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Laboratory Information Systems Are Not Commodities!
April 22, 2025
Let’s start with a cautionary tale that ends with a costly and ill-informed decision.
Laboratory X has encountered barriers to efficiency and growth with its pathology lab software, causing lab management to call for a Laboratory Information System Selection Committee to be formed as step one of a plan to engage with LIS software vendors and investigate all available lab information system options.
Learn More: How to Set Up a Committee to Select a Laboratory Information System
After receiving this directive from management, a committee is formed with its members representing all the various departments (pathologists, medical directors, IT directors, quality control, finance, etc.) that comprise the lab.
The Committee next conducts market research and, based on its findings and internal needs, creates a shortlist of LIS systems and laboratory information system vendors to evaluate.
The Committee arranges pathology lab software demonstrations with the laboratory information system companies it considers contenders, and this is followed by reference checks and site visits, both of which help to paint a clear picture of how to use the LIS software in a live environment.
The Committee wraps up the evaluation process by presenting what it believes to be the best LIS for the laboratory to senior management, while providing reasons why the chosen system was a better fit than the other medical LIS contenders.
Senior management listens to the recommendation but becomes fixated on the higher cost of the chosen LIS pathology solution. Believing that all LIS systems are the same, management (or the board) decides to pursue the least expensive laboratory information system option.
Fast forward a few months, and after a rocky lab information system implementation, the “inexpensive” and under-performing pathology software can’t eliminate the barriers to efficiency and growth that caused the lab to seek a new LIS software solution in the first place.
Management is forced to admit its costly mistake of thinking that laboratory information systems are commodities, or generally uniform in quality and interchangeable. Management returns to the Committee’s findings and starts another implementation process by reaching out to the LIS company that was originally recommended.
Editor’s Note: Besides underperformance, two other equally bad scenarios may play out for the lab. First, the LIS software may perform as promised, but the subpar support and service provided by the LIS company become an issue. Second, the company may be acquired by a private equity firm focused on raising revenue by increasing customer pricing.
Industry Insights: The Best Laboratory Information System Companies and the Advantages They Offer to Their Laboratory Clients
Think All Laboratory Information Systems Are the Same? Think Again
“If a medical lab thinks laboratory information systems are commodities and all the same, it’s in for a shock,” said Suren Avunjian, LigoLab CEO since jointly founding the company in 2006.
Despite their best efforts, Avunjian and his LigoLab colleagues still encounter plenty of "Laboratory Xs" - labs that remain misinformed and fail to adopt a big-picture perspective on the evolving laboratory industry and its future direction.
“Choose a mission-critical LIS software based on cost alone, and you’ll soon regret that decision,” he said while emphasizing how modern laboratory information systems like the LigoLab platform directly impact operational efficiency and staffing challenges by maximizing laboratory workflow management via automation and transparency.
Learn More: Navigating the Future of Pathology: The LigoLab Advantage
“Over the years, several eventual customers have signed on with LigoLab after initially deciding to go with another cheaper LIS system,” he said. “For them, cost was the top consideration at the time. They chose cost over laboratory information system functions and partnership.”
By choosing a cheaper LIS system backed by a pathology software company with fewer services to offer, Avunjian said the lab’s perceived savings were greatly outweighed by opportunity cost.
“Unfortunately, it took that misstep for them to see the true value of an advanced laboratory information system software platform backed by a LIS company invested in their success.”
Learn More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company
It’s the same story for Dennis Winsten, President of Dennis Winsten & Associates, an independent healthcare information systems consulting firm headquartered in Tucson, Arizona.
"At first glance, when comparing the top-level functionality of most LIS vendors, it’s easy to assume they’re all essentially the same," Winsten noted. "While many modern LIS vendors appear to offer similar features, making a truly informed decision requires looking beyond the surface.
Winsten stressed that buyers must examine how those functions are executed and consider the long-term ownership costs to fully understand the impact on users and the value delivered to lab operations.
“In the end, the details make all the difference," he said.
Industry Insights: Keys to Keeping Your LIS System Implementation on Track
Asking the Right Questions is a Key to Lab Information System Selection
While doing its due diligence to identify LIS software solutions that would fit the lab organization, Avunjian said making the most of interactions with the various laboratory information system vendors and asking the right questions is key.
“Asking the right types of questions is a must because it’s hard to identify potential differences through trade magazine listings and marketing hype. There’s a lot of misinformation out there, and the lab needs to know where the differentiation between LIS systems starts,” he noted.
Avunjian next provided examples of questions that will help the lab identify laboratory information systems with unique selling points and differentiating factors.
“Does the LIS company have a service level agreement? How long of an uptime does the LIS system provider guarantee? How fast is their response time when an issue arises? Do they guarantee response times and resolution times?”
“Engage with the laboratory information system companies and don’t hesitate to ask them detailed questions that will get to the heart of the system’s functionality, compatibility with existing hardware and software, user-friendliness, and scalability,” he said. “Other key areas of inquiry should include the lab vendor’s support and training, and the total cost of ownership for each LIS medical solution.”
Learn More: Questions All Pathology Labs Should Ask When Evaluating LIS Software and Support
Avunjian also recommended that labs prepare and send laboratory information system vendors a Request for Proposal that calls on them to provide detailed information about how their pathology LIS systems can meet the lab’s unique requirements.
For those who may not be familiar with RFPs, here’s a good template example to follow:
Learn More: RFP Example Template
Avoid Costly Setbacks by Adopting Advanced LIS System Technology
Avunjian and Winsten agreed that with a subtle change of mindset, lab leaders across the country can avoid the costly mistake of selecting laboratory information systems based on cost alone.
“Even though modern laboratory information systems may be perceived as costing more than their legacy rivals, it’s not an apples-to-apples comparison,” said Avunjian. “Modern LIS systems are much more cost-effective in the long run because they streamline laboratory workflow management and automate several tasks, creating leaner, more competitive, and more efficient lab operations.”
“Modern laboratory information systems backed by excellent customer service create differentiation that labs can capitalize on and use to rise above the competition,” he said.
Two Decades of Innovation in Modern LIS System Excellence
At LigoLab, we’ve invested in partnerships with our LIS system and laboratory billing customers and taken FULL RESPONSIBILITY for all their lab informatics since 2006.
LigoLab’s all-in-one informatics platform includes integrated modules for LIS system functionality and laboratory revenue cycle management (lab RCM) workflow. These modules fuel business growth and digitally transform laboratories into information-driven and future-ready operations.
You can learn more about the most flexible and comprehensive laboratory information system software platform available (and its tiered pricing structure for maximum value) by clicking on the link below to schedule a brief consultation/LIS software demonstration with our team of experts.
