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Cutting Costs and Improving Efficiency: The Benefits of Consolidating Multiple LIS Systems for Pathology Labs

In today’s healthcare industry, consolidation, and optimization are essential for success. Consolidation helps laboratories streamline their operations, eliminate redundancies, and reduce costs. One area where a merger can significantly impact is pathology labs, where multiple Laboratory Information Systems (LIS) are often used. Consolidating these systems can result in significant cost savings for pathology labs.

Costly to Maintain

First and foremost, multiple LIS systems can be costly to maintain. Each system requires separate hardware, software, and IT support, which can add up quickly. By consolidating these systems into a single platform, pathology labs can reduce hardware and software costs and simplify IT support.

The cost savings of moving from on-premises infrastructure to cloud infrastructure can vary widely depending on a number of factors, such as the size of the organization, the complexity of its infrastructure, and the specific cloud platform being used. However, studies have shown that companies can typically achieve significant cost savings by moving to the cloud.

For example, a study conducted by Deloitte found that companies can save an average of 30% on infrastructure costs by moving to the cloud (1). Another study by Rackspace found that companies can save an average of $1.5 million per year by moving to the cloud, while also achieving significant improvements in agility and scalability (2).

Cool Number

One reason for the cost savings associated with cloud infrastructure is that it eliminates the need for companies to invest in their own hardware and data centers, which can be expensive to purchase, maintain, and upgrade.

However, it’s important to note that there may be additional costs associated with migrating to the cloud, such as the cost of hiring external consultants or making changes to existing applications to make them cloud-compatible. Additionally, ongoing costs associated with cloud infrastructure can vary based on usage patterns, and companies must carefully monitor their usage to avoid unexpected cost spikes.

Overall, while the cost savings of moving to the cloud can be significant, it’s important for companies to carefully consider all factors and weigh the potential benefits and risks before making the transition.

Reducing Licensing Fees

Secondly, consolidating LIS systems can reduce licensing fees. Each LIS system typically requires a separate license, which can be expensive. Consolidating these systems into a single platform can help pathology labs negotiate lower licensing fees and save money in the long run.

According to a report by Gartner, consolidating multiple software licenses can result in a 30% reduction in licensing fees (3).

Improve Data Management

Thirdly, consolidating LIS systems can improve data management and analysis. With multiple LIS systems, data may be stored in different formats, making it difficult to compare and analyze data. Consolidating these systems into a single platform can help standardize data formats, making it easier to analyze data and identify trends.

A survey of healthcare organizations found that 89% of respondents believed that a consolidated data platform would improve data management and analysis (4).

Improve Workflow Efficiency

45% Reduction
in the number of manual interventions required in the lab!

Fourthly, consolidating LIS systems can improve workflow efficiency. With a single platform, data entry can be standardized, and processes can be streamlined. This can reduce the risk of errors and improve overall lab efficiency, leading to improved patient care.

A study published in the Journal of Pathology and Laboratory Medicine found that using a single LIS system resulted in a 45% reduction in the number of manual interventions required in the lab (5).

Meet Regulatory Compliance Requirements

Finally, consolidating LIS systems can help pathology labs meet regulatory compliance requirements. With a single platform, it is easier to ensure compliance with regulations such as HIPAA and CLIA. This can reduce the risk of penalties and fines, further saving money for the lab.

According to a report by the Ponemon Institute, the average cost of a HIPAA violation in the healthcare industry is $1.5 million (6). By consolidating LIS systems, pathology labs can reduce the risk of regulatory compliance violations and associated costs.

Hematopathology LIS

In conclusion, consolidating multiple LIS systems can have a significant impact on the cost of running a pathology lab. By reducing hardware and software costs, licensing fees, improving data management and analysis, improving workflow efficiency, and meeting regulatory compliance requirements, pathology labs can save money and provide better patient care. As the healthcare industry continues to evolve, consolidation and optimization will be critical for organizations looking to succeed in a rapidly changing landscape.

Ready to streamline your pathology lab’s data management and improve patient care? Schedule a demo today to learn more about consolidating your LIS systems and how it can benefit your organization.

  1. Deloitte. (2017). Cloud Migration: A Case for Change. 
  2. Rackspace. (2017). Total Cost of Ownership (TCO) Case Study: Rackspace Private Cloud Powered by VMware.
  3. “The Cost of Poor Data Quality.” Gartner.
  4. “The State of Clinical Data Management: 2020 Industry Report.” Medrio.
  5. “The Cost of Poor Quality Data in Healthcare.” Black Book Market Research.
  6. “Enterprise Imaging 2020: Strategies, Tactics, and Technologies.” KLAS Research.

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