Automate Administrative Tasks and Optimize Medical LIS & Lab RCM Workflow with LigoLab

Editor’s Note: This blog post was originally posted on April 12, 2020, and updated since that original posting. 

A study from the nonprofit Council for Affordable Quality Healthcare (CAQH) found that the healthcare industry could save billions annually if eight revenue cycle management (RCM) administrative tasks were upgraded from manual to automated billing processes.

It’s important to recognize that all eight administrative tasks outlined below are core elements of traditional laboratory revenue cycle management (lab RCM). Each activity carries a real operational cost and is often slow, repetitive, and highly susceptible to human error.

In this post, we’ll first examine these manual tasks in a lab billing scenario and then show how highly automated laboratory billing solutions, embedded within an integrated laboratory information system (LIS) and lab RCM platform, can dramatically reduce labor costs, minimize errors, and make your laboratory operations more efficient, scalable, and profitable.

Discover More: Clinical Laboratory Management Solutions for Lab Revenue Cycle Management (Lab RCM)

CAQH Sounds the Alarm: Manual Admin Work is Costing Healthcare Billions Annually

​The CAQH Index examined the state of administrative transactions within the U.S. healthcare system, focusing on the potential benefits of automating these processes. The report identified eight key administrative tasks that, if collectively transitioned from manual to fully electronic processes, could save the healthcare industry over $13 billion annually. ​

The eight administrative tasks highlighted in the report are listed here, along with the cost of performing the task manually:

Eligibility and Benefit Verification: Confirming a patient's insurance coverage and benefits before services are rendered.​

• Average Cost When Performed Manually: $8.77

Prior Authorization: Obtaining approval from a health plan before delivering specific services or medications to ensure they are covered.​

• Average Cost When Performed Manually: $14.24

Claim Submission: Sending requests for payment from providers to payers for services provided.

• Average Cost When Performed Manually: $4.22

Attachments: Additional documentation to support a healthcare claim or prior authorization request.​

• Average Cost When Performed Manually: $5.06

Coordination of Benefits: The process used to determine the order in which multiple health insurance plans pay when a patient has more than one coverage.

• Average Cost When Performed Manually: $1.05

Claim Status Inquiry: Checking the status of a submitted claim to understand its processing stage or if additional information is needed.​

• Average Cost When Performed Manually: $10.13

Claim Payment: The actual transfer of funds from the payer to the provider as reimbursement for services rendered.

• Average Cost When Performed Manually: $3.18

Remittance Advice: Detailed explanations from payers about claim payments, including reasons for denials or adjustments.​

• Average Cost When Performed Manually: $4.22

The CAQH Index report emphasized that automating these transactions would result in significant cost savings while reducing the time and resources spent on administrative tasks, thereby enhancing overall efficiency in healthcare operations.

Get Insight: CAQH Index Findings 

One Platform, Full Visibility: How LigoLab is Helping Labs Maximize Lab RCM Efficiency

The CAQH Index provides timely news for the laboratory C-suite and those motivated to cut costs and increase profit margins while improving the lab RCM cycle with advanced laboratory billing solutions. 

For those lab leaders ready to take action, LigoLab offers its all-in-one medical laboratory information system and lab billing platform. It flips the script on traditional laboratory billing by unifying medical LIS and lab RCM workflows, creating a faster and more reliable laboratory billing process.

The comprehensive and flexible LigoLab platform uses advanced automation to capture accurate patient information (such as patient demographics and insurance validation) even before a specimen enters the laboratory. 

With LigoLab’s modern laboratory billing solutions in place, CPT and ICD-10 coding is instant and automated, fully integrating the RCM cycle throughout a lab’s workflow. This is possible because all medical LIS & lab RCM functionality rests within one all-encompassing informatics platform and database. 

This means no interfaces, silos, duplication, or synchronization issues, among the most common challenges associated with using separate laboratory software for LIS system and lab billing workflow management. 

Discover More: Six Reasons Why You Should Choose an Integrated Laboratory Billing Solution for Your Medical Lab

Five Reasons Why You Should Consider LigoLab’s Billing Software for Labs

It’s time for labs to empower themselves to scale efficiently, boost margins, and collect every dollar they’ve earned. Here are five ways the all-in-one LigoLab platform helps its lab customers accomplish this.

1. Complete Integration of LIS & RCM Workflows - LigoLab unifies the lab information system and laboratory revenue cycle management processes into one united platform with a shared database. This eliminates the need for clunky interfaces between disconnected laboratory software systems, resulting in no data silos, duplication, or syncing issues.

2. Automation from Start to Finish - The platform uses advanced rules and automation to handle critical lab billing tasks:

• Patient demographics capture
• Insurance verification
• CPT and ICD-10 coding in real-time
• Claim scrubbing, submission, and appeals

This reduces human error, speeds up reimbursement, and minimizes denials.

3. Real-Time Data & Visibility - Unlike traditional laboratory billing models operating in the dark, LigoLab provides real-time business analytics into clinical and financial workflows. Lab staff and the laboratory billing team can make informed decisions instantly.

4. Increased Efficiency = Higher Margin - By streamlining RCM process workflows and reducing manual touches, labs can:

• Cut operational costs
• Speed up collections
• Capture more revenue 

5. Compliance & Audit Readiness Built In - The advanced laboratory billing system supported by the platform is transparent and traceable, making it easier to remain compliant with payer policies and regulatory requirements.

Get Insight: Understanding the Real Costs of Non-Integrated RCM Systems

The traditional lab revenue cycle management model is slow and lacks transparency. In contrast, the LigoLab platform provides unparalleled visibility and accurate data (in real time), which leads to successful lab billing. This gives labs the power to unlock their revenue potential and collect on all claims and appeals promptly.

Discover More: Enhancing Laboratory Workflow Efficiency with Advanced Laboratory Billing Automation - A Look at LigoLab's LIS & RCM Solution

LigoLab: Unifying Medical LIS & Lab RCM to Power Lab Efficiency, Accuracy, and Profitability

LigoLab is transforming medical laboratories with a single, fully integrated LIS software platform that combines advanced medical laboratory information system functions with end-to-end revenue cycle management. By eliminating disconnected systems and streamlining complex workflows, LigoLab empowers labs to work smarter, faster, and more profitably.

Founded in 2006 and headquartered in Los Angeles, LigoLab delivers an all-in-one informatics platform that supports modern pathology and clinical laboratory management, from order entry and specimen tracking to reporting, compliance, and lab billing. With advanced automation and intelligent workflow design, labs reduce errors, accelerate turnaround times, and remain compliant despite evolving regulatory demands.

What sets LigoLab apart is its ability to scale and adapt to labs of all types and sizes, including clinical, reference, anatomic pathology, and molecular diagnostics. The platform’s built-in business intelligence tools give labs real-time performance insights that drive informed decision-making and sustainable growth.

Discover More: LigoLab Informatics Platform - Uniquely Designed with Pricing Tiers to Deliver Maximum Value

Redefining What’s Possible With Integrated LIS System and Lab RCM Workflows

LigoLab is helping labs improve care delivery, optimize operations, and unlock new revenue potential. As a trusted LIS software vendor, LigoLab is redefining what modern clinical and pathology lab management can achieve, empowering laboratories to scale with confidence, operate more efficiently, and thrive in an increasingly complex healthcare environment.

Ready to modernize your LIS system and laboratory billing operations? 

Contact LigoLab today to discover how its all-in-one informatics platform can transform your lab’s performance, profitability, and future growth.

Act Now: Contact a LigoLab Product Specialist!‍