. I am grateful to Dr. Ta-Yi Huang and Mr. Tsair-Jin Perng for help in PACS design and process reorganization. Thanks also to Dr. Ran-Chou Chen and Dr. Adeline Woan-Chwen Jaw for suggestions about assumptions.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Fang, YC., Yang, MC. & Hsueh, YS. Financial Assessment of a Picture Archiving and Communication System Implemented all at Once. J Digit Imaging 19 (Suppl 1), 44–51 (2006). https://doi.org/10.1007/s10278-006-0632-6
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10278-006-0632-6