How Cole Diagnostics Streamlined Client Billing with LigoLab’s LIS & RCM Platform

There is no doubt that laboratory diagnostics play an invaluable role in the clinical care of patients. Considered by many to be the workhorse of healthcare, nearly 70 percent of today’s medical decisions are dependent on medical laboratories and the tests they perform. 

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 Lab Billing Adversity with Innovation 

Founded in 2004, Cole Diagnostics is a comprehensive reference laboratory specializing in pathology, cytology, molecular, microbiology, clinical chemistry, immunoassay, tissue staining, and more. 

Led by Dr. Ryan Cole, the full-service medical lab has invested in the latest (and most effective) technology, ensuring that cutting-edge science is at play to get the most accurate answers possible, thereby improving patient outcomes.

Although others in the industry struggle, one can make the case that Cole Diagnostics is not only surviving, but it’s thriving. 

Automating Lab Billing: How Cole Diagnostics Reduced Costs and Accelerated Payments

Technology has helped Cole Diagnostics overcome many of the industry’s woes. 

For example, by automating its client laboratory billing process with LigoLab’s Medical LIS & Lab RCM Informatics Platform, the organization has streamlined operations, accelerated payment cycles, and boosted overall staff efficiency by minimizing manual tasks.

“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.”

When asked about LigoLab’s laboratory information system (LIS) and lab billing platform’s impact on her lab’s staffing needs, Cole said, “At our current volume, the automation has enabled us to reduce our lab billing department by one less full-time employee. This 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. This, however, was not an effective long-term solution.”

With labs being pushed to their limits, forward-thinking lab executives like Kelli Cole understand the value that comes from the steady movement toward digitization.

“We went from a manual laboratory billing process of sorting through stacks of papers to being able to rely on our LIS system 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 system that allows 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 Billing and Its Complexities Require Powerful Laboratory Billing Solutions

Faster sorting enabled the lab to handle the testing volume resulting from COVID-19 surges more easily without overhiring or reshaping the lab billing department. The lab also experienced a reduction in time spent on client accounts in A/R, thanks to the accuracy of the data received by the laboratory billing team. This accelerated the review process, enabling client invoices to be distributed 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.”

In addition to the ability to automatically sort by payer, LigoLab’s rule-based and automated laboratory billing solutions support 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, labs 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 laboratory billing module and its powerful laboratory billing solutions can efficiently manage and support it.  

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Laboratory Billing Compliance is Key

Another important way that automated client laboratory billing improves the way labs operate is through compliance with laws and rules 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 which entities laboratory testing organizations do business. These laws can also significantly impact how physicians order critical tests for their patients.

To put it bluntly, coding complexity and stricter compliance guidelines make it very difficult for labs to maintain and enhance lab billing practices without lab RCM automation. 

“As laboratories and medical groups expand nationally, it is important for them not to overlook compliance with applicable laws and regulations, including states’ direct billing, anti-markup, and disclosure laws,” said Avunjian. “The best way to ensure lab billing compliance is to replace manual workflows with lab RCM automation.”

Avunjian added that the laboratory billing workflow made possible 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 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.

She said the lab explored other options to improve client lab billing before identifying LigoLab’s all-in-one pathology lab software solution as the most efficient option. She said it took about three months for all of the lab’s clients to be set up and configured within the laboratory billing module. She credited LigoLab’s dedicated support team for being very responsive and helpful, 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 looking for the same advantages as Cole Diagnostics, LigoLab offers the perfect automated client lab billing solution as part of a comprehensive informatics platform that efficiently covers all laboratory revenue cycle management workflows (client, payer, and patient billing). 

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 sharing the same database and 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 lab billing process to begin at order origination by supporting real-time address and patient demographic validation, 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 platform also features the Billing Encounter, the driving force that consolidates all relevant case information within a single data entity, including order and specimen, patient and payer demographics, coding, billing, and remittance processing. 

The Billing Encounter enables data to flow into real-time lab workflow queues while also providing user-defined filters and templates that allow for the configuration of rules and the strategic distribution of work, with full audit trail visibility. 

Boost Your Lab’s Revenue with LigoLab’s RCM Module!

Eliminate revenue leakage, automate complex lab billing workflows, and get paid faster with LigoLab’s fully integrated revenue cycle management module. 

Schedule a personalized lab RCM demo today!

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