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Why Does a Cheaper Radiology System Cost More Later?

7 min read

A lower-cost radiology information system (RIS) often ends up costing more over time. The upfront price looks smaller. But the real cost shows up later. It shows up in the hours staff spend working around gaps. It shows up in the extra tools bought to patch what the system cannot do. And it shows up in the cost of migrating everything again once the practice outgrows it. For a new or growing radiology practice in Australia or New Zealand, the entry price on day one is only part of the decision.

This matters most for practices choosing their first system with the intention to grow. A system that suits a single-site clinic today may not suit that same clinic in three years. Switching later is rarely simple or cheap.

The upfront price is not the whole cost

When practices compare radiology information systems, the quote at the top of the page is easy to compare. What is harder to compare, and easy to underestimate, is what happens after go-live.

A system that is missing a workflow, Medicare integration, or lacks customisation moves the cost to time lost for reception and billing staff, and that adds up significantly over time. Those staff build manual steps around the technology gap. This means the true cost of a system includes the hours it takes to keep the practice running each day, not just the licence fee.

Practices considering entry-level systems alongside Kestral’s Karisma RIS are usually working through exactly this trade-off. Each of these systems is capable of running a radiology practice. The question worth asking before signing is not only what a system costs now. It is what that system will cost to run, and to leave, in three years.

Why the cost of switching grows with your data

Data migration cost is tied directly to how much data exists at the time of the move. A practice with two years of patient records, reports, and billing history faces a smaller, cheaper migration than the same practice five years later, once that volume has doubled.

This is one of the more counterintuitive parts of choosing a RIS. The cheaper system today can become the more expensive system to leave tomorrow. That is because the amount of data needing to move only grows. A migration that takes a few weeks and a modest budget in year one can become a multi-month project with a much larger price tag in year five. The difference comes down to how much history there is to carry across cleanly.

For a practice planning to grow, whether by adding sites, modalities, or referring doctors, this is worth factoring in at the start. Choosing a system built to scale reduces the chance of a large, disruptive migration later.

For more on Why Radiology Practices Outgrow Basic Radiology Systems see Will Your Radiology Information System Still Serve Your Practice in Five Years? – Kestral Computing

How tool sprawl adds cost and reduces reliability

A common pattern with entry-level RIS systems is that they solve the immediate problem but leave gaps elsewhere. As those gaps appear, practices add tools to cover them. A separate billing add-on here. A third-party scheduling tool there. A workaround for report delivery somewhere else.

Each additional tool solves one problem and creates two new ones. It is another system to pay for. It is another login to manage. What starts as a lean, low-cost setup slowly becomes a stack of loosely connected tools. Staff end up holding it together, remembering which system needs updating first when something changes.

This also raises the risk of billing errors. When patient, scheduling, and billing data live across multiple systems instead of one, small inconsistencies between them are far more likely. They are also far harder to catch before a claim goes out. A single, well-integrated system reduces this risk, simply because the data only exists in one place.

Why Medicare billing gaps are a hidden cost

Many entry-level radiology systems handle billing outside the core platform through separate third-party tools. This becomes a cost the moment Medicare rules change.

When a schedule update lands, a practice running billing outside the core system depends on that separate tool being updated in step. If it lags, claims get submitted against the wrong item numbers, and a rejected claim means rework and delayed payment. A practice running billing natively inside its RIS avoids that dependency, since rule updates apply where billing happens.

This is not a hypothetical risk. Panorama Radiology ran into this problem directly before moving to Karisma, needing a separate third-party program just to process Medicare payments and resubmissions alongside their existing RIS. That extra layer added time and errors to something that should have been straightforward.

Compliance obligations do not stand still either. Government requirements around how practices share information, including My Health Record and Medicare’s Assignment of Benefit rules, keep shifting. A RIS that keeps pace with billing rule changes should keep pace with these too, rather than leaving the practice to manage each change on its own.

Configuration that stays in the practice’s hands

Some systems require a vendor call-out for anything beyond default settings, whether that is adding a new funding body, adjusting a fee schedule, or setting up a new site. Others go further still, offering no configuration at all, so the practice uses it exactly as supplied and works around whatever does not fit. Practices considering a RIS should check who holds control of configuration day to day.

A system where staff can manage this internally removes another layer of hidden cost and delay. Karisma trains practice staff as key users, so they become the subject matter experts who can develop and adjust configuration as the practice’s needs change, not just at go-live.

