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Pathology Lab Software: Determining Which LIS System is the Best Fit for Your Laboratory
April 18, 2025
Clinical laboratory management and service represent big business. Currently valued at well over $200 billion annually, the global market is expected to reach a staggering $290 billion by 2028.
The secret behind this impressive growth is the growing demand for advanced pathology lab software, known as laboratory information systems (LIS software) and sometimes called laboratory information management systems (LIMS lab management software).
By using these innovative diagnostic lab software systems, labs can enhance their laboratory workflow management, boost efficiency, and streamline the often complicated laboratory billing process (RCM cycle).
Learn More: The Best Laboratory Information System Companies and the Advantages They Offer to Their Laboratory Clients
Types of Pathology Lab Software Systems
Pathology lab software can be confusing. Sometimes definitions are unclear or change over time.
For example, laboratory information systems (LIS systems) and laboratory information management systems (lab LIMS) previously referred to very different concepts and workflows, but today their meanings virtually overlap.
For example, the lab term pathology software can be used as a synonym for laboratory information system software, and more broadly for any other pathology lab management software used in a medical setting.
Taking it even a step further, we at LigoLab call our laboratory information system software an “all-in-one medical LIS and lab billing informatics platform” because it goes beyond the basic tenets of laboratory information system functions by including a powerful lab revenue cycle management module, and serves as an end-to-end enterprise-grade LIS pathology solution for all medical laboratory specialties.
The LigoLab platform features modules for anatomic pathology, clinical laboratory, molecular diagnostics, plus lab revenue cycle management, and direct-to-consumer lab testing (TestDirectly and TestDirectly.com), all on a silo-free and fully integrated application that supports every role, department, and case, enabling medical laboratories to attain a level of efficiency that allows for differentiation in the marketplace, rapid scaling of operations, and most importantly, more profitability.
Join us as we define commonly used pathology lab reporting software and highlight some aspects that allow LigoLab to stand out amongst other laboratory information system vendors.
Learn More: Six Factors That Should Be Considered Before Upgrading Your Lab's Pathology Reporting Software
What are Laboratory Information Systems (LIS Healthcare)?
Laboratory information systems (healthcare LIS) are the most common pathology lab software suites that one will find in a medical lab.
Traditionally, LIS systems are pathology management software that bring an entire operation under one umbrella, establishing and maintaining a centralized database for all laboratory departments and workflow.
Key Laboratory Information System Functions
- Centralized Database: Pathology LIS systems consolidate data from all laboratory departments and processes, facilitating seamless specimen management (sample tracking) and test result reporting.
- Compliance: Medical LIS systems ensure adherence to guidelines from CAP (College of American Pathologists), CLIA (Clinical Laboratory Improvement Amendments), HIPAA (Health Insurance Portability and Accountability Act), and other regulatory agencies, mitigating compliance concerns and avoiding penalties.
- Efficient Lab Processes: LIS lab solutions manage various tasks, such as patient demographic data collection, specimen and test result tracking, order tracking, quality control, diagnosis and treatment recommendations, instrument interoperability, and interfacing with third parties like physician customers, insurance companies, and customer service.
- Data Analysis and Reporting: Healthcare LIS systems offer robust data analysis, reporting, and audit capabilities, which help improve lab performance and decision-making.
- Digital Pathology Workflow: Modern LIS systems, like LigoLab's comprehensive platform, support advanced digital pathology solutions and enable automated lab workflow, replacing paper-based records and legacy pathology software systems. This results in fewer errors, faster processing times, lower costs for human resources, and increased scalability.
- Lab Revenue Cycle Management (Lab RCM): Medical LIS systems integrated with advanced laboratory billing solutions can transform RCM cycle visibility and optimize technical and financial performance.
- Sample Tracking System: LIS medical systems ensure accurate tracking of specimens and test results, enhancing overall lab efficiency.
LigoLab’s all-in-one informatics platform frees users from restrictions like paper forms and siloed laboratory software systems that cause interoperability issues. With one united LIS software infrastructure, end-to-end data integrity is ensured.
The Power of LIS Software and Effective Outreach
LIS software has become a key aspect of pathology lab management and outreach. For example, to streamline outreach processes, labs should be able to connect with customers, payers, and other third parties through automated digital portals such as LigoLab Connect.
Top-notch LIS pathology information system solutions can easily accommodate this digital connection and provide pre-loaded, customizable templates that make lab workflow management and reporting a breeze.
Industry Insights: The Competitive Edge in Laboratory Outreach: Enhancing Value Beyond Price
Why LIS Software and Lab RCM Interoperability Matter
Accurate and timely reporting is essential for efficient lab workflow and revenue cycle management success.
