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Laboratory Software Systems: What You Need to Know to Make an Informed Decision
July 2, 2024
Laboratories are big business. The global clinical laboratory service market is estimated to be worth about $200 billion and will reach approximately $290 billion by 2028. Later in this article, we will look at the key drivers of this growth and what they can tell us about the future of lab software, specifically pathology software.
Breaking Down the Types of Laboratory Software Systems
Laboratory software terminology can be confusing. Sometimes definitions change over time, causing this confusion. For example, laboratory information systems (LIS abbreviation medical; LIS system) and laboratory management information systems (LIMS full form, lab LIMS) used to refer to very different concepts, but today their meanings largely overlap and some people use them interchangeably.
Or, to take another example, pathology lab management software can be used as a synonym for LIS laboratory information system. It can also be used more broadly, to refer to any software deployed within a laboratory environment.
Taking it even a step further, at LigoLab we call our lab information system an “Informatics Platform” because it goes beyond the basic tenets of pathology software and clinical laboratory management to serve as an end-to-end enterprise-grade software LIS lab solution for all medical laboratories.
Learn More: Stability and Performance: The Two Most Important Aspects of a Modern Laboratory Operation
The LigoLab LIS & RCM Laboratory Informatics Platform includes modules for anatomic pathology (LIS pathology), clinical laboratory (LIS medical), molecular diagnostics (molecular LIS), laboratory revenue cycle management (lab RCM), and direct-to-consumer lab testing (TestDirectly and TestDirectly.com), all on a silo-free integrated platform that supports every role, department, and case, enabling laboratories to differentiate in the marketplace, scale their operations, and become more profitable.
In this article, we will use laboratory software systems and laboratory workflow management software to refer to all software used in a laboratory environment, and we will define commonly used systems below while also highlighting some of the many aspects that allow LigoLab to be a pathology software stand out amongst the competition.
Defining the LIS Laboratory Information System
Laboratory information systems are the most common software suites utilized by medical labs. Traditionally, the laboratory information system (a.k.a. medical LIS) brings the entire lab under one software umbrella and establishes and maintains one centralized database for all laboratory departments and processes. The LIS system is responsible for data collection, laboratory workflow management, and result reporting.
Because a medical laboratory information system is usually the central repository of all data relating to patients and their samples, it needs to effectively operate within the guidelines of CAP (College of American Pathologists), CLIA, (Clinical Laboratory Improvement Amendments), HIPAA (Health Insurance Portability and Accountability Act), and other regulatory agencies to mitigate compliance concerns and avoid penalties.
Some of the processes managed by medical LIS software include:
- Collection of patient demographic data (age, gender, ethnicity, blood type, etc.)
- Tracking and handling of specimens and test results for individual patients
- Order tracking
- Quality control
- Diagnosis and treatment recommendations
- Interoperability with lab instrumentation
- Interfacing with third parties including clinicians, insurance companies, and laboratory billing services
- Data analysis and reporting, including audit capabilities
With automated and electronic clinical lab workflow queues, the modern medical LIS has rendered paper-based records and legacy LIS systems obsolete, resulting in fewer errors, faster processing times, lower human resources costs, and increased scalability.
LigoLab’s all-in-one platform frees users from restrictions like paper forms and siloed data preventing maximized interoperability and efficiency. With one united pathology software infrastructure, end-to-end data integrity is ensured.
Learn More: Understanding the Real Costs of Non-Integrated RCM Systems
The Importance of Pathology Reporting Software
Reporting has become an increasingly important component of LIS lab information system software. Customers and third-party payers now more than ever demand that laboratories interface with them through automated electronic portals, and the best LIS software solutions come pre-loaded with common, customizable templates and a level of pathology reporting software interoperability that can create a seamless data exchange.
Examples of laboratory information systems that excel in reporting should always include the all-in-one LigoLab platform, which has a powerful reporting engine that makes every reporting element for the LIS system and RCM cycle workflows completely customizable.
For a closer look at examples of report templates produced by the LigoLab platform, we invite you to take advantage of our free download of lab report templates to see how these templates can add value for your customers.
We also encourage you to click below to learn how labs like yours benefit from an all-in-one platform that drives efficiency and profitability.
Learn More: Reduce Denials and Stop Revenue Leakage With Integrated Laboratory Billing Management
Laboratory Information System Vendors and Market Demand
The medical LIS/healthcare LIS market in the U.S. amounts to almost $2 billion and is predicted to grow at 6.5 percent per year over the next decade. Most laboratory information system vendors are responding to this demand for information technology to support higher productivity, reduced costs, fewer errors, and better data management and analysis.
These needs are compounded by external pressure on laboratories to provide seamless integration with third parties such as public health agencies, payers, physicians, and lab billing services, even as mounting challenges like reimbursement cuts and LIS staffing shortages are growing. Labs using a legacy LIS system that lacks functionality (modules and features) and prevents scalability are at a definite disadvantage during these challenging times, and labs that embrace future-ready and scalable medical LIS systems can quickly adapt to the changing marketplace.
Learn More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company
Defining the Laboratory Information Management System
The difference between a laboratory information system (medical LIS) and a laboratory information management system (lab LIMS) can often be misunderstood by even those within the lab. While these medical laboratory solutions share many features, like centralized lab workflow management capabilities, sample tracking, analysis and diagnostic functionality, and real-time data access, they have key differences.
Let’s explore them here.
LIS vs. LIMS: What are the Differences?
One of the biggest differences between a lab information system (LIS system) and a lab information management system (LIMS lab management software) is that LIS system solutions usually focus on individual patient records as opposed to LIMS solutions which are generally sample-oriented and focused on a laboratory's operational workflows.
