Industry Insights
Five Steps to More Profitable and Efficient Laboratory Billing Operations
May 7, 2025
Let’s face it. Lab RCM (revenue cycle management meaning) is a complicated mix of codes, payers, and practices that can lead to efficient and profitable laboratory workflow management when done with the right RCM tools.
We all know that running a pathology practice or clinical lab is expensive. Medical labs take on significant overhead costs for equipment, supplies, and staff to serve their clients and patients. Thus, they must generate enough revenue to cover those costs and sustain business operations.
Modern laboratory billing solutions enable labs to be efficient and profitable, and most importantly, get paid accurately and promptly for services rendered.
LigoLab Informatics Platform is an all-in-one laboratory information system (LIS) and lab revenue cycle management solution designed to help pathology groups and clinical labs digitally transform with advanced RCM technology.
LigoLab’s lab information system, when teamed with its billing software for labs, brings together the modules and a shared database needed to streamline and automate processes, remove the potential for errors, and ensure accurate and prompt payment.
Proper lab billing starts with advanced laboratory software systems and the right mindset.
Here are five steps your medical lab can take to become more RCM cycle efficient and profitable.
Step 1: Recognize the RCM Cycle is NOT a Back-End Process
Laboratory revenue cycle management has traditionally been a “back-end” process. Fortunately, this outdated view is changing because accurate information needed for a smooth and productive lab billing workflow can now be interwoven throughout the workflow design of advanced laboratory billing solutions.
It’s best to start the RCM process at the order level, allowing verification and scrubbing components to be shared by the lab’s LIS system and RCM modules. Real-time patient/payer data verification, which is seamlessly integrated into one platform, prevents rejections and denials and ensures the laboratory billing process is streamlined and easily edited. This live queue-facilitated lab workflow greatly increases accuracy and throughput efficiency.
Learn More: Six Reasons Why You Should Choose an Integrated Laboratory Billing Solution for Your Medical Lab
Step 2: Integrate Lab Billing Data into a SINGLE Source Informatics Platform
Nationwide, an estimated 35 percent of denials are caused by inaccurate or missing data, primarily due to the human error component and the time-consuming nature of manual claim processing.
Industry Insights: Roundtable Discussion: Laboratory Billing Solutions and the Lab RCM Process
Standalone laboratory revenue cycle management systems substantially contribute to high denial rates and revenue loss. When medical LIS & lab RCM modules operate as separate silos, even if interfaced, the full capabilities of each cannot be achieved due to lack of consistency, transparency, and integrity of data.
A single fully integrated all-in-one informatics platform shares a common database and software infrastructure, thus ensuring proper interchange of laboratory data, greatly improving lab workflow integrity, accuracy, and processing.
Learn More: Leveraging LIS & RCM Integration to Improve the Laboratory Billing Process
Step 3: Implement Rule-Based Lab Billing Automation
Manual processes often lead to user errors and missing or inaccurate data. Furthermore, cumbersome and complex CPT and ICD coding typically bring on subsequent error-prone entries. Collectively, this greatly increases inaccuracies that lead to rejections and denials.
Modern laboratory billing solutions with rule-based RCM automation ensure verified demographics, accurate CPT/ICD coding, proper TC/PC and other modifiers for assignment and splitting, and regulatory institution compliance (PTP, MUE, LCD, NCD). This provides a transparent and customizable lab billing workflow and statement generation, and facilitates accurate data integration throughout the RCM process.
Learn More: Automation in Pathology Labs Using Advanced LIS System Software
Step 4: Maintain Constant Visibility of RCM Cycle Operations & Finances
Even when revenue and net collections are robust, the industry is constantly in flux, so one must be fully aware (at the touch of a button) of high and low-margin procedures, operational gaps, and department efficiencies (or lack thereof).
The goal should be to increase your lab’s clean claim pass-through rate. In that case, you should look to partner with an advanced RCM management company for a robust laboratory billing system that tracks all data and lab operations and can create customizable reports and dashboard templates that can easily be used to measure efficiency and workflows.
Learn More: The Top Five KPIs: Driving Successful Lab Revenue Cycle Management
Step 5: Remain Agile and Able to Pivot Given Unforeseen Industry Changes
Too often, medical laboratories become set in their ways when the niche focus is on profitability instead of investment in infrastructure improvements. This gets overlooked because it’s deemed “unneeded” for the lab’s current operations processing. This is primarily due to investment, current return, and the high cost of traditional, siloed, hard infrastructure improvements.
Forward-thinking labs can counter this potential stalemate when the tides change by investing in a pliable, customizable, and ever-expanding pathology lab software platform with multiple high-end capabilities. It’s a smart choice that will pay huge dividends down the road.
Learn More: Best Pathology Lab Reporting Software - 2025 Buyers Guide and Checklist
Look for pathology software that has no huge cost of entry and one that’s based on a true partnership model with no added future costs. One that includes shared costs and a customized metrics model.
With this model, you’re never hit down the road with unforeseen costs, and you have a future-proof operation at the onset, anchored by an enterprise-level medical LIS & RCM software platform ready to pivot and expand at any time in any landscape.
Learn More: Navigating the Future of Pathology: The LigoLab Advantage
To learn more about how LigoLab’s laboratory billing solutions can increase your clean claim pass-through rate and improve your overall laboratory workflow operations through advanced, highly customizable automation, act today by connecting with a LigoLab product specialist.
Connect Me with a LigoLab Product Specialist!
Aligning with Your Lab’s Growth Goals is What We Do! Here’s How LigoLab Delivers
LigoLab’s all-in-one medical LIS & lab RCM informatics platform is a powerful, flexible, scalable pathology lab management solution built to support the full spectrum of clinical labs and pathology groups. By unifying laboratory operations (LIS system workflow) and financial performance (lab billing), LigoLab ensures end-to-end data integrity while eliminating common barriers to growth.
More than just a core LIS laboratory information system, LigoLab offers a complete enterprise-grade pathology software solution. It includes modules for outreach management, document imaging, specimen tracking, digital pathology, client services, consultative diagnostics, and a robust lab revenue cycle management (RCM) solution that initiates lab billing as an order is placed.
Industry Insights: The Competitive Edge in Laboratory Outreach: Enhancing Value Beyond Price
With volume-based tiered pricing and no upfront licensing fees, LigoLab aligns directly with your lab’s operational and financial goals. For laboratories seeking a trusted lab management partner with deep expertise in process optimization, error reduction, and seamless system integration, LigoLab is the clear choice.