While the LIS system manages patient and specimen data within the technical workflow, the RCM cycle involves laboratory billing operations and communication with external billing services, forming the financial backbone of the lab.
Top-tier pathology lab software providers like LigoLab offer integrated solutions that fully support medical LIS functionality and the entire laboratory billing process, ensuring seamless operations from order to payment.
Learn More: The Power of Integration: Unleashing the Potential of LigoLab's LIS System & Lab RCM Platform
Powerful and Flexible Pathology Lab Reporting Software
LigoLab’s platform features advanced reporting engines that give users agency to control and customize reports across the lab information system and RCM cycle workflows.
Editor’s Note: If interested, you can experience the value of LigoLab’s integrated laboratory information and lab billing system firsthand by downloading free report template samples designed to enhance clarity, efficiency, and client satisfaction - or click the URL below to get a better understanding of the reporting capabilities housed within the medical LIS platform.
Learn More: How LigoLab's Pathology Lab Software Supports Lab Report Customization and Client Preferences
Laboratory Information System Vendors: Meeting the Growing Demands of the LIS Healthcare Industry
The market for LIS healthcare/laboratory information system functions in the U.S. is estimated at roughly $650 million, and all signs point to consistent growth throughout this decade.
Most laboratory information system companies realize this and respond to customer demands for enhanced 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.
Learn More: Laboratory Information System Software and Its Role in Overcoming Laboratory Staffing Challenges
Legacy LIS Systems vs. Future-Ready & Scalable Laboratory Information System Solutions
Medical labs using outdated LIS pathology systems without essential modules and features are disadvantaged. These legacy LIS systems hinder scalability and prevent labs from adapting to the evolving marketplace.
In contrast, labs that adopt future-ready, scalable LIS laboratory information system solutions can quickly adjust to market changes.
When comparing potential LIS vendors, labs should consider factors beyond LIS system functions and examine examples of laboratory information systems that foster scalability and integration.
LigoLab offers comprehensive medical laboratory information system solutions that cater to the ever-changing healthcare landscape, ensuring labs remain competitive and efficient deep into the future.
Learn More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company
What are Laboratory Information Management Systems (LIMS)?
The difference between laboratory information systems (medical LIS) and laboratory information management systems (LIMS) is often unclear among lab personnel.
While these laboratory software systems have many common features, like centralized lab workflow, sample tracking and analysis, diagnostic functionality, and real-time data access, they also have key differences.
LIS vs. LIMS: What is the Difference?
Laboratory information systems (medical LIS lab solutions) and laboratory information management systems (lab LIMS) play essential roles in the vast laboratory landscape. However, they differ in their primary focus, end-users, and complexity.
Core Focus
- Laboratory Information Systems: Pathology LIS systems prioritize individual patient records centered on patient data storage and management, including lab test results. The LIS software caters primarily to individual needs.
- Laboratory Information Management Systems: Lab LIMS software emphasizes sample-oriented data and laboratory operational workflows in a commercial rather than medical setting. LIMS vendors build systems capable of processing and analyzing large data batches like complex sample data from drug trials or biological testing.
End-Users
- Laboratory Information Systems: LIS systems are designed for pathology and clinical laboratories, veterinary clinics, and hospitals.
- Laboratory Information Management Systems: Lab LIMS are used in commercial settings, such as pharmaceutical labs, manufacturing plants, and water treatment or food and beverage testing facilities.
Cost & Implementation
- Laboratory Information Systems: Although it can vary greatly, LIS systems are usually more cost-effective, easier to implement, and adjust to specific lab needs.
- Laboratory Information Management Systems: In many cases, LIMS lab management software comes with more complex implementation protocols and higher initial costs.
It's important to note that the distinctions between LIS systems and LIMS lab management software are becoming less clear over time. However, understanding their key differences (LIS vs LIMS) can help clinical laboratories and pathology groups choose the most suitable pathology software for their needs.
Types of Lab LIMS: Key Features & Compliance Standards
A laboratory information management system LIMS delivers valuable data insights to key stakeholders, with LIMS providers supporting smarter decisions across operations, maintenance, and product development.
Modern LIMS lab management software platforms also come equipped with built-in compliance tools and industry standards, with LIMS vendors helping sample-centric labs maintain performance while meeting regulatory requirements.
Key Compliance Standards in Modern Lab LIMS Solutions
Today's lab LIMS solutions frequently adhere to the following compliance standards:
- ISO 17025: This international standard specifies the general requirements for the competence of testing and calibration laboratories.
- Good Laboratory Practice (GLP): A set of principles that provide a framework for the organization and management of test facilities while ensuring the quality and integrity of test data.
- 21 CFR Part 11: A set of FDA regulations that define the criteria for electronic records and signatures to be considered trustworthy, reliable, and equivalent to paper records in a compliant laboratory environment.
