Federal and state governments want to decrease payments for medical education, and other payers are trying to restrict payouts to direct and necessary patient care services. Teaching hospitals are increasing tuition and fees, reducing education budgets and, in many instances, closing education programs. Hospital administrators are examining the institutions to find areas where expenditures can be reduced. Allied health education administrators must justify institutional expenses of sponsoring educational programs. A study determined a financial assessment of the sponsorship and administration costs of the Middlesex Hospital radiography program in Middletown, Connecticut. Program components were evaluated by replicating Shock's cost analysis model for hospital education programs. Degree of competency to perform radiographic examinations was determined by computing scores for the average student in terms of completion of clinical objectives and competency examinations for each semester. Information was obtained by reviewing clinical education records of 14 previous students. Study results revealed that the 14 student radiographers enrolled in the program contributed the services of approximately 11.42 full-time equivalent (FTE) employees. The net total education revenue was $209,002. Student radiographers provided a labor component that significantly reduced the cost of providing radiology services. The radiology program was an asset to the Middlesex Hospital. It was recommended that the Middlesex Hospital continue its efforts to support the program. (NLA)