Selecting and implementing a laboratory information system (LIS) is a big decision, and making the wrong choice can be costly from both a financial and staff-satisfaction perspective. The intricacies of how a lab works and the various workflows involved make it vitally important to think carefully about what you need your new LIS to do and how it fits into your organization’s budget. Determining the solution’s return on investment (ROI) is a helpful method to ensure you are making the best decision.
Executive Summary
ROI compares the cost with the anticipated rate of return and is a common tool used to determine the validity of an investment.
Selecting an LIS with a lower up-front cost is not always the least expensive solution over the long-term, especially for labs that need vendor expertise and custom LIS functionality.
Orchard’s LIS solutions offer a solid ROI because they are built based on feedback from laboratory customers and offer a multitude of tools that improve lab efficiency and productivity.
Value of Selecting the Right LIS
The LIS automates a tremendous portion of laboratory workflow and is a vital tool in the modern laboratory. Decision support rules automate and standardize tasks to increase efficiency and productivity, which allows laboratory scientists to complete other, more complex duties. LIS integration with laboratory analyzers, EHRs, billing, reference labs, and other information systems can eliminate expensive middleware, improve turnaround time (TAT), and speed diagnosis, resulting in improved patient care. The value of a strong, reliable LIS cannot be understated.
However, all LISs are not created equal. You need to find the best fit and value for your laboratory. Because the LIS is at the center of everything you do in your lab, you must invest in a quality system. Selecting the least expensive solution can be extremely expensive (and difficult) in the long run because you trade functionality and vendor expertise to get a less expensive system.
Cost is always an important consideration but should not be the only factor in your decision.
Calculating LIS ROI
Looking at ROI is a common way to consider the financial cost of an investment. ROI compares the cost with the anticipated rate of return—how much “bang for your buck” you will get from your purchase. To make a sagacious decision, you must identify and understand the pain points not only in the lab but also at the organization’s administrative level.
Calculating ROI can be tricky because some benefits are intangible. For example, the LIS’s technology and automation provide improvements to employee and provider satisfaction, procedural efficiencies, use of resources, personnel productivity, and patient care. With that caveat, you must calculate your potential ROI based on known parameters that the LIS will improve, such as staff hourly wages per task time.
In addition to the LIS tools and functionality, carefully consider which vendor will be the best for your organization to partner with. As part of your ROI study, research the LIS vendors you are considering to determine who will provide the best support for your LIS, and ultimately, who will be the best fit.
Orchard Software’s LIS Solutions Offer a Positive ROI
Orchard’s LIS solutions are built based on feedback from laboratory customers and offer a multitude of tools that improve lab efficiency and productivity. Orchard’s solutions provide connectivity, comprehensive quality control (QC), sample tracking, and data mining. Orchard’s solutions improve overall workflow and TAT by using rules to create a paperless process from order entry to result delivery.
Orchard can provide a single solution that includes support for clinical, pathology, microbiology, toxicology, molecular, point-of-care, and outreach. Orchard offers the option of hosting the system in your data center or providing AWS hosting services. Orchard® Cloud Services provide a secure environment for your LIS that strengthens system security, increases reliability, and simplifies maintenance—allowing you to focus on patient care.
Areas of Cost Savings with Orchard’s LIS Solutions
Orchard Software offers two LIS solutions—Orchard® Enterprise Lab™ and Orchard® Harvest™—so that you can select the best fit for your lab. Orchard Harvest maximizes process automation and decision-support technology to improve workflow efficiency, reduce errors, and increase the value of lab services to providers and patients. Orchard Enterprise Lab is designed to integrate and support high-volume, complex laboratories using aggregated patient data, advanced analytics, and workflow design to support laboratory stewardship. Below are some specific areas in which Orchard’s solutions positively affect lab ROI and should be considered as part of your ROI calculation for a LIS.
 |
RegulatoryEvery lab order and result is tracked within the LIS, which means your lab’s data is readily available during an inspection. Orchard’s solutions include sample tracking and extensive QC and quality assurance (QA) tools to help you maintain your lab in an inspection-ready state. |
 |
EfficiencyWith ongoing, industry-wide laboratory staff shortages, a focus on efficiency should be an important part of any LIS implementation. Orchard Enterprise can perform numerous tasks on multiple orders or samples simultaneously, tracking progress throughout the testing continuum using workflows that you design and create with Orchard’s workflow engine. Both Orchard Harvest and Orchard Enterprise solutions offer decision support rules that automate and standardize complex processes to boost lab efficiency. |
 |
Productivity & ScalabilityGreater efficiency leads to greater productivity. Lab staff are able to complete more complex tasks because the LIS takes care of the routine tasks. Orchard’s LIS provides the scalability labs need to expand testing volumes and disciplines, enabling organizations to grow and thrive. Orchard’s solutions speed accurate result delivery, which accelerates diagnosis, treatment, and enhances overall patient care. |
 |
ConnectivityLaboratories need to be connected as part of an interoperable system to achieve rapid result delivery. Orchard Software’s integration and interfacing capabilities are far superior to its competitors. Orchard can provide seamless connectivity between laboratory equipment and third-party information systems—which quickens provider communication and boosts overall patient outcomes. Often, cumbersome middleware can be eliminated with Orchard’s proprietary device engine connectivity. |
 |
Quality Assurance & Patient SafetyAt the core of each process, laboratories are focused on ongoing QA and patient safety. A myriad of workflow tools that allow laboratories to track their QA and continue to improve their processes are found in Orchard’s LIS solutions. Tools like embedded audit logs, