Understanding financing options for PACS implementation

The acquisition of expensive equipment such as picture archiving and commun ication systems (PACS) becomes increasingly difficult as capital budgets be come tighter. Traditional ownership financing options in the form of direct purchase or financing (loan) have several limitations including technology obsolescence, higher fixed pricing, limited options for equipment disposal , and the need to tie up valuable capital. Alternative financing options, i n the form of conventional lease and risk sharing arrangements, offer sever al theoretical advantages including technology obsolescence protection in t he form of built-in upgrades, preservation of borrowing power, multiple end -of-term options, and payment flexibility (which can be directly tied to re alized productivity and operational efficiency gains). These options are di scussed, with emphasis on the acquisition of PACS. Copyright (C) 2000 by W. B. Saunders Company.