What a system built to scale actually looks like

A radiology information system that is genuinely built for growth, rather than simply cheaper to start with, tends to share four qualities.

Power.

The system handles the full complexity of a growing radiology practice natively. This includes multi-site scheduling, Medicare and ACC billing rules, and reporting workflows, without needing bolt-on tools to fill gaps.

Flexibility.

It adapts as the practice adds sites, modalities, or referring relationships. It does this with ease, replicating the workflows that work for the practice; configuration stays in the practice’s hands. A rule change for one funding body should not put billing at risk for another, which matters as the practice adds payers as well as sites.

Stability.

Data, billing, and reporting stay accurate and consistent as volume grows. That is because the system was designed for that volume, rather than stretched to reach it.

Support.

When something needs attention, there is a single, accountable support line. Practices are not left chasing several vendors across different parts of the stack.

Karisma is built around these four qualities for a specific reason. Kestral has worked with Australian and New Zealand radiology practices since 1989. In that time, Kestral has also seen what breaks when the underlying system was not designed to grow with them.

For more on Kestral’s training and support model see Frequently Asked Questions: Karisma Training and Support – Kestral Computing

For more on RIS configurability see Why Does a Configurable RIS Matter in Optimising how your Radiology Practice Operates? – Kestral Computing

How to evaluate total cost of ownership before you buy

Before choosing a radiology information system, it is worth asking a few direct questions of any vendor, including Kestral.

What does this system cost to run day to day, not just to license?

What happens to cost and effort if our patient volume doubles?

How many separate tools will we need to run the practice fully?

What would it cost, in time and money, to move our data off this system in three years?

A vendor that can answer these clearly, with specifics rather than reassurance, is usually one that has thought seriously about what happens after go-live.

The bottom line

Choosing a radiology information system on entry price alone can be an expensive decision in disguise. The real cost includes staff hours spent working around gaps. It includes the tools added to patch those gaps. It includes the billing errors that come from disconnected systems. And it includes the cost of eventually migrating away from a system that has been outgrown. For practices in Australia and New Zealand planning to grow, it is worth choosing a system built for that growth from the outset, rather than paying for it twice.

Frequently Asked Questions

Is it cheaper to start with a lower-cost radiology information system?

It can be cheaper upfront, but not necessarily cheaper overall. Lower-cost systems often need extra tools to cover gaps in billing, scheduling, or reporting. Each added tool brings its own cost and reliability risk. The full picture only becomes clear once staff hours, add-on tools, and eventual migration are counted alongside the initial price.

What does data migration cost as a radiology practice grows?

Data migration cost is tied to data volume, so it grows the longer a practice waits to move systems. A migration in year one, with a smaller volume of records, is typically faster and less expensive. The same migration in year five, once patient history, reports, and billing data have multiplied, costs considerably more.

Why do radiology practices end up with multiple disconnected tools?

This usually happens when the core RIS cannot fully support a growing practice’s billing, scheduling, or reporting needs. Rather than replacing the system, practices add separate tools to cover each gap. Over time, this creates a stack of loosely connected systems. It is harder to manage and more prone to billing errors than a single integrated platform.

What happens to Medicare billing when it sits outside the core RIS?

When billing runs separately from the RIS, a Medicare schedule update has to be applied to two systems instead of one. If the billing tool lags behind a rule change, claims can be submitted with the wrong item numbers, leading to rejections and delayed payment. Systems with billing built in apply schedule updates directly, so this risk does not arise in the first place.

Who controls configuration changes on a RIS?

This varies by vendor. Some systems require the vendor to make configuration changes, such as adding a funding body or adjusting a fee schedule, which means waiting on a support queue. Others let practice staff manage these changes directly. Confirming who holds this control before signing avoids delays later.

What should a growing radiology practice look for in a RIS?

A system built for growth should offer power, flexibility, stability, and support. It handles the practice’s full complexity natively. It adapts as the practice adds sites or modalities. It keeps data and billing consistent as volume increases. And it provides a single accountable point of support.

How does Karisma support radiology practices as they scale?

Karisma is designed to handle multi-site scheduling, Medicare and ACC billing, and reporting workflows natively, without requiring additional bolt-on tools. Kestral has supported Australian and New Zealand radiology practices since 1989, including practices that have grown from a single site to multi-site operations on the same platform.