The benefits and structure of the inhouse service program at the University of Alabama in Birmingham are reviewed. The program, when analyzed and compared to contracted service, realizes a savings of from $190, 000 to $250, 000 per year. Scaling the program to smaller hospitals indicates that inhouse service becomes cost effective when 11/2 million dollars or more of equipment is involved. For remotely located hospitals the cost effective equipment figure may be somewhat less. © 1980 SPIE.