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Cost of Inaction: The Dire Consequences of Neglecting Modernization in Laboratory Operations and Informatics
November 21, 2025
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In today's ever-evolving medical landscape, characterized by declining reimbursements, staffing shortages, and competitive and regulatory pressures, advanced laboratory information systems (LIS systems) are no longer a luxury but a necessity.
Modern laboratory information systems are the backbone of any clinical laboratory or pathology group, supporting the management of patient and sample data, automating tasks and lab workflow, and interfacing with third-party laboratory software systems.
These robust systems are designed by laboratory information system vendors that support customers, offering game-changing lab report customization and delivery options, interoperability, and even advanced laboratory billing solutions that fully manage the in-house laboratory revenue cycle management (lab RCM) process.
However, despite the clear benefits, many medical laboratories continue to operate with legacy and inadequate medical LIS systems that are incapable of driving operational modernization.
By sticking with outdated LIS systems for their pathology software needs, these medical labs represent the cost of inaction, and this inaction can be far more expensive in the long run when compared with investing in a modern, efficient, and scalable lab information system.
Discover More: A Conversation With LIS System Administrator Kristie Becerra
A Failure to Modernize and the High Risk of Sticking with Outdated Laboratory Information Systems
As the healthcare sector and technologies evolve at an accelerated pace, medical laboratories that rely on legacy laboratory information systems face increasing risks and missed opportunities.
That’s because there are direct costs associated with outdated LIS lab solutions.
Cost Increases Over Time
Legacy LIS systems often rely on outdated hardware and software components that are no longer supported by the original LIS software vendor or by third-party laboratory technology providers. As these systems age, the risk of failure increases significantly, raising the potential for costly downtime and serious disruption to laboratory operations, a scenario no lab can afford.
Furthermore, as the LIS system continues to age, a growing share of the IT budget must be allocated to ongoing maintenance, support, and patchwork fixes, resources that could be better invested in modernization, automation, and innovation.
Discover More: How do I Know if My Laboratory has Outgrown Its LIS System?
Cost of Reliability
Legacy LIS systems typically aren’t equipped to handle the current volumes or the complexity of the tests that modern labs are running, leading to slowdowns, bottlenecks, and manual workarounds. These inefficiencies can have a significant impact on turnaround times, which in turn can adversely affect patient care and client satisfaction.
Cost of Functionality
Legacy laboratory information systems may lack critical modern capabilities, such as cloud deployment, advanced analytics, and scalable integration, which limit a lab’s ability to evolve and stay competitive. In response, many labs attempt to “patch the problem” by layering on additional diagnostic lab software tools and interfaces to compensate for these gaps.
However, this patched approach often leads to a tangled web of disconnected systems, is costly to maintain, prone to data inconsistencies, and difficult to synchronize. Instead of operating from a single source of truth, the medical LIS becomes a liability, compromising data integrity, reliability, and overall performance.
Discover More: The Power of Integration - Unleashing the Potential of LigoLab's LIS System & Lab RCM Platform
Cost of Competitive Edge
Thanks to scalability constraints and configuration complexity, legacy LIS systems keep labs from reaching their full potential. They are at a competitive disadvantage when compared with their technologically adept competitors.
For example, legacy laboratory information system companies often charge thousands of dollars for any requested configuration change, and then weeks and even months pass before the request is completed. Even worse, sometimes the LIS company ignores the request. Adding insult to injury, that same request might’ve taken just minutes with a modern and flexible medical LIS system that allows lab staff to make the changes in-house without external help.
Discover More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company
Cost of Stagnation
Legacy LIS systems were not designed to evolve. They are static and rigid. This type of LIS model is suited for the reality of the time it was built, rather than the present day. Instead of supporting continuous development that benefits the lab, this antiquated LIS software creates an artificial ceiling for growth and becomes a liability with time.
Cost of Revenue
Relying on old laboratory information systems likely means labs will experience a decrease in net collections over time due to revenue leakage. Legacy LIS systems often struggle with laboratory billing integration and code capture due to data silos and the need to synchronize among disparate systems.
The best LIS software platforms overcome this by enabling the laboratory billing process (RCM cycle) to start as the order enters the lab, and by offering a suite of lab revenue cycle management (RCM) tools (like demographic check, address validation, insurance discovery, and eligibility verification) that curtail clerical mistakes and reduce the potential for denials.
Cost of Missed Opportunity
By sticking with legacy laboratory information systems, medical labs are prevented from leveraging new technologies, such as digital pathology solutions, automation, artificial intelligence, interoperability with third parties and instrumentation, and data analytics. Each demonstrates how labs can use technology to enhance their services and improve patient care.
In today's competitive healthcare LIS landscape, with costs rising and margins falling, the ability to innovate is crucial for a lab’s survival. By clinging to old LIS lab solutions, these organizations miss out on harnessing available and innovative tools to improve their operations and offer more advanced services.
Industry Insights: The AI Revolution in Laboratory Billing - A Game Changer for 2025 and Beyond
Cost of Compliance and Security
Legacy LIS systems increase the potential for errors and lab data security breaches, which expose the lab and the patient. Additionally, with healthcare’s ever-changing rules and standards, labs equipped with legacy laboratory information system software often struggle to keep up with the changes, resulting in non-compliance and regulatory penalties.
Discover More: A Detailed Look at How Modern Laboratory Information Systems Fully Support Quality Control
Cost of Labor
Legacy LIS systems often lack modern integration capabilities, resulting in inefficient workflows and heavy reliance on manual processes. In contrast, today’s leading LIS software platforms offer advanced automation and full interoperability, enabling seamless data exchange and eliminating the need for lab personnel to input orders and patient information.
During processing, lab technicians may also need to redundantly input or retrieve data from multiple sources and search through physical records or contact other departments for missing information.
Additionally, outdated laboratory information systems are often subject to inefficient sample tracking and subpar reporting and test analysis capabilities. Add to this the need for frequent maintenance and lab technicians' troubleshooting technical issues related to the LIS system software, and it’s easy to see how a legacy LIS in healthcare creates unnecessary and time-consuming manual steps that are prone to error and bottlenecks, adversely affecting processing times.
Discover More: How Modern Laboratory Information Systems Can Protect Against External Threats Like Labor Shortages
Cost of Frustration
Legacy LIS systems can have a direct impact on staff morale. When lab professionals are forced to work with outdated LIS software that creates workflow inefficiencies and demands time-consuming manual processes, job satisfaction declines. Over time, this environment makes it significantly harder for laboratories to attract and retain skilled talent.
Case Study: Pathology Lab Management Guide - Find Out How Experts Utilize Best Practices to Thrive
Cost of Patient Care
Lastly, and perhaps most importantly, is the cost of patient care. In an age where precision medicine is becoming more prevalent, having medical LIS systems that can handle complex genomic and molecular tests is crucial. Legacy LIS systems that can’t support this type of testing limit a lab's ability to provide the best possible patient care.
Discover More: Comparing LigoLab Informatics Platform with Legacy Laboratory Information System Software
Advanced Laboratory Information Systems Eliminate Bottlenecks and Drive Lab Growth
Compared to legacy LIS systems, modern laboratory information systems deliver a wide range of benefits, beginning with greater efficiency and enhanced patient safety, and extending to cost reduction and new revenue opportunities.
A modern laboratory information system is purpose-built to manage high volumes of complex testing while streamlining operations. It reduces errors, automates routine tasks, enhances connectivity, and improves turnaround times, delivering a more efficient and reliable clinical laboratory management experience.
Unlike legacy systems, it integrates seamlessly with other laboratory software platforms (without data silos or duplicate processes), which results in lower labor costs and end-to-end data accuracy.
Discover More: LigoLab Delivers the LIS System Interoperability Needed to Transform Medical Laboratories into Thriving Businesses
Additionally, a modern laboratory information system platform is designed to support the latest testing technologies and methodologies, like precision medicine, laboratory revenue cycle management, and direct-to-consumer testing, enabling the lab to offer the most advanced care to its patients.
Investing in modern LIS systems is not just about reducing costs; it's about positioning your clinical laboratory or anatomic pathology group for future success. As the healthcare landscape continues to evolve, medical labs must be able to adapt quickly to changing business needs.
By teaming with the best LIS software vendors and investing in modern pathology management software, labs can ensure they are ready to handle whatever the future holds, from new testing technologies to increased service demands.
Although transitioning to a new LIS system involves an upfront investment, the long-term returns of greater efficiency, stronger competitiveness, increased revenue, and future-readiness far outweigh the initial cost. In reality, the greater risk lies not in modernization, but in delaying it.
The cost of inaction compounds over time, limiting growth, exposing labs to operational vulnerabilities, and making it harder to remain relevant in a rapidly evolving healthcare landscape. For laboratories determined to protect their future and thrive, the path forward is clear: embrace modern LIS lab technology and move beyond the limitations of outdated systems.
Industry Insights: ECPC’s Strategic Leap into Digital Pathology - A Connected Vision for the Future
Your Time is Precious: Let LigoLab Handle Your LIS System Transition
Understandably, many labs dread a switch to a new LIS laboratory information system. The prospect of dedicating time and resources to the transition can feel daunting, and with a seemingly unending list of tasks, the default decision often becomes "We don't have the time for change."
That’s unfortunate because hidden and often overlooked costs for this indecision include ongoing inefficiencies, limitations, and missed growth opportunities. Ultimately, the time you believe you're saving is probably not a reality, and the old LIS system will cost you more over the long run.
At LigoLab, we understand these concerns intimately. That's why we've designed a process that takes the burden off your shoulders. Our implementation methodology does the heavy lifting for you.
You’re not expected to become IT or LIS system implementation experts overnight - that's our job. Our team of seasoned professionals works closely with your staff to handle the details of the transition, making it as seamless as possible.
We start by taking the time to fully understand your unique lab workflow, LIS and RCM processes, and business needs. This enables us to configure and adapt our laboratory information system software platform to mirror your existing operations while introducing efficiencies that drive productivity.
Our team handles the data migration, LIS system configuration, and user training. Our iterative testing and validation processes ensure everything works as expected before the final switchover.
And we don't stop there - we stay with you post-implementation. Our ongoing support and constant LIS system updates ensure you're always at the forefront of laboratory innovation, without additional time or resource investment on your part.
Discover More: Navigating the Future of Pathology - The LigoLab Advantage
Upgrading your laboratory information system isn’t just a technology decision; it’s a strategic step toward greater efficiency, sustainable growth, and long-term competitive advantage. With LigoLab as your implementation partner, you gain a seamless transition while preserving your focus on what matters most: delivering exceptional laboratory services.
It’s time to move beyond “We don’t have time.”
Modernization doesn’t have to be disruptive; it just needs the right partner.
Ready to explore how LigoLab can help your lab successfully transition to a future-ready LIS platform?
Click here to schedule a conversation with a LigoLab product specialist.
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LigoLab Case Study - Eastern Connecticut Pathology Consultants
“Before our first LigoLab implementation, we were at the mercy of legacy LIS systems that were extremely limiting and rigid. Our growth potential was restricted. But with LigoLab, our growth potential is almost limitless.”
-Kristen Conley, ECPC’s Chief Information Officer
Read the case study linked below and learn how Eastern Connecticut Pathology Consultants streamlined operations, facilitated business growth, and maintained its high standard of service quality by implementing LigoLab’s modern and agile laboratory information system software.
