Flexible telecommunications. An enhanced system can cut costs and generate revenues.

Hospitals can cut costs and even generate new revenues by updating their telecommunications systems. Hospitals with sophisticated systems can cut costs in a number of ways. They can bypass local telephone service, use common carrier services, integrate internal transmission systems, establish private networks, and avail themselves of other specialized, cost-reducing services. A sophisticated system can also enable a hospital to generate revenue by reselling excess long-distance and local service, becoming a common carrier, installing pay telephones, and providing other services. Facilities or systems choosing to develop a large, complex system must, however, address certain legal and managerial issues. Not-for-profit organizations must, for example, determine whether selling services will endanger their tax-exempt status. A number of other legal issues will also arise. In addition, facilities or systems planning a large telecommunications upgrade should assemble a knowledgeable, experienced telecommunications project team early.