Does Money Matter in the Long Run when Upgrading LIS from Legacy to Modern

How Much Do Legacy Lab Information Software Systems Cost Labs Today?

Legacy laboratory information software (LIS) are outdated systems that were typically developed in-house decades ago, or purchased off-the-shelf. Since then, both of these types of systems have become obsolete because of issues with scalability, flexibility, and connectivity with the lab’s equipment, the institution’s electronic health and medical records (EHR and EMR), and various healthcare and government organizations. Another crucial factor is system maintenance: large companies end up spending up to a colossal 80% of their total IT budget as maintenance costs of these legacy systems.


Moving an older system isn’t just about the cost of the hardware and software … It will be expensive, but when you look at what the legacy system is costing you 2-3-4 years down the road, we have seen most of these able to pay themselves off in a 2-to-3 year period. It’s definitely worth having that conversation and I think the CFO needs to be a part of that conversation.” Shawn McCarthy, Research Director, IDC Government Insights


 Despite knowing the issues surrounding legacy systems and heightened competition for customers, several issues deter lab owners and managers to move forward with upgrading to a new and better Laboratory Information Management Software. First and foremost are the upfront costs associated with the upgradation of the system. Other issues include regulatory constraints, and disruption of lab operations while the system is being upgraded. The economic fallout of the COVID-19 pandemic is also an important consideration in conducting any such cost-benefit analyses.

Transactional Pricing Model Addresses Cost Issues Related to System Upgradation

From 2021 onwards, the way to go is a scalable, growth-driven, and transactional pricing model. What are the features of such a model?


This model does not levy large and upfront capital payments on the buyer. The LIS management system comes pre-loaded with options without excessive licensing fees. The cost per test is linked to the lab’s volume of work. So, as the lab grows, increasing its work by expanding its client base, its test volumes go up. Since the cost is linked with the volume, such expanding work volumes bring the price of running tests down. This pricing model allows labs to grow and scale while minimizing risk at the same time.


Step-wise Methodical Approach Minimises Operational Disruption while Upgradation

The risk of disruption of lab operations can be mitigated by a step-wise implementation plan using professional experience and eye-for-detail in replacing and importing data from a variety of different system sources, as well as migrating all existing interfaces.


The LIS Laboratory Software Systems of choice is meticulously designed to guide the laboratory at every stage of this transition – from domain analysis to go-live, keeping all stakeholders involved in the process throughout at every stage. Moreover, additional important factors to consider while switching to a modern LIS management system is how much hands-on experience their technical team has priorly of conducting such complex tasks smoothly and efficiently.


LigoLab Lab Information System Software addresses these concerns with a lab-friendly pricing model for its LIS & Revenue Cycle Management (RCM) Laboratory Operating Platform. This also comes with an experienced team with a track record of successful system migrations. They can also manage HRSA compliance.


A trusted ‘front end’ add-on integration tool, TestDirectly’s Direct-to-Customer Platform helps streamline workflows, supporting the ‘back end’ LIS Lab Information System at every stage of specimen handling and processing. The platform also improves turnaround time (TAT) by expediting lab results distribution by removing bottlenecks associated with manual-based legacy LIS systems.


Did you know the price the US healthcare sector pays every year due to errors in medical billing? The answer is $125 billion per year. So, one way of looking at the need to upgrade your Laboratory Management Software System is to conduct a cost-benefit analysis of what is it costing you to run and maintain your current legacy LIS system. While it is true that the decision to upgrade to a new LIS is a significant one since it requires additional costs and operational disruption, but the upside is saving a significant amount of money down the line. Availability of flexible and growth-driven, future-ready financing solutions in the market is a bonus.