Objective: As a result of the reform of a comprehensive government hea
lth plan, an integrated imaging system is being created in the provinc
e of Manitoba. The intent of the system is to reduce costs, avoid caus
ing harm to patients, enhance physician referral services and add new
programs. Methods: Evaluation of trends in examinations, equipment, pe
rsonnel, expenditures and policy in the 1992-93 and 1995-96 fiscal yea
rs in Manitoba. Results: The population has remained steady, at 1.1 mi
llion. Hospitals have been amalgamated under new authorities, and Mani
toba's annual health care spending of $1.8 billion has been reduced by
$235 million. Between the 2 years, use of radiography declined from 8
35 748 to 726 394 examinations per year. Use of mammography, ultrasono
graphy, computed tomography, magnetic resonance imaging and nuclear me
dicine increased moderately. The total number of radiologic examinatio
ns declined from 1 069 579 to 975 044. There was little change in equi
pment, but the plant aged as a result of freezes on construction and c
apital spending. Personnel declined by 20 full-time equivalent positio
ns, from 794.3 in 1992-93 to 774.3 in 1995-96. Savings in operations w
ere made as a result of hospital budget restrictions. Total expenditur
es declined from $100 million to $89 million. The income of imaging sp
ecialists did not change because they were paid higher fees for examin
ations involving newer technology. Conclusion: Integration of rural/no
rthern and urban hospital services has followed the plan set out in re
cent legislation. Savings of up to 20% are expected to be realized thr
ough reduction in personnel (saving $1 millionj, group tendering ($1 m
illion), inhouse repair ($1 million), reduction in deployment of equip
ment ($3 million), integration of services ($1 million), indirect cost
reduction ($5 million), practice guidelines ($3.5 million), reduced b
reast screening costs ($1 million), physician payment reform ($1 milli
on) and rigorous clinical/fiscal audit ($1 million).