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Case study

How a fully managed cloud-native PACS transformed a rural hospital

In this case study, learn how cloud-native technology can unlock efficiency. 

June 2025 | 4-minute read

Cloud-native PACS transform a rural hospital’s IT landscape

Challenges

McKenzie Memorial Hospital, a critical access hospital in Sandusky, Michigan, encountered several challenges with its previous Picture Archive and Communication System (PACS). These challenges included frequent downtimes, slow loading times, limited access to prior studies, usability issues, integration problems with their dictation solution and concerns related to VPN usage vulnerabilities. Operating in a rural community, McKenzie Memorial Hospital is committed to delivering the best possible care through telehealth. Remote radiologists read exams from off-site locations, some as far away as Hawaii, to help ensure precise and timely interpretations of radiology exams. With a limited enterprise imaging staff of 2 full-time employees and 1 part-time employee to serve 13 locations, McKenzie Memorial Hospital needed a solution to use their human resources most effectively.

Virtual private networks (VPNs) provide secure access to the hospital’s PACS and other systems. Although VPNs offer a higher level of security, compromised passwords can pose risks. Moreover, VPNs tend to be slower than cloud-based solutions and require additional login steps and software to access studies.

Jay Smith, Director of Diagnostic and Cardiopulmonary Imaging at McKenzie, recognized the radiologists’ desire for flexibility. “Radiologists wanted to be liberated from their primary workstations. They wanted the flexibility to read studies from anywhere and have immediate access to medical images,” Smith said.

Given the limited local access to medical professionals and specialists, the hospital established the McKenzie Telehealth Clinic. This clinic aims to eliminate traditional in-person consultations by employing highly trained staff who guide patients through virtual consultations using robotic devices and an advanced electronic medical record system. Often, patients are referred to other physicians, and specialists and must provide copies of their images. While the clinic and other remote initiatives are strategic priorities, the organization faced challenges with limited IT staff to support these new endeavors. As a rural hospital, McKenzie Memorial Hospital experiences a scarcity of information technology staffing resources. This necessitates their deployment to the highest priority projects, particularly in supporting telehealth solutions.

Solution

With limited dedicated enterprise imaging IT personnel to support multiple locations and growing technology needs, McKenzie needed a solution that would help ensure the smooth operation and maintenance of the hospital’s infrastructure while freeing resources for strategic priorities. They embarked on a search and ultimately decided to adopt the cloud-native Change Healthcare Stratus Imaging PACS (Stratus Imaging PACS) and Change Healthcare Stratus Imaging Share (Stratus Imaging Share) to enhance their radiology services’ quality, speed and security. According to Jay Smith, McKenzie chose Stratus Imaging PACS because it was “easy to use it and it has all the functionality they need for measurements and image manipulation and more.”

Implementation

The new cloud-native PACS system was implemented efficiently and seamlessly, with minimal disruption to daily operations. Radiologists swiftly adapted to the system with little required training due to an intuitive, modern user interface and easy-to-use application. Each workstation only required 15–30 minutes to update, and the conversion process was completed within 2 weeks. Transitioning to the cloud PACS eliminated system downtimes due to software updates — which now take place automatically without McKenzie IT intervention. Smith expressed his satisfaction with the experience, stating, “My experience with Optum was a refreshing and welcome surprise compared to other vendors. The implementation went much faster than previous projects, and their guidance was incredibly detailed. They provided comprehensive explanations and support throughout the setup process. The Optum team’s dedication far exceeded my expectations.” The radiologists found the system simple and intuitive to use, and the online training materials easy to comprehend.

Improved efficiency

Stratus Imaging PACS has remarkably enhanced the hospital’s operational efficiency. The new system has helped improve staff and provider efficiency by eliminating PACS downtimes for software updates and the extra login to a VPN. Radiologists are now reading from a cloud-native PACS and can start viewing their first image within 3.15 seconds1 on average. Stratus Imaging Share is also saving the McKenzie staff time by reducing the frequency of CD burning. “With Stratus Imaging Share, when a patient requests their electronic medical records, the staff can easily provide it quickly and easily, without the labor and expense of burning CDs. Moreover, it eliminates the potential risk associated with patients losing their medical information stored on CDs,” said Smith.

With Stratus Imaging Share, patients who want access to their medical records can hit a share button from the patient portal to share their studies.Stratus Imaging PACS has remarkably enhanced the hospital’s operational efficiency. The new system has helped improve staff and provider efficiency by eliminating PACS downtimes for software updates and the extra login to a VPN. Radiologists are now reading from a cloud-native PACS and can start viewing their first image within 3.15 seconds1 on average. Stratus Imaging Share is also saving the McKenzie staff time by reducing the frequency of CD burning. “With Stratus Imaging Share, when a patient requests their electronic medical records, the staff can easily provide it quickly and easily, without the labor and expense of burning CDs. Moreover, it eliminates the potential risk associated with patients losing their medical information stored on CDs,” said Smith.

With Stratus Imaging Share, patients who want access to their medical records can hit a share button from the patient portal to share their studies.


Security enhanced

McKenzie helped enhance their security with a third-party certified system for both the hosting provider and the software. They were also able to mitigate risks associated with a VPN. “Our goal was to minimize the security risks associated with VPN usage to protect the hospital and its patients,” noted Smith. “While VPNs are generally secure, they may not offer the highest level of protection.

The potential for a breach, especially if an attacker gains access through compromised usernames and passwords, was a key concern,” said Smith. “I sleep a little better at night knowing that our data and sensitive information are better shielded from threats.”


Staff freed to focus on strategic initiatives

One of the most significant benefits of moving to Stratus Imaging PACS was time saved from having fully managed services. With PACS, Optum assumed responsibility for managing and monitoring, maintenance, security and updates. McKenzie was able to delegate PACS management and hosting, enabling them to get radiologists and cardiologists set up quickly, freeing the IT team to focus on other critical telehealth projects and initiatives.


Summary

The fully managed, natively built Stratus Imaging PACS system has significantly benefited McKenzie Memorial Hospital, radiologists and patients. The system has resulted in:

  • Improved workflow efficiency
  • Reduced IT support requirements
  • Enhanced security measures
  • Time and cost savings
  • Expanded mobile capabilities
  • Facilitated convenient study sharing

Through its partnership with Optum, the hospital has gained access to a dedicated team of IT PACS professionals who have optimized the system’s performance and security. Stratus Imaging PACS has helped the hospital refocus their limited IT resources on strategic initiatives aligned with their goals and objectives. The scalable nature of the system has also enabled the hospital to accommodate evolving needs and make necessary adjustments as their initiatives expand.

Streamlined operations have improved efficiency and cost savings by minimizing potential downtime. The positive experiences and ease of use of the system have made McKenzie Memorial Hospital a model for other facilities looking to enhance remote health care delivery.

1. Average time-to-first-image measured from September 1, 2022–June 10, 2023.

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