Image processing is used in every sector of life. The development of medical field is entirely contingent on image processing algorithms. Radiologists utilize these algorithms for detection of diseases such as tumors. These algorithms are designed using proprietary tools which enhance the cost of disease detection. In this paper, various open source toolkits for medical image processing such as ITK, VTK, VV, 3D Slicer, Bioi mage XD are explored. We have also performed various image processing operations such as inversion, enhancement and segmentation using these toolkits. These toolkits provide a cost effective solution to healthcare industry.