Laboratory Information Systems Are Not Commodities!

Consider a cautionary tale that culminates in an avoidable and costly decision. As its pathology lab software becomes a growing obstacle to efficiency and scalability, Laboratory X responds by assembling an LIS System Selection Committee to explore LIS lab vendor options and chart a path forward.

With leadership’s approval, a multidisciplinary committee is established, uniting stakeholders from across the organization, pathologists, medical directors, IT directors, quality control, finance, and other key departments.

Discover More: How to Set Up a Committee to Select a Laboratory Information System

From Market Research to a Costly Decision

The committee begins by conducting market research and assessing internal requirements to develop a shortlist of medical laboratory information system platforms and LIS software vendors for evaluation. It then schedules LIS lab demonstrations with shortlisted vendors, followed by reference checks and site visits to understand how each LIS system performs in real-world laboratory environments.

After completing its evaluation, the committee presents its recommended medical LIS healthcare solution to senior leadership, clearly outlining why it best aligns with the laboratory’s operational, clinical, and strategic needs compared to other contenders. Despite this guidance, senior management becomes fixated on the higher upfront cost of the recommended system. Operating under the assumption that all LIS system platforms are essentially the same, leadership ultimately overrides the recommendation and selects the lowest-cost laboratory information system option.

Discover More: Transforming Patient Care - The Power of Laboratory Information Systems (LIS) in Healthcare

When Cost Savings Turn into Costly Consequences

Fast forward a few months: following a turbulent LIS system implementation, the “low-cost” pathology software fails to remove the very inefficiencies and growth barriers that prompted the laboratory to seek a new laboratory information system in the first place. Performance falls short, workflows remain constrained, and the expected improvements never materialize.

Recognizing these outcomes, leadership is left with no choice but to acknowledge a costly misjudgment: the assumption that all LIS software platforms are interchangeable in capability and quality. Management ultimately revisits the committee’s original recommendation and initiates a second implementation effort by re-engaging the best LIS vendor it initially passed over.

Editor’s Note: Even when the LIS software delivers on its technical promises, two other significant risks may emerge. In one scenario, inadequate vendor support disrupts day-to-day operations. In another, the LIS provider is acquired by a private equity firm and shifts its focus toward increasing customer fees.

Industry Insights: The Best Laboratory Information System Companies and the Advantages They Offer to Their Laboratory Clients

Think All Laboratory Information System Software is 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 LIS company in 2006. 

Despite best efforts to educate the LIS healthcare market, Avunjian and his LigoLab colleagues continue to see “Laboratory X” examples: labs that underestimate the strategic importance of their laboratory information system software and fail to consider the broader direction of the laboratory industry.

“Cost-driven LIS system decisions rarely age well,” Avunjian said, emphasizing how modern pathology lab software platforms help labs overcome staffing pressures and operational complexity through automation and workflow transparency.

Discover More: Navigating the Future of Pathology - The LigoLab Advantage

When Short-Term Savings Undermine Long-Term Value

“Over the years, we’ve seen multiple customers come to LigoLab after first choosing a lower-cost LIS lab solution,” Avunjian said. “At the time, price was the deciding factor. Functionality and long-term partnership took a back seat.”

According to Avunjian, those perceived savings were quickly eclipsed by opportunity costs directly related to limited capabilities and an LIS software vendor with fewer services to support growth. “Unfortunately, it often takes that initial misstep for laboratories to fully appreciate the value of an advanced LIS system platform, one backed by a partner genuinely invested in their long-term success.”

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

Why LIS System Platforms Demand a Deeper Evaluation

Dennis Winsten, President of Dennis Winsten & Associates, an independent healthcare information systems consulting firm based in Tucson, Arizona, sees the same pattern across the industry.

“At first glance, when comparing high-level laboratory information system functions, it’s easy to assume most LIS vendors are essentially the same,” Winsten observed. “Many modern LIS healthcare platforms appear to offer similar features, but making a truly informed decision requires looking beyond surface-level comparisons.”

Winsten emphasized that laboratories must evaluate how those features are actually implemented and assess the long-term cost of ownership to understand the true impact on users and overall operational value. “In the end,” he concluded, “the details make all the difference.”

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Asking the Right Questions is a Key to LIS System Selection

As laboratories conduct due diligence to identify the best LIS solution suited to their organization, Avunjian emphasized the importance of maximizing vendor interactions and asking the right questions.

“Knowing what to ask is critical,” he said. “Trade listings and marketing claims rarely reveal meaningful differences. With so much misinformation in the market, laboratories must dig deeper to understand where true LIS system differentiation begins.”

Asking the Right Questions to Uncover True LIS System Differentiation

Avunjian then shared examples of the types of questions laboratories should ask to uncover meaningful differentiators among LIS software platforms. “Does the LIS company offer a service level agreement? What level of system uptime is guaranteed? How quickly does the team respond when issues arise, and are response and resolution times contractually defined?” he asked.

He encouraged labs to directly engage laboratory information system companies and probe beyond surface-level claims. “Don’t hesitate to ask detailed questions that get to the core of the LIS system’s functionality, its compatibility with existing hardware and diagnostic lab software, overall ease of use, and ability to scale as the lab grows,” Avunjian said. He added that evaluations should also closely examine the lab vendor’s support and training model, as well as the total cost of ownership associated with each medical LIS solution.

Discover More: Questions All Pathology Labs Should Ask When Evaluating LIS Software and Support

Avunjian also advised laboratories to develop and distribute a Request for Proposal (RFP) to prospective medical LIS vendors, requiring them to clearly outline how their pathology LIS solutions address the lab’s specific operational and technical needs. For organizations unfamiliar with the RFP process, the following linked template provides a helpful starting point. 

Discover More: RFP Example Template

Avoid Costly Setbacks by Adopting Advanced LIS System Technology 

Avunjian and Winsten agreed that a modest shift in perspective can help laboratory leaders avoid the costly mistake of selecting laboratory information system software based solely on price.

“While modern pathology LIS platforms may appear more expensive than legacy systems at first glance, the comparison isn’t apples to apples,” Avunjian said. “Over time, modern medical LIS solutions prove far more cost-effective by streamlining workflows and automating manual tasks, enabling leaner, more efficient, and more competitive laboratory operations.”

He added that modern LIS software platforms, when paired with high-quality customer service, create meaningful differentiation, one that laboratories can leverage to stand out in an increasingly competitive market.

Discover More: Market Differentiation and Unmatched Customer Service - Two Major Reasons Why You Should Consider LigoLab for Your LIS System Upgrade

Two Decades of Innovation in Modern LIS System Excellence

At LigoLab, we’ve built long-term partnerships with our laboratory information system and laboratory billing customers, and taken full responsibility for their lab informatics since 2006. Our all-in-one informatics platform unifies advanced LIS software functionality with integrated laboratory revenue cycle management (lab RCM), helping laboratories drive growth, eliminate silos, and operate as data-driven, future-ready organizations.

Learn more about the industry’s most flexible and comprehensive laboratory information system platform - and our tiered pricing model designed to maximize value - by scheduling a brief consultation or LIS software demonstration with our team of experts.

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