LIS System and Lab Billing Data are Interdependent So Why not Integrate Both into ONE Powerful Informatics Platform?
November 22, 2023
We all know how frustrating laboratory billing can be. Dealing with the dreaded data silos created by disparate laboratory software systems, synchronization issues, mostly manual processes, and missing or inaccurate data.
Unfortunately, all of these limitations lead to denials, interruptions in cash flow, and ultimately lost lab revenue. Add to that the fact that reimbursements for lab services are continually being cut, expenses are on the rise, and payer requirements and government regulations are only becoming more complex, and it’s easy to see why it's no longer business as usual for the clinical lab industry.
In summary, the current state of lab billing (laboratory revenue cycle management) presents a major challenge for most clinical and reference laboratories and pathology practices, and things will only get worse for those in the C-suite unless appropriate action is taken immediately. To put it bluntly, the traditional approach to lab RCM, with the laboratory billing process beginning only after the final report has been finalized and distributed is no longer sustainable. In truth, it's a real threat to any laboratory's long-term financial health.
Fortunately, there is a better approach and a new way of thinking that’s gaining momentum.
Now, instead of starting lab revenue cycle management well downstream and dealing with the consequences, lab leaders can deploy modern laboratory information system (LIS) solutions like the LigoLab LIS & RCM Laboratory Informatics Platform that enable the RCM cycle to begin at order creation. Even better, these modern LIS software systems with high-end lab RCM functionality support demographics verification, eligibility, and scrubbing components that greatly increase a lab’s clean claims ratio, effectively address compliance liability, and stop revenue leakage in its tracks.
Integrated Laboratory Software Systems Maximize Both Lab Workflow Management and Net Collections
The LigoLab platform is simultaneously an advanced laboratory information system built on rules and automation and an innovative laboratory billing system that improves all lab RCM processes and maximizes net collections for services rendered. It’s a one-stop informatics solution for medical labs, no matter their testing discipline, testing volume, or testing complexity.
Lab Billing Software for Labs No Longer Needs to Be Separated From Laboratory Information System Functions
The secret to LigoLab's success is full control due to its fully integrated and flexible LIS system software architecture and comprehensive database that provides “one source of truth” for all lab workflow management, including all lab billing processes. This arrangement is a game-changer for labs interested in replacing manual labor with automation, achieving end-to-end data integrity, and most importantly, accelerating cash flow and increasing margin and profit.
LigoLab’s Automated, Integrated, and Transparent Laboratory Revenue Cycle Management Solution
LigoLab’s lab RCM module provides full transparency and control of the lab billing workflow at every stage, with up-front address and patient demographic data validation, as well as insurance eligibility checks, and insurance discovery, all available in real-time and only a click away. The module also features workflow queues, extensive audit trail functionality, rules and automation, and flexible statement distribution.
The Billing Encounter makes all of this possible, consolidating all relevant information within a single and easily accessible data entity. This includes order and specimen information, patient and payer demographics, coding, billing, and remittance processing data. The Billing Encounter serves as the driving force behind the logic that supports the entire LIS & RCM lifecycle.
From the Billing Encounter data seamlessly flows into workflow queues that provide users with ease of navigation as well as user-defined filters and templates that allow for the strategic distribution of work with full audit trail visibility.
The lab RCM module, supported by a customizable Distribution Engine, presents multiple channels for a lab’s billing department to deliver statements, such as by Electronic Health Record (EHR), remote server, email, SMS, fax, and mail. It also features a Payment Resolution module for transaction processing, payment workflow, payment search, and payment history, as well as an automated and hybrid Payment Reconciliation tool for reconciling payments.
The LigoLab LIS & RCM platform also supports comprehensive statistical reporting that enables access to and interpretation of all of the lab’s financial data. This means users can build dashboards and create dynamic, customized reports, and then this data can be easily extracted from the laboratory billing system to monitor trends, performance indicators, and benchmarks.
Lastly, LigoLab’s complete and flexible laboratory software solution also includes a Reporting Template Engine, plus streamlined appeal and denial management, remittance resolution, batch claim submission, and a customizable and flexible patient/client Pricing Policies Engine, as well as patient billing policies such as payment plans, automated multi-channel distribution, and compliance.
Move Your Laboratory Billing Process Upstream with LigoLab’s Highly Automated and Scalable Lab Billing Solution
Let’s face it. The lab billing process for medical laboratories includes a complex mixture of documentation, coding, compliance, and regulation between multiple parties. One incomplete form, one coding error, or one missed deadline can easily result in a costly claim denial.
Years ago, when margins were higher and labs overall were more profitable, enhanced laboratory revenue cycle management wasn’t a priority like it is today. Most labs back then relied on stand-alone and siloed laboratory billing solutions even though this often resulted in high denials and significant write-offs. Much of this was the result of starting lab RCM only after the lab report had been submitted to the client.
Fast forward to the present and that same laboratory billing process simply doesn’t work any longer. Fortunately, a new perspective and new technology are taking over, with medical lab owners now able to take control of the situation and move forward with new and advanced lab billing solutions that protect their businesses from external threats.
One such lab is Avero Diagnostics.
Lab Revenue Cycle Management Case Study
With LigoLab, medical labs across all genres can unite their operations and finances within one laboratory software system solution that leverages automation, integration, and transparency to mitigate denials and transform lab workflow and profitability.
To learn more, we invite you to take a few moments and read a case study featuring Avero Diagnostics. In this case study, we dive deep into the issues that Avero was having with its stand-alone laboratory billing system and then examine the results after the full-service high-volume laboratory decided to drop its prior lab RCM solution and move to LigoLab’s fully integrated LIS & RCM informatics platform.
LigoLab Case Study: Leveraging LIS & RCM Integration to Improve the Laboratory Billing Process
LigoLab’s All-in-One LIS System Software and Laboratory Billing Solution
For nearly 20 years, LigoLab has been a trusted laboratory information system partner for clinical laboratories and pathology groups, supporting its nearly 300 facilities nationwide with the latest in innovative lab informatics solutions. Schedule a demo today and learn firsthand how the LigoLab LIS & RCM platform modernizes laboratories, empowering them to operate more efficiently and scale more rapidly.