Case Study
How Cole Diagnostics Streamlined Client Billing with LigoLab’s LIS & RCM Platform
May 8, 2026
There is no doubt that laboratory diagnostics play an invaluable role in patient care. Considered by many to be the workhorse of healthcare, medical laboratories underpin nearly 70 percent of today's medical decisions.
But despite their importance, these are challenging times for labs. Many are grappling with skyrocketing costs, shrinking margins, unprecedented staffing shortages, and an increasingly stringent regulatory environment.
Under the pressure of these problems, some labs are teetering on the brink of collapse as they urgently search for new ways to succeed. But all is not lost, thankfully. There is hope as labs find innovative new ways to keep the lifeblood of their organizations flowing.
One such lab is Cole Diagnostics, based in Idaho.
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Overcoming Laboratory Billing Adversity with Innovation
Founded in 2004, Cole Diagnostics is a comprehensive reference laboratory specializing in pathology, cytology, molecular diagnostics, microbiology, clinical chemistry, immunoassays, and tissue staining.
Led by Dr. Ryan Cole, the full-service lab operation has invested in the latest, most effective technology, ensuring cutting-edge science is at work to deliver the most accurate answers possible, thereby improving patient outcomes.
Although others in the industry struggle, one can argue that Cole Diagnostics is thriving.
Automating Lab Billing: How Cole Diagnostics Reduced Costs and Accelerated Payments
Technology has helped Cole Diagnostics overcome many of the industry's most pressing challenges.
By automating its client laboratory billing process with LigoLab’s all-in-one medical LIS & lab RCM platform, the organization has streamlined operations, accelerated lab revenue cycle management, and boosted overall staff efficiency by minimizing manual tasks.
Faster Invoicing and Accelerated Payment Cycles
"Because of the automation, invoices are getting out to clients in a timely, more regular fashion," said Vice President Kelli Cole. "As a result, clients pay us on a better timeline. For example, it accelerated the payments of one of our major client accounts by a month."
Reduced Staffing Costs Through Automation
When asked about LigoLab's impact on staffing needs, Cole said, "At our current volume, the automation has enabled us to reduce our lab billing department by one full-time employee. It saves the lab nearly $60,000 a year on salary and benefits. As our lab's volume goes up, the lab's efficiencies and operating costs will only improve."
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Automating Laboratory Revenue Cycle Management
Given these results, clinical labs and pathology practices that continue to rely on manual processes for client lab billing are putting both their clients and their businesses at a disadvantage. They're not only risking revenue loss due to inefficiencies and wasted resources but also increasing their exposure to potential compliance issues.
"Client laboratory billing has traditionally included time-consuming, mostly manual processes that often led to mistakes and delays in payment for services rendered," said LigoLab CEO Suren Avunjian. "Until recently, the only way to address this problem area was to expand the in-house laboratory billing department and hire more full-time employees. It, however, was not an effective long-term lab RCM solution."
Moving from Manual Processes to Digital Efficiency
With labs pushed to their limits, forward-thinking executives like Kelli Cole recognize the value of the steady march toward digitization.
"We went from a manual laboratory billing process of sorting through stacks of papers to being able to rely on our laboratory information software to handle all of that work automatically," said Cole. "Twenty percent of our lab's business falls into the client lab billing category, so this automation simplified things. We now have a process that enables us to quickly and compliantly separate client, insurance, and patient bills, and process them efficiently. It's been a tremendous improvement."
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Client Invoicing and Its Complexities Require Powerful Laboratory Billing Solutions
Faster sorting enabled Cole to handle the testing volume resulting from COVID-19 surges more easily without overhiring or reshaping the lab billing department. The diagnostic center also experienced a reduction in time spent on client accounts in A/R, thanks to the accuracy of the data provided by the laboratory billing team, which accelerated the review process and enabled the team to distribute client invoices more quickly.
"LigoLab's automation has streamlined clinical laboratory management for us and made it easier for the lab billing team to work its way through the RCM cycle," said Cole. "Our reviews are more efficient with those bills going out automatically."
Managing Volume Discounts, Credits, and Multiple Payment Methods
In addition to automatically sorting by payer, LigoLab's rules-based, automated laboratory billing solutions address other complexities associated with lab RCM.
For example, some clients want volume discounts and other credits on a daily, weekly, or monthly rolling basis. Additionally, some clients request adjustments for their patients and alternate payment methods. As a result, testing facilities must manage rolling totals, discounts, and multiple payment methods, all of which add complexity. The stakes are even higher when you factor in the serious consequences of potential double-billing.
No matter the complexity of the RCM process for a specific client, LigoLab's integrated lab revenue cycle management module and its powerful laboratory billing solutions can efficiently manage and support it.
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Laboratory Billing Compliance is Key
Another critical way automated client laboratory billing improves operations and finances is by ensuring compliance with laws and regulations such as the Clinical Laboratory Improvement Amendments (CLIA) of 1988, the Anti-Kickback Statute (AKS), and the Eliminating Kickbacks in Recovery Act (EKRA).
These laws are important because they can dictate how, where, and with whom laboratory testing organizations do business, and they can significantly affect how physicians order critical tests for their patients.
Why Manual Laboratory Billing Creates Compliance Risk
To put it bluntly, coding complexity and stricter compliance guidelines make it very difficult for organizations to maintain and enhance lab billing practices without automation.
