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By using digital archiving, two-year-old medical imaging firm TeraMedica Inc. is aiming to solve a problem every healthcare organization has: storing vast amounts of film generated from medical images.

It's a big problem, the company says. U.S. healthcare providers perform more than 350 million diagnostic-imaging procedures a year, including CT scans, cardiology images, MRIs, and ultrasounds, among many other kinds of X-rays and scans.

The Milwaukee-based startup wants to replace all these pieces of film with computer images that can be stored on disk. By digitally archiving these images, a healthcare organization can cut its costs by up to 60 percent, TeraMedica says, because they won't have to buy, handle, or store film anymore.

"The rapid retrieval of medical records is an important factor in the quality of patient care," says Bill Burns, TeraMedica's VP of marketing and sales. "Medical image management is becoming a mission-critical application in hospitals."

In order to round out its offering, TeraMedica has partnered with Sun Microsystems Inc. (Nasdaq: SUNW) to integrate Sun's shared file system, QFS, and archival system software, SAM-FS, into its software for the storage management piece of the pie.

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