More Laboratory Workflow Management Tools
Laboratory Revenue Cycle Management (Laboratory Billing)
Lab revenue cycle management software (billing software for labs) facilitates revenue collection from patients, providers, and insurance companies while managing the laboratory billing process (RCM cycle).
The rapid growth of the RCM cycle software market accurately reflects the growing importance of having an effective laboratory billing strategy to combat market challenges and remain efficient and productive as a lab business.
Key Benefits of Modern Laboratory Billing Solutions
Modern laboratory billing solutions offer numerous advantages by digitizing and automating the laboratory billing process, including:
- Collecting patient insurance and demographic information
- Charge capture
- Coding
- Claim submission
- Payment collections
These features significantly improve the RCM cycle and revenue collection, helping laboratories navigate the increasingly complex claims reimbursement process, rising demands from third-party payers for digitalization and improved efficiency, and the shift toward value-based reimbursements.
LigoLab Informatics Platform: A Comprehensive LIS System and Lab Billing Solution
A deeply integrated laboratory information system like the LigoLab Informatics Platform provides users with multiple lab billing benefits, such as:
- Real-time verification, eligibility, and scrubbing components
- Automated ICD and CPT coding
- Automated client billing
- Much more
These capabilities result in fewer denials, reduced audit risk, increased collected revenue, improved cash flow, and enhanced profitability.
Learn More: The Power of Integration: Unleashing the Potential of LigoLab's LIS System & Lab RCM Platform
Scientific Data Management Systems (SDMS)
Scientific data management systems (SDMS) can be categorized as laboratory data management system software or laboratory data analysis software. They are designed to capture, catalog, and archive data generated by laboratory instruments and applications, providing an efficient solution for handling diverse data types.
Key Features of SDMS
SDMS solutions offer several essential features that set them apart from typical LIS systems/lab information management system software, which primarily deal with homogeneous data:
- Ability to handle unstructured, structured, and semi-structured data, including PDF files, images, instrument data, and spreadsheets.
- Integration of lab-generated data with administrative information, such as standard operating procedures and safety documents.
- Centralized database with easily searchable indices.
These features support efficient handling of diverse data types, helping to streamline laboratory workflows and data management processes.
Enhancing Research Productivity with SDMS
SDMS can improve research productivity through collaborative efforts between various departments or organizations. By providing a centralized data storage and management platform, SDMS promotes effective communication and collaboration, ultimately driving innovation and progress in the laboratory environment.
Computerized Maintenance Management System (CMMS)
A computerized maintenance management system (CMMS), sometimes called a CMMIS (computerized maintenance management information system), helps laboratories optimize performance against the key metric of reliable uptime.
CMMS achieves this by scheduling, managing, and reporting on maintenance operations, with its database serving as a central repository for information about an organization's assets, equipment, materials, and other resources.
CMMS Features Within the LigoLab Platform
Please note that some laboratory information systems, like the LigoLab platform, have CMMS functionality, such as a comprehensive audit trail and a sample tracking and management module. These features enable users to monitor every entity and activity with user permission and visibility control while tracking each specimen with a unique identifier that ensures the chain of custody and security.
As a result, modern pathology LIS systems like the LigoLab platform significantly reduce the likelihood of lost or misplaced orders, enhancing laboratory efficiency and security.
Learn More: How Specimen Tracking Software Improves Efficiency and Reduces the Chance for Diagnostic Errors
The Evolution & Future of Laboratory Software Systems
The future of laboratory software systems can be analyzed from two perspectives:
- The growth of the laboratory service market
- Laboratory software systems development
A few significant factors are driving the laboratory service market growth:
- An aging population
- A growing awareness of preventative health measures
- The increasing importance of disease surveillance and screening
- Patients taking a more active role in their healthcare
To make the most of this growth, labs should embrace innovative technology.
TestDirectly is a great example of this: it's a web-based direct-to-consumer lab testing portal that enables easy and accurate lab testing by connecting patients directly with labs.
Learn More: Highlighting the Versatility of the TestDirectly Direct-to-Consumer Lab Testing Portal
Interestingly, the laboratory software system market is expanding more rapidly than the laboratory service market. Clinical labs and pathology groups are in the midst of an IT revolution, as their data-intensive work requires effective data use and reporting, thanks to insurance companies and other third-party payers increasingly demanding automated and digital reporting.
Another factor propelling the growth of laboratory software systems is the number of labs still relying on paper-based or outdated laboratory workflow management systems.
Modern IT solutions, offering digitization and automation, are now essential to support the complex daily operations of a modern lab and enable future expansion. Adopting such enhanced diagnostic lab software has a direct impact on improving lab efficiency and productivity.
