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Laboratory Software Systems: What You Need to Know to Make an Informed Decision
May 27, 2025
Laboratories are big business. The global clinical laboratory market is estimated to be worth $200 billion and is expected to reach approximately $290 billion by 2028. In this article, we’ll examine the key drivers of this anticipated growth and what they tell us about the future of laboratory software systems, specifically pathology lab software.
Learn More: The Ultimate Guide to Choosing the Best Pathology Software for Your Lab
Breaking Down Various Types of Laboratory Software Systems
Laboratory software systems terminology can be confusing. Sometimes definitions change over time, causing this confusion.
For example, laboratory information systems (LIS systems) and laboratory information management systems (LIMS systems) previously represented different concepts, but now largely overlap in functionality, and lab personnel often use them interchangeably to describe their pathology lab management solution.
Additionally, pathology lab reporting software can be used as a synonym for LIS laboratory information system software, and more broadly, refers to any pathology software deployed within a medical laboratory environment.
Taking it even a step further, at LigoLab, our lab information system is called an “All-in-One Informatics Platform” because it goes beyond the basic tenets of LIS software and clinical laboratory management as an end-to-end enterprise LIS lab solution for all medical laboratories.
Learn More: Stability and Performance: The Two Most Important Aspects of a Modern Laboratory Operation
The LigoLab Medical LIS & Lab RCM 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. The next-gen platform supports laboratories of all types as they differentiate in the marketplace, scale their operations, and become more profitable.
In this article, we’ll use laboratory software systems and laboratory workflow management software to describe the full range of tools used in the clinical environment. We’ll also define the most commonly used systems and highlight the key features that make LigoLab a standout in the pathology software landscape.
Learn More: The Best Laboratory Information System Companies and the Advantages They Offer to Their Laboratory Clients
Defining the LIS Laboratory Information System
Laboratory information systems are the most commonly used pathology software suites for medical labs. Traditionally, the medical laboratory information system brings the entire lab under one LIS software umbrella and establishes and maintains one centralized database for all departments and processes. LIS system software manages data collection, streamlines laboratory workflows, and facilitates accurate reporting.
Because a medical LIS 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, modern LIS software has rendered paper-based records and legacy LIS systems obsolete, resulting in fewer errors, faster processing times, lower human resource costs, plus increased scalability.
LigoLab’s all-in-one LIS software platform frees users from restrictions like paper forms and siloed data that prevent maximized interoperability and efficiency. With one united lab pathology software infrastructure, end-to-end data integrity is ensured.
Learn More: Understanding the Real Costs of Non-Integrated RCM Systems
The Importance of LIS Pathology Reporting Software
Reporting has become an increasingly important component of LIS laboratory information system software. Customers and third-party payers now, more than ever, demand that laboratories interface with them through automated electronic portals.
The best LIS software solutions come equipped with customizable templates and built-in interoperability features that enable seamless data exchange across pathology reporting systems.
Examples of laboratory information systems that excel in reporting should always include the all-in-one LigoLab platform, which has powerful automation and reporting engines that make every element of the LIS system and lab RCM cycle workflow 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 they 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. has reached $2 billion, with projections of 6.5 percent growth per year over the next decade.
Most laboratory information system vendors are responding to this demand for advanced 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-party public health agencies, payers, physicians, and billing services, even as mounting challenges such as reimbursement cuts and LIS staffing shortages grow.
Labs relying on legacy LIS systems short on functionality and scalability are at a clear disadvantage in today’s challenging environment. In contrast, those that adopt future-ready, scalable medical LIS platforms are better positioned to adapt and thrive in a rapidly evolving marketplace.
Learn More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company
Defining the Laboratory Information Management System
Even within the lab, the distinction between a laboratory information system and a laboratory information management system (lab LIMS) is often misunderstood. While both solutions offer centralized workflow management, sample tracking, diagnostic tools, and real-time data access, they serve different purposes and have key functional differences.
Let’s explore them here.
LIS vs. LIMS: What are the Differences?
One of the biggest differences between laboratory information systems and 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.
LIS software solutions are designed to manage patient data, test results, and clinical lab workflow, with a strong focus on supporting individual care for patients and their healthcare providers. They also handle clinical testing and report generation.
In contrast, lab LIMS platforms are better suited for commercial or research environments, where large volumes of complex data, such as that from drug trials or biological testing, must be processed and analyzed in batches.
