AHA developed a Practice Costing Model for use by radiology practices, on behalf of RANZCR (Royal Australian and New Zealand College of Radiologists). The model is an MS Excel spreadsheet, menu-driven program which calculates the cost per unit of service under the Commonwealth Medicare Benefits Schedule. The model was trialled by a number of practices with real cost data to identify weaknesses and problems within the model and to also compare the results of the model with other practices. Following their feedback, the model was refined further. The resulting model assists practices in decision making regarding pricing or fees, performing budgeting and cost analyses, forecasting and planning future services, establishing benchmarks for comparison with other providers, and helps to increase the efficiency of the practice.