ALGOTEC PACS OFFERS RAPID RETURN ON INVESTMENT
Antelope Valley Hospital Reaps Wide Range of Benefits in Digital Conversion

By Alberto Pernudi, Administrative Director of Radiology, Antelope Valley Health Systems

The bottom line on a PACS is really the bottom line.  While digital conversion offers a wide range of benefits, in today’s economic environment, demonstrating return on investment is (ROI) is even more crucial than ever before.

Antelope Valley Hospital (AVH), a major provider of comprehensive health services in Lancaster, CA, is a recognized leader in the utilization of information systems to improve services while containing costs.  Not surprisingly, when selecting our PACS for enterprise-wide image distribution and management, we looked carefully at the cost-benefit equation for every feature.

As a result, we estimate our PACS from Algotec, the international Web-based image management and communications vendor, will pay for itself in less than two years. This is a conservative figure based on savings realized in easily quantifiable hard costs such as film and developing, which have already reduced departmental expenses by 70 percent.  Numerous additional savings, from increased productivity for radiologists and technicians to lower film storage costs, actually accelerate the ROI. 

What’s more, our PACS offers additional benefits such as open architecture that will continue to grow with us as we expand our hospital communications network in the future. 

Our ROI may be faster than the typical PACS installation, but we took concrete steps to ensure this.   First, realizing that PACS is really a software-driven product, we looked for a software-only solution that allowed us to purchase the most essential part directly from the developer.  This allowed us to work with a vendor like Algotec that was far more reasonably priced than the large equipment manufacturers as well as to specify custom-developed features meeting our exact needs. 

  It also allowed us to take advantage of Web technology and use PCs –not expensive proprietary hardware outside of the radiology department, significantly cutting costs. Algotec was the first company to receive FDA approval for Web-based PACS and continues to be a technology leader.

When planning the system, we also were extremely circumspect about accessing needs of all physicians impacted by the move to digital and in specifying a system that would meet these needs from day one. Our radiologists wanted speed, flexibility and full functionality.  This included 3-D capabilities to handle the increasingly complex datasets being produced by our new multidetector CT scanners.  We also surveyed doctors carefully throughout the hospital to ensure that they also would receive images in a form and timeframe appropriate for their use so that we would not have to continue to print film.

To address these issues, we examined systems from a range of vendors, from smaller specialized vendors such as Algotec to large equipment manufacturers.  As Ash Shehatta, Chief Information Officer for AVH, noted: “Algotec proved to be the best of breed across all dimensions, from web-based image distribution to complex 3-D volume rendering.  Their comprehensive workflow solution, in particular, had no rival.”

The IT department also looked carefully at the system interfaces needed now and in the future.   They also examined special functions to ensure that the system could meet these demands as well.

Concurrently with the PACS, we installed an IDX radiology information system and wanted total integration so that either of the two systems could be accessed directly from within the other.  We needed strong teleradiology capabilities to communicate with our consulting radiology group in the Los Angeles area. And we were developing a wireless virtual private network to allow broadband access to the system from outlaying offices and clinics.  Working with software- driven vendor Algotec, we received the advanced technology, experience and the flexible solutions to meet these needs.

After a full range of RFPs and site visits, we made the final decision to work with Algotec, and the company was there every step of the way to ensure smooth installation.   Ash Shehatta notes that: “Working with Algotec, from day one, we began redefining the way medicine is practiced in our enterprise, along with enjoying cost-cutting benefits.” 

Installation began in October 2000, and by May 2001 we went completely filmless. Radiologists particularly liked sophisticated pre-fetching, image display and other robust features.  Physicians throughout the hospital benefited from access to digital images using Algotec’s Web-based Medisurf running on inexpensive standard PCs.

In addition to substantial savings in film and developing costs, the project realized numerous additional financial benefits including the elimination of maintenance costs for wet processing and laser film output, increased throughput of technologists, and economical distribution of images in diagnostic reports to referring physicians both in-house and off-premises.  The later is done over the Internet with Algotec’s Med-e-mail feature. Significantly, new efficiencies in the radiology department streamline diagnosis and result in a reduction in length of patient stay, again a major cost-cutting benefit.

In addition, clerical and scheduling staff now fulfills lower end PACS maintenance functions.  Previously, similar film-based maintenance was handled by more expensive technologists.  The PACS has also proven to be an effective marketing tool by improving communications with referring physicians, boosting the perception of departmental customer service and positioning AVH and Renaissance Imaging Medical Associates as the Valley’s imaging leader.

Given all this, everyone was extremely pleased with the installation and our choice of Algotec, from radiologists to referring physicians to management who had their eyes on the bottom line.