Building vs. Buying Laboratory Information Systems (LIS): Dispelling Some Common Myths

Why don’t we build a laboratory information system (LIS) rather than buy LIS software from an established, commercial  LIS company? After all, we can tailor the medical LIS to meet all our lab’s specific, unique needs, and we can support it and make necessary changes with our in-house IT staff. Moreover, the laboratory information system software will be much less expensive, and we can also license it to other medical labs to generate revenue.

Sounds great, right? So what’s wrong with this scenario?

In short, it’s a common myth rather than reality because while building a lab information system from scratch seems cost-effective initially, hidden costs like ongoing maintenance, regulatory compliance, security updates, and scalability can make it much more expensive in the long run than laboratory information systems offered by established LIS software vendors. 

This is the first of several build-vs-buy myths I plan to clear up so lab directors and managers can make informed decisions about pathology lab management software that truly supports their organizations.

Discover More: Pathology Lab Management 2025 Guide - Best Laboratory Information System Software and Practices

Building vs. Buying: Laboratory Information System Functions 

Some lab directors and managers still believe they can build and tailor a homegrown laboratory information system to meet all lab-specific, unique needs, and that this can be sustained long-term.

While this was more or less true many years ago when commercially available LIS systems were limited in scope and complexity, thereby justifying specialized labs building their own LIS software, that’s no longer the case today. 

Commercial laboratory information systems have become broader in scope and functionality, and virtually every lab operation that once had a homegrown medical LIS has since replaced it with a vendor-produced LIS lab solution. 

Today, the best laboratory information system software offers labs considerable flexibility for configuring specific clinical lab workflows. Usually, the “unique” needs are few and can be accommodated by a handful of “specialized” programs or parameterizations.

Discover More: Leveraging LigoLab for Optimal Return on Investment - An LIS System Guide for Lab Directors

Building vs. Buying: Laboratory Information System Support

The thought that a lab’s in-house IT staff can support and manage the homegrown medical laboratory information system is another myth that needs to be dispelled.

While this presumption might be true for a while, assuming the in-house healthcare LIS is very well documented (rarely the case) and the lab’s key IT staff won’t “jump ship” for another job, leaving the lab without critical LIS system support, it ultimately is a flawed premise.

Should knowledgeable IT and LIS system staffers leave, finding replacements who can understand the diagnostic lab software, as written, can be very difficult.

Discover More: Is the Fear of Failing a Problem at Your Laboratory?

Building vs. Buying: Laboratory Information System Hidden Costs 

As a former programmer and laboratory information system software development manager, I can tell you that nothing is more underestimated than developing a new homegrown LIS lab pathology software.

Pathology software development projects often take nearly twice as long as planned, and in some cases, never reach completion when the lab ultimately gives up. The staffing burden is just as significant. The added personnel costs, along with the loss of IT time for other critical LIS software needs, strain both the lab’s budget and its daily operations.

Discover More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company

Building vs. Buying: Laboratory Information System Licensing

Now, let’s address the common belief that a homegrown LIS system can be licensed to other labs as a source of revenue. In reality, this rarely works. LIS systems built for one lab’s unique workflows seldom fit another lab without significant changes, unless the software was designed from the start to be highly adaptable. Those changes require custom programming, not simple configuration.

The documentation would also need to be complete, clear, and usable by another lab’s IT team, which is uncommon for internally built LIS systems. Then there’s ongoing support. Any lab that buys your LIS system will expect timely answers and help. Your IT team would quickly be flooded with requests, forcing you to hire additional staff and increasing your costs (even further).

Discover More: Stability and Performance - The Two Most Important Aspects of a Modern Laboratory Operation

Building vs. Buying: Final Thoughts 

In olden times, when laboratory information systems were less flexible, less functional, and less cost-effective, in-house LIS software development might have been justifiable. Today, however, many established and reputable laboratory information system companies can expertly provide the functionality, service, support, and flexibility to cost-effectively meet the needs of labs of any size and complexity. 

Don’t fall victim to common myths. 

While building a homegrown laboratory information system software may seem cost-effective, if you dig a bit deeper, it’s clear that hidden costs will most certainly arise. 

With the laboratory landscape evolving rapidly, relying on vendor-supported LIS system software ensures faster implementation, better security, regulatory compliance, and ongoing innovation, making it the more sustainable choice for most laboratories.

Consider carefully the options for building vs. buying a new LIS system and make an informed choice.

On-Demand Webinar: Has Our Laboratory Outgrown Its Laboratory Information System? 

Dennis Winsten & Associates 

Dennis Winsten is the president of Dennis Winsten & Associates, an independent healthcare information systems consulting firm headquartered in Tucson, Arizona. With over 40 years of computer experience, including more than 30 years in healthcare systems, Mr. Winsten has established himself as an expert in the field. 

He holds the designations of MS, FHIMSS, and FCLMA, reflecting his extensive knowledge and contributions to healthcare informatics. His firm specializes in optimizing clinical information systems within complex computing environments, providing valuable insights and solutions to healthcare organizations.

Mr. Winsten is also a respected industry thought leader and regular contributor of Industry Insights articles at LigoLab.com. 

Learn more at www.dwinsten.com. 

Discover the Power of LigoLab’s All-in-One Medical LIS and Lab RCM Platform

LigoLab is an all-in-one medical LIS and lab RCM platform built for clinical, pathology, and molecular laboratories that want a single, unified laboratory information system to run their operations and manage their lab revenue cycle management efficiently. 

The LigoLab platform features fully integrated modules for all medical testing disciplines, advanced laboratory billing solutions, and innovative direct-to-consumer lab testing workflows, all powered by a shared database and an advanced rule engine. Labs gain faster turnaround times, cleaner claims, fewer manual steps, and the flexibility to scale without adding complexity.

Want to see how LigoLab can support your lab’s growth and efficiency? 

Contact a product specialist to learn more.