The best LIS software and best LIMS solutions have been engineered for different end-users, with the medical LIS designed for pathology and clinical laboratories, veterinary clinics, and hospitals.
Lab information management systems are commonly deployed in commercial settings such as pharmaceutical labs, manufacturing plants, and facilities that test water, food, and beverages.
Regulatory compliance is another critical factor to consider. Leading LIS software platforms are designed to align with standards set by CAP, CLIA, and HIPAA, helping medical labs meet regulatory requirements and avoid costly penalties.
In contrast, top LIMS lab management software supports compliance with ISO 17025, Good Laboratory Practice (GLP), and 21 CFR Part 11 (the FDA’s regulations for electronic records and signatures), making them ideal for regulated commercial and research environments.
Learn More: Best LIS Software - Maximize Growth With Cutting Edge Pathology Lab Management Software
Knowing and Understanding Other Laboratory Software Systems
Laboratory Revenue Cycle Management (lab RCM) Systems
Laboratory revenue cycle management (lab RCM) software facilitates revenue collection from patients, providers, and insurance firms while managing all related laboratory billing processes. The RCM software market has grown 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 enhance the RCM cycle by digitizing and automating key lab billing processes. Advanced RCM tools streamline everything from collecting patient insurance and demographic data to charge capture, coding, claim submission, and payment collection.
As claim reimbursement processes increasingly become more complex and third-party payers push for greater digitalization and efficiency, the shift toward value-based reimbursements makes lab revenue cycle management software a critical tool for any efficient, high-performing laboratory.
A deeply integrated, all-in-one pathology information system with advanced laboratory billing solutions built into its core structure, such as the LigoLab Medical LIS & Lab RCM Informatics Platform, provides users several advantages for in-house lab billing. They include real-time verification, eligibility, and scrubbing components that help ensure the necessary data for a successful RCM process is captured as the order enters the lab.
Advanced laboratory billing solutions offer automated ICD and CPT coding, along with streamlined client billing. Equipped with powerful revenue cycle management tools, they help reduce denials, minimize audit risk, increase collections, and boost overall profitability.
Scientific Data Management Systems (SDMS)
Classified as laboratory data management system software (or laboratory data analysis software), scientific data management systems (SDMS) applications help capture, catalog, and archive the data generated by various laboratory instruments and applications.
While SDMS can represent an efficient solution for handling unstructured data, they are also designed to handle structured and semi-structured data, including PDF files, images, and spreadsheets. This ability to handle unstructured, heterogeneous data is what sets these systems apart from typical LIMS lab management software, which deals mostly with homogeneous data.
SDMS applications also integrate lab-generated data with administrative information, such as standard operating procedures and safety documents, in easily searchable indices housed in a central database.
Lastly, SDMS can be leveraged to enhance research productivity through collaboration efforts between various departments and organizations.
Computerized Maintenance Management Systems (CMMS)
The most crucial factor for maintenance managers and departments is reliable uptime. Computerized maintenance management systems (CMMS) help laboratories optimize performance against this key metric by scheduling, managing, and reporting on maintenance operations.
Central to the functionality of CMMS is the database, which organizes information about an organization’s assets, equipment, materials, and other resources.
For example, a robust audit trail and a sample tracking and management module are examples of CMMS functionality embedded within 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 usage.
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 effective way to capitalize on this growth is by adopting new technologies that bring laboratories closer to patients through direct-to-consumer lab testing.
A strong example of a direct-to-consumer lab testing solution is TestDirectly. Designed by LigoLab, it’s an innovative portal that simplifies the testing process by replacing paper forms and manual tasks with a user-friendly digital workflow. It empowers patients with convenient, safe, and accurate access to lab testing, directly connecting them with direct-to-consumer labs.
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 pathology software that laboratories need.
The lab software market is outpacing the growth of the broader laboratory services market, driven by a sweeping IT transformation across clinical and anatomic pathology labs. As data-intensive environments, these labs stand to gain significantly from effective data management and reporting, but they also face serious consequences for errors. At the same time, industry partners, such as insurance companies, are raising the bar. They are demanding automated, digital reporting tailored to their requirements.
A final factor driving the growth of laboratory software systems is the continued reliance on paper-based processes and outdated legacy software in many labs. To remain competitive and viable, these labs must modernize.
Digitalization and automation are no longer optional - they’re essential for managing the complex operations of today’s clinical laboratories and for enabling future growth. The adoption of modern lab software is directly linked to increased efficiency, productivity, and scalability.
