Increasing Potential for RIS-driven PACS Modules in Europe, Finds Frost & Sullivan

LONDON, August 24, 2010 - While the penetration of picture archiving and communication systems
(PACS) in European hospitals is 80 per cent, the modern radiology information
system (RIS) that drives PACS has only reached a penetration level of about
41 per cent. Legacy RIS modules ubiquitously dominate the market and many
hospitals are reluctant to install a new RIS due to complications associated
with training a large group of staff as well as concerns over data migration
and security. However, with the third generation of PACS installations,
hospitals have realised the importance of investing in a modern RIS.
Moreover, they are also recognising the need to purchase RIS and PACS from
the same vendor to reduce operational costs.

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New analysis from Frost & Sullivan (www.medicalimaging.frost.com),
European RIS/PACS Market, finds that the market was valued at US$679.4
million in 2009 and estimates this to reach US$1,353.3 million in 2016.

"Expanding regulatory initiatives of DICOM and HL7 will make the
homegrown RIS solution obsolete, thereby boosting RIS installations from
prominent vendors," notes Frost & Sullivan Programme Manager Eramangalath
Sujith. "The new slipstream of advanced PACS installations will require
hospitals to have a modern RIS system that will drive these PACS."

Old RIS modules are unidirectional systems incapable of driving PACS
modules. Unidirectional systems will also lead to unnecessary duplication of
data, thereby adding to the operational cost of hospitals. Modern RIS and
PACS installations will ensure a single-point desktop access to radiology
information and digitised images. This will support enhanced productivity.

The major challenge faced by the RIS/PACS industry is related to people.
Hospital staff have been used to legacy RIS modules that have existed for
more than 20 years. For a long time, hospitals were only concerned with
allocating budgets for PACS installations and making their IT portfolio
complete.

"RIS systems used to cost as much as PACS systems about five to six years
ago," explains Sujith. "European hospitals allocated budgets only for PACS
purchase and not for RIS."

As most RIS and PACS modules are sold separately, hospitals can save
between 10-20 per cent (depending on their preliminary requirements) of the
total price on their initial RIS/PACS installation. An even more important
criterion promoting system adoption is the prospect of reduced operational
cost during the long term.

"Vendors for RIS and PACS modules should justify faster return on
investments to clients through the purchase of both modules as a combined
package," advises Sujith.

If you are interested in more information on Frost & Sullivan's latest
study on the European RIS/PACS Market, please send an e-mail to Katja Feick,
Corporate Communications, at katja.feick@frost.com, with your full name,
company name, title, telephone number, company e-mail address, company
website, city, state and country.

European RIS/PACS Market is part of the Medical Imaging Growth
Partnership Services programme, which also includes research in the following
markets: European Laboratory Information Systems, European C-Arms Market and,
Strategic Outlook into Archive Requirements for Digitised Images in Medical
Imaging. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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    European RIS/PACS Market (M564)

    Contact:
    Katja Feick
    Corporate Communications - Europe
    P: +49(0)69-7703343
    E: katja.feick@frost.com
    www.frost.com
    Twitter: twitter.com/frost_sullivan

Katja Feick of Frost & Sullivan Corporate Communications - Europe, +49(0)69-7703343, katja.feick at frost.com