The potential benefits of digital imaging to clinical operations focuses on both quantitative and qualitative improvements. In the future it is postulated that it will totally replace analog imaging, creating the 'filmless' Radiology department. Although this could result in dramatic savings in film costs, realization of this scenario will require continued improvements in the performance and cost of component technologies, acceptance by the medical and legal communities of the reliability of the medium, and changes in the practice and process of radiology. Baltimore VAMC has recently become one of the truly 'filmless' radiology departments through use of a leading commercial Picture Archiving and Communications System (PACS) and DHCP's Digital Imaging System. This document outlines the results of a preliminary assessment of PACS technology as it is installed at Baltimore, and its impact on operations.