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Financing a large-scale picture archival and communication system.
Alberto F Goldszal1, Michael H Bleshman, R Nick Bryan
1Department of Radiology, University of Pennsylvania Health System, Hospital of the University of Pennsylvania, 1-Silverstein, 3400 Spruce St, Philadelphia, PA 19104, USA. Alberto.Goldszal@uphs.upenn.edu
Academic Radiology
|January 30, 2004
Summary
Financing a large-scale Picture Archival and Communication System (PACS) was achieved solely through film savings. This approach covered all digital solution costs and residual film printing, ensuring non-negative cash flow over eight years.
Area of Science:
- Medical Imaging Technology
- Health Informatics
- Financial Management in Healthcare
Background:
- Traditional film-based imaging systems incur significant operational costs.
- Implementing new Picture Archival and Communication Systems (PACS) often faces financial barriers.
- Securing funding for large-scale Picture Archival and Communication Systems (PACS) is a critical challenge.
Purpose of the Study:
- To report on an attempt to finance a multi-hospital Picture Archival and Communication System (PACS) exclusively using savings from existing film operations.
- To demonstrate the feasibility of funding a comprehensive digital imaging solution through traditional imaging cost reductions.
Main Methods:
- A modified Request for Proposal (RFP) detailed technical requirements, Picture Archival and Communication System (PACS) architecture, and performance benchmarks.
- Financial goals were integrated into the RFP, emphasizing the use of film savings for Picture Archival and Communication System (PACS) implementation and operational costs.
- An operating lease agreement was established for an 8-year term, encompassing all Picture Archival and Communication System (PACS) equipment, implementation, service, and support, akin to outsourcing.
Main Results:
- The enterprise-wide Picture Archival and Communication System (PACS) was successfully financed via an operating lease.
- The agreement included equipment refreshes (hardware and software) and transferred operational risks of film printing and implementation delays to the Picture Archival and Communication System (PACS) vendor.
- Financial optimization measures eliminated budget variances during the initial project phase when Picture Archival and Communication System (PACS) costs were higher than film expenses.
Conclusions:
- An enterprise-wide Picture Archival and Communication System (PACS) was adopted, leading to improved clinical workflows and cost savings.
- Picture Archival and Communication System (PACS) financing was solely based on film savings, covering the entire digital solution and residual film printing.
- The project achieved its financial goals, resulting in a non-negative cash flow each year over the 8-year term without budget overruns.