"As laboratories and medical groups expand nationally, it is important for them not to overlook compliance with applicable laws and regulations, including direct billing, anti-markup, and disclosure laws," said Avunjian. "The best way to ensure lab billing compliance is to replace manual clinical lab workflow with RCM cycle automation."
Avunjian added that the laboratory billing workflow enabled by LigoLab's all-in-one lab information system and lab revenue cycle management platform is well worth the investment, citing labor and time savings, as well as ongoing incremental revenue gains.
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LigoLab’s All-in-One Laboratory Information System Software Makes Good Business Sense
In addition to increased efficiency, lower operating costs, fewer errors, and better compliance, automated client lab billing also offers meaningful advantages in business development.
"Having the LigoLab platform in place right before COVID gave us the ability to pivot and provide testing for many hospitals and health systems in our region," said Cole.
Implementation and Ongoing Support
Cole said the lab evaluated several laboratory information system vendors before identifying LigoLab's all-in-one LIS software solution as the most efficient option. It took approximately three months to set up and configure all the lab's clients in the laboratory billing module. She credited LigoLab's dedicated support team for being highly responsive and helpful throughout the process, providing regular check-ins.
"They're very attentive and willing to answer questions and solve problems. They help us find better solutions every step of the way," explained Cole. "We appreciate the flexibility the LigoLab platform presents and the ability to customize exactly what works for each of our customers."
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LigoLab’s Medical LIS & Lab Billing Informatics Platform
For lab managers seeking the same advantages as Cole Diagnostics, LigoLab offers the perfect automated client lab billing solution as part of a comprehensive informatics platform that efficiently manages all laboratory revenue cycle management workflow, including client, payer, and patient billing.
A Fully Integrated, Single-Database Platform
LigoLab's all-in-one laboratory information system and lab revenue cycle management platform is a comprehensive and flexible diagnostic lab software featuring two fully integrated modules that share a single lab database software infrastructure. This arrangement ensures data integrity from start to finish, eliminating the dreaded data silos and the need to synchronize between multiple laboratory software systems.
Most importantly, it enables the laboratory billing process to begin at order origination by supporting real-time validation of addresses and patient demographics, insurance eligibility, and discovery. This upstream support and integration has consistently resulted in significant improvement in net collections for platform users.
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The Billing Encounter: Centralized Case Management
The platform features the Billing Encounter, a driving force that consolidates all relevant case information into a single data entity, including orders and specimens, patient and payer demographics, coding, billing, and remittance processing.
The Billing Encounter enables data to flow into real-time clinical lab workflow queues while also providing user-defined filters and templates to configure rules and strategically distribute work, with full visibility into the audit trail.
Boost Your Lab’s Medical Laboratory Profit with LigoLab’s RCM Module
Eliminate revenue leakage and create automated labs that can handle complex lab billing workflow, and get paid faster.
Take Action: Schedule a lab revenue cycle management demo today!
Frequently Asked Questions About Client Lab Billing and LigoLab's Medical LIS & Lab RCM Platform
What is client laboratory billing, and why is it complex?
Client laboratory billing refers to the process by which labs invoice clients, such as physician practices, hospitals, or health systems, for testing services rendered. It is complex because it involves managing multiple payer types, volume discounts, rolling credits, alternate payment methods, and strict compliance requirements. Without automation, these tasks are highly manual and prone to delays and errors.
How did LigoLab's platform improve billing efficiency at Cole Diagnostics?
LigoLab's all-in-one medical LIS & lab billing platform empowered Cole Diagnostics to automate invoice generation, automatically sort bills by payer type, and reduce manual data handling. As a result, the lab was able to issue invoices more quickly, shorten accounts receivable timelines, and eliminate one full-time billing position.
How much did automation accelerate payment timelines for Cole Diagnostics?
According to Vice President Kelli Cole, the automation accelerated payments from one of their major client accounts by an entire month, which represents a significant improvement in cash flow and accounts receivable management.
What compliance laws does automated lab billing help address?
Automated lab billing helps testing facilities maintain compliance with several key regulations, including the Clinical Laboratory Improvement Amendments (CLIA) of 1988, the Anti-Kickback Statute (AKS), and the Eliminating Kickbacks in Recovery Act (EKRA). These laws govern how labs conduct business, handle payments, and interact with referring physicians and health systems.
How long does it take to implement LigoLab's platform?
For Cole Diagnostics, it took approximately three months to set up and configure all the lab's clients in LigoLab's laboratory billing module. LigoLab's support team provided consistent check-ins and hands-on assistance throughout the process.
Can LigoLab's platform handle volume discounts and custom billing arrangements?
Yes. LigoLab designs its rules-based laboratory billing solutions to manage complex lab revenue cycle management arrangements, including volume discounts, rolling credits on daily, weekly, or monthly cycles, patient-level adjustments, and multiple payment methods, while minimizing the risk of double-billing.
What makes LigoLab's platform different from other lab billing solutions?
LigoLab's platform is a fully integrated, all-in-one solution in which both the medical LIS and lab billing modules share a single lab database software infrastructure. It eliminates data silos, ensures end-to-end data integrity, and enables the laboratory billing process to begin at the point of order origination with real-time eligibility checks and demographic validation that lead to better net collections.
