As a result of the introduction of PACS the ultrasound division of the hospital experienced a positive variance of Can$41,323 for the first year of operation. No changes in operational costs resulted although revenues increased and film and delivery costs reduced from Can$90,000 to Can$20,000 post-PACS. The cost of optical disks was Can$20,000 and annual service contracts were anticipated to be of the order of Can$50,000. Upgrading costs of 30% of the installation cost were also anticipated. Staff changes and savings in salary as a result were also estimated to be Can$36,000.