The Connected Laboratory: A New Approach to Laboratory Billing Services

(Note: A version of this laboratory billing blog was first published at Today’s Clinical Lab.)

Conduct a cross-country poll of clinical laboratory directors and managers, and chances are you’d find the majority of them are still deploying two standalone laboratory software systems for their operational needs: one for LIS laboratory information system functions, and one for laboratory billing, also commonly referred to as laboratory revenue cycle management (lab RCM).

That would be no surprise. Pathology practices and clinical laboratories have traditionally handled lab billing this way, with the RCM cycle serving as a separate laboratory workflow from technical operations. 

Going further, it’s a sure bet that most of these same siloed organizations begin the laboratory billing process only after the finalized lab report has been distributed. This often results in a frustratingly high number of denied claims (thanks to missing patient and case information that wasn’t captured upstream).

Discover More: Reduce Denials and Stop Revenue Leakage With Integrated Laboratory Billing Management

This challenge isn’t unique to laboratories; it affects medical providers across the board. Nationwide, an estimated 35 percent of claims are denied each year due to missing or inaccurate patient information, much of it stemming from manual clerical errors.

Traditional laboratory billing solutions worked just fine when laboratories were more profitable, and margins were high enough to offset the denials and write-offs closely associated with this back-end lab RCM process. 

However, downward market trends and shrinking margins are forcing labs to consider a new lab billing model that connects the interdependent laboratory information system and lab revenue cycle management workflows on a unified database and software infrastructure.

Discover More: LIS System and Lab Billing Data are Interdependent, So Why not Integrate Both into ONE Powerful Informatics Platform?

Bridging the Gap Between the LIS System and Lab RCM 

A much-needed paradigm shift within the laboratory industry has begun. 

The outdated, disconnected back-end laboratory billing process is giving way to a modern, integrated approach that allows pathology practices and clinical labs to initiate lab revenue cycle management the moment an order is received.

This new LIS system and laboratory billing model is supported by innovative lab RCM tools that optimize cash collection and protect laboratories from reimbursement cuts, fast-changing payer requirements, growing patient responsibility for healthcare costs, and other external threats.

Discover More: Understanding the Real Costs of Non-Integrated RCM Systems

Lab Billing Software and LIS System Integration

With lab RCM functionality woven directly into the laboratory information system workflow, laboratories can seamlessly integrate with clearinghouses and other third-party lab billing services to automate administrative tasks and validate critical patient and case information, such as address, demographics, insurance eligibility, insurance discovery, and prior authorization, in real time as the order is created.

Once captured, this information is quickly validated and instantly shared across the unified medical LIS & lab RCM platform, eliminating the need to synchronize master files and avoiding the inconsistencies that arise when data moves between multiple disconnected systems.

With key administrative tasks now automated, denial rates decrease, and first-pass acceptance rates rise, leading to immediate net collection gains for the laboratory following implementation. At the same time, in-house laboratory billing teams that were previously overwhelmed by rework caused by inadequate lab billing software can redirect their focus to resolving more complex cases, recovering revenue that might otherwise have been lost.

Another major advantage is the operational and financial visibility gained through LIS–RCM integration. This unified, data-driven environment provides real-time insight into both technical and laboratory billing workflows, offering high-level overviews and detailed drill-downs of business performance on demand.

Armed with this actionable intelligence, lab managers and executives can quickly identify bottlenecks, proactively address issues, and drive continuous improvement across the organization.

Discover More: The Power of Integration - Unleashing the Potential of LigoLab's LIS System & Lab RCM Platform

Other Laboratory Billing Solutions to Improve Lab Revenue Cycle Management

Deciding to go with an enterprise-level all-in-one laboratory information system (LIS software) solution that incorporates advanced lab RCM functionality throughout clinical laboratory management workflows is a sizable investment and a major change, so lab ownership is encouraged to do the necessary research and evaluation to find out if upgrading to a fully integrated laboratory information system platform makes sense for them and their business. A good first step is to establish a selection committee (see link below). 

Discover More: How to Set Up a Committee to Select a Laboratory Information System

In the meantime, there are practical steps any laboratory can take today to improve clean-claim rates and reduce the workload placed on its in-house lab billing team. To support this effort, we’ve created a straightforward laboratory revenue cycle management checklist outlining key manual tasks that should be completed during order entry to strengthen financial outcomes. You can access the checklist by clicking below.

By shifting their mindset and embracing the advanced laboratory billing solutions available today, laboratories can do far more than meet current and future challenges; they can operate efficiently and achieve stronger profitability.

Discover More: Laboratory 101 - Improving the Laboratory Billing Process To Prevent Common Errors

LigoLab's All-in-One Pathology Software Solution 

LigoLab is a leading provider of innovative end-to-end laboratory information system software for medical laboratories, servicing hundreds of facilities nationwide. 

As a comprehensive enterprise-grade pathology lab software solution, the LigoLab Medical LIS & Lab RCM Informatics Platform includes powerful modules that support all clinical laboratory management processes and lab workflow, including anatomic pathology, clinical laboratory, molecular diagnostics, lab revenue cycle management, and direct-to-consumer lab testing. 

A Fully Integrated Medical LIS & Lab RCM Platform Designed for Laboratory Growth and Performance

LigoLab’s integrated platform supports every role, department, and stage of the case lifecycle, empowering laboratories to deliver better patient service, differentiate in the market, scale efficiently, and increase profitability.

Its lab RCM module is tightly embedded within the LIS system, automating tasks such as ICD and CPT coding while reducing audit risk and boosting margins. Laboratory billing begins at order creation, with built-in verification, eligibility checks, and scrubbing RCM tools that improve clean-claim rates, increase revenue, and reduce denials and compliance exposure.

LigoLab is committed to long-term, mutually beneficial partnerships and assumes full responsibility for all LIS-related needs. This allows laboratory teams to stay focused on what matters most, delivering high-quality diagnostic services that support healthcare providers and improve patient outcomes.

Ready for Near-Perfect Reliability?

Learn about LigoLab’s 99.9% uptime guarantee and speak with a knowledgeable LIS and RCM specialist to see how your lab can benefit.

Act Now: Contact a LigoLab Product Specialist‍‍