Blog
Cost of Inaction: The Dire Consequences of Neglecting Modernization in Laboratory Operations and Informatics
July 24, 2023
In today's ever-evolving medical landscape, characterized by declining reimbursements, staffing shortages, and competitive and regulatory pressures, advanced laboratory information systems (LIS) are no longer a luxury; they are a necessity.
Modern LIS platforms are the backbone of any clinical laboratory or pathology group, managing patient and sample data, automating workflows, and interfacing with third-party systems. These robust lab information systems are built with the customer in mind, providing game-changing lab report customization and lab report delivery options, interoperability, and even laboratory billing solutions that fully support an in-house revenue cycle management RCM process. However, despite the clear benefits, many medical laboratories are still operating with legacy and inadequate LIS systems and not prioritizing operational modernization.
By sticking with outdated LIS systems, these medical labs represent the cost of inaction, and this inaction can be far more expensive in the long run than the cost of investing in a modern, efficient, and scalable LIS system.
A Failure to Modernize and the High Risk of Sticking with Outdated Laboratory Information Systems
As the healthcare sector and technologies continue to evolve at an accelerating pace, medical laboratories that continue to rely on legacy laboratory information systems face increasing risks and missed opportunities.
There are direct costs associated with an outdated laboratory information system. Consider the following:
Cost Increases Over Time
A legacy LIS system is likely to have outdated hardware and software components that are no longer supported by the LIS company and the other lab vendors and manufacturers. As a laboratory information system ages, the likelihood of system failure increases dramatically, potentially causing major downtime and disruption of lab operations, a worst-case scenario for any lab. Additionally, as the LIS software ages, a larger percentage of the IT budget will need to be spent on LIS system operations and maintenance.
Learn More: How do I Know if My Laboratory has Outgrown its LIS System?
Cost of Reliability
A legacy LIS system may not be equipped to handle the current volumes or the complexity of the tests the lab is running, leading to slowdowns, bottlenecks, and manual workarounds. These inefficiencies can have a significant impact on turnaround times, which in turn can affect patient care and client satisfaction.
Cost of Functionality
A legacy LIS system doesn’t have modern features like cloud computing and advanced lab analytics, limiting the lab's ability to adapt and change when the business climate calls for it. In cases like these, lab leaders often opt for a short-sighted solution by adding additional software products and intra-system interfaces to fill the gaps. This creates a spaghetti bowl of systems that are costly to maintain and that are susceptible to synchronization issues and inconsistent data. Rather than having one source of informational truth, the LIS becomes a liability and the quality and integrity of the data are unassured.
Cost of Competitive Edge
Thanks to scalability constraints and configuration complexity, legacy LIS systems keep labs from reaching their full potential and are at a competitive disadvantage when compared with their technologically-adept competitors. For example, legacy LIS vendors often charge thousands of dollars for any requested configuration change, and then take weeks and even months to complete the request. Even worse, sometimes these requests are ignored. Adding insult to injury, that same request might’ve taken a matter of minutes with a modern and flexible LIS system that allows lab staff to make these types of changes in-house and without external help.
Cost of Stagnation
Legacy LIS systems are not built to evolve. They are static and rigid, and they model the reality of the time they were built, rather than the present day. Instead of supporting continuous development for the benefit of the lab, this antiquated LIS software creates an artificial ceiling for growth and becomes a liability with time.
Cost of Revenue
Relying on an old laboratory information system most likely also means that the lab will experience a decrease in net collections over time due to revenue leakage. Legacy LIS systems often struggle in terms of laboratory billing integration and code capture thanks to data silos and the need to synchronize among disparate systems. Advanced LIS platforms overcome this by enabling the laboratory billing cycle to start as the order enters the lab, and by offering a suite of revenue cycle management tools (like a demographic check, address validation, insurance discovery, and eligibility verification) that curtail clerical mistakes and reduce the potential for denials.
Learn More: The Power of Integration: Unleashing the Potential of LigoLab Informatics Platform in Your Lab
Cost of Missed Opportunity
Sticking with a legacy laboratory information system prevents a lab from taking advantage of new technologies, such as digital pathology solutions, automation, artificial intelligence, interoperability with third parties and instrumentation, and data analytics. These are examples of how labs can become tech-enabled to enhance their services and improve patient care. In today's competitive healthcare landscape with costs on the rise and margins falling, the ability to innovate is crucial for a lab’s survival. By clinging to old LIS solutions, labs miss out on harnessing these innovative tools to improve their operations and offer more advanced services.