To expand on this, LIS lab solutions focus on patient data storage and management, plus lab test results, and the LIS system is generally optimized to cater primarily to individual needs, such as the patient and the patient’s healthcare provider. The medical LIS is also capable of managing clinical tests and generating reports. On the other hand, a LIMS is more suited for commercial settings because it processes and analyzes big data in large batches such as complex sample data generated from drug trials and biological testing.
The best LIS and best LIMS have been engineered for different end-users, with the medical LIS designed for pathology and clinical laboratories, veterinary clinics, and hospitals.
Lab LIMS are usually used in commercial settings such as pharmaceutical labs, manufacturing plants, and water treatment or food and beverage testing facilities.
One other important area to consider is regulatory compliance. The best LIS software adheres to guidelines from organizations like CAP (College of American Pathologists), CLIA, (Clinical Laboratory Improvement Amendments), and HIPAA (Health Insurance Portability and Accountability Act) to meet compliance requirements and avoid costly penalties.
The best LIMS lab management software meets ISO 17025 compliance standards, good laboratory practice (GLP), and 21 CFR Part 11 (the U.S. FDA’s compliance rules for electronic records) guidelines already in place.
Other Laboratory Software Systems to Consider
Laboratory Revenue Cycle Management (lab RCM)
Laboratory revenue cycle management (lab RCM) software was designed to facilitate revenue collection from patient/provider/insurance firms and manage all related laboratory billing processes. The RCM software market continues to grow from just over $80 billion in the U.S. in 2016 to about $120 billion today, with future growth predicted to be approximately 12 percent per year.
Modern laboratory billing solutions significantly improve revenue collection by digitizing and automating several RCM cycle processes with advanced RCM tools including collecting patient insurance information with their demographic data, charge capture, coding, claim submission, and payment collections.
With increasing complexity in the claims reimbursement laboratory billing process, rising demands from third-party payers for digitalization and improved efficiency, and the move toward value-based reimbursements, lab revenue cycle management software is an essential component of an efficient and productive laboratory.
A deeply integrated all-in-one laboratory information system like the LigoLab LIS & RCM Laboratory Informatics Platform provides users several advantages for in-house lab billing including real-time verification, eligibility, and scrubbing components that help ensure the necessary data for a successful RCM cycle is captured as the order enters the lab.
Advanced laboratory billing solutions like the LigoLab platform also support automated ICD and CPT coding and client billing. They come packed with RCM tools that lead to fewer denials, less audit risk, more collected revenue, and more profitability.
Scientific Data Management Systems (SDMS)
Classified as a laboratory data management system software (or laboratory data analysis software), the SDMS helps capture, catalog, and archive the data generated by various laboratory instruments and applications. While the SDMS can represent an efficient solution for handling unstructured data, it is also designed to handle structured and semi-structured data including PDF files, images, and spreadsheets. This ability to handle unstructured, heterogeneous data sets the system apart from the typical LIMS lab management system, which deals mostly with homogenous data.
The SDMS also integrates lab-generated data with administrative information, such as standard operating procedures and safety documents, in easily searchable indices housed in a central database.
Also, the SDMS can be leveraged to enhance research productivity via collaboration efforts between various departments/organizations.
Computerized Maintenance Management System (CMMS)
The most crucial factor for maintenance managers and departments is reliable uptime. A CMMS (also known, confusingly, as a CMMIS, or computerized maintenance management information system) helps laboratories optimize performance against this key metric by scheduling, managing, and reporting on maintenance operations.
Central to the functionality of the CMMS is its database, which organizes information about an organization’s assets, equipment, materials, and other resources.
A robust audit trail and a sample tracking and management module are examples of CMMS functionality in the LigoLab platform. This enables users to track every entity and activity with user permission and visibility control, and each specimen by a unique identifier that ensures the specimen chain of custody and security, virtually eliminating lost or misplaced cases.
Learn More: How Specimen Tracking Software Improves Efficiency and Reduces the Chance for Diagnostic Errors
The Future of Laboratory Software Systems
There are two distinct parts to any analysis of the future of laboratory software systems: the future of the laboratory service market and the outlook for software systems that laboratories use.
Concerning the former, growth is driven by a rise in infectious diseases, an aging population, increased awareness of preventative health measures, the increased importance of disease surveillance and screening, and the steady advancement of consumerism with patients becoming more active in their healthcare.
One way to take advantage of this growth is by embracing new technology that draws laboratories closer to patients with direct-to-consumer lab testing.
A good example of a direct-to-consumer lab testing solution is TestDirectly (TestDirectly.com), which is a web-based patient engagement portal that replaces paper forms and manual processes with a user-friendly electronic workflow that empowers patients by directly connecting them with laboratories for convenient, safe, fast, and accurate direct-to-consumer lab testing.
While the factors listed above will not drive exponential growth in the developed world, most of which is already reasonably well-served with laboratory resources, they can likely be counted upon to drive further significant incremental growth. That growth in itself generates more demand for the software that laboratories need.
The lab software market is growing more quickly than the laboratory service market. Like many industries, clinical and anatomic pathology labs are going through an IT revolution. Their work is especially data-intensive and there are significant rewards to effectively using and reporting on laboratory data and significant penalties resulting from data errors. Partners, especially third-party payers like insurance companies are increasing demand for reporting to be automated, digital, and according to their unique specifications.
A final factor fueling laboratory software system growth is that many laboratories still rely heavily on paper-based or legacy software data collection and management solutions. They will need to upgrade to survive.
In other words, IT solutions featuring digitalization and automation are no longer desirable add-ons, they are necessary to support the complex day-to-day operations of a modern clinical lab and provide scalability to foster future expansion in operations.
Using such software has a direct correlation with enhanced lab efficiency and productivity.