Cost of Compliance and Security
Legacy LIS systems increase the potential for errors and lab data security breaches that expose both the lab and the patient. Additionally, with healthcare’s ever-changing rules and standards, labs equipped with legacy LIS systems often struggle to keep up with the changes, and this can result in non-compliance and regulatory penalties.
Cost of Labor
The lack of modern integration capabilities in legacy LIS systems leads to inefficient workflow and manual processes. Unlike a modern LIS with automation features and maximum interoperability, a legacy LIS likely requires lab personnel to manually enter the lab order and patient data into the system. During processing, lab technicians may also need to redundantly input or retrieve data from multiple sources and manually search through physical records or contact other departments for missing information. Additionally, outdated lab 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 software, and it’s easy to see how a legacy LIS creates unnecessary and time-consuming manual steps that are prone to error and bottlenecks, and that adversely affect processing times
Cost of Frustration
A legacy LIS system can directly affect the morale of lab personnel. Working with outdated LIS solutions that lead to inefficient lab workflows and time-consuming manual processes can decrease job satisfaction and make it much harder for the lab to attract and retain skilled employees.
Cost of Patient Care
Lastly, and perhaps most importantly, is the cost of patient care. In an age where precision medicine is becoming more and more prevalent, having a laboratory information system that can handle complex genomic and molecular tests is crucial. A legacy LIS system that can’t support this type of testing limits a lab's ability to provide the best possible patient care.
Learn More: Comparing LigoLab Informatics Platform with Legacy Laboratory Information System Software
Advanced Laboratory Information Systems Eliminate Bottlenecks and Grow with Your Laboratory
In contrast to a legacy LIS system, a modern laboratory information system offers several advantages, starting with improved efficiency and patient safety and continuing into cost savings and increased revenue opportunities. A modern lab information management system is designed to handle high volumes of complex tests, offering a streamlined clinical lab workflow that reduces errors and automates processes, maximizes connectivity, and improves turnaround times. It can seamlessly integrate with other lab systems minus the data silos and redundant steps that often plague legacy LIS systems, reducing labor costs and enhancing data accuracy. Additionally, a modern laboratory information system platform is designed to support the latest testing technologies and methodologies, like precision medicine and direct-to-consumer testing, enabling the lab to offer the most advanced care to its patients.
Investing in a modern LIS system 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 investing in a modern laboratory information system, labs can ensure they are equipped to handle whatever the future holds, from new testing technologies to increased demand for services.
While the upfront cost of transitioning to a new LIS system can be significant, the long-term savings and benefits like improved efficiency, competitiveness, revenue, and future-readiness far outweigh these initial costs. The real cost, as it turns out, is inaction from the laboratory, a cost that unfortunately only multiplies exponentially over time. For laboratories seeking to minimize threats and thrive in today's fast-paced healthcare environment, the choice is clear: invest in a modern LIS system and leave the outdated LIS system behind.
Your Time is Precious: Let LigoLab Handle Your LIS Transition
In the fast-paced and increasingly complex world of laboratory operations, it's understandable that many labs hesitate to switch to a new 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 there's a hidden and often overlooked cost to this decision - the ongoing inefficiencies, limitations, and missed opportunities for growth that come with sticking to an outdated or inadequate LIS. Ultimately, the time you believe you're saving is probably costing 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 is all about doing the heavy lifting for you. We don't expect you to become IT or LIS 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 understanding your unique workflows, processes, and business needs. This enables us to configure and adapt our LIS platform to mirror your existing operations while introducing efficiencies that drive productivity. Our team handles the data migration, system configuration, and user training. Additionally, our iterative testing and validation processes ensure everything is working as expected before the final switch.
And we don't stop there - we stay with you post-implementation. Our ongoing support and constant system updates ensure you're always at the forefront of laboratory innovation, without additional time or resource investment on your part.
The decision to upgrade your LIS is a strategic move toward greater efficiency, growth, and competitive advantage. Let LigoLab handle the transition, so you can focus on what you do best: delivering exceptional laboratory services. It's time to stop saying, "We don't have time," and start making time work for you.
Ready to discuss how LigoLab can help you navigate the transition with ease? Then let's connect. Click Here to schedule a call with a LIS product specialist.
LigoLab Case Study - Eastern Connecticut Pathology Consultants
“Before our first LigoLab implementation, we were at the mercy of legacy systems that were extremely limiting and rigid. Because of this, 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 standards of service quality by implementing a modern and agile laboratory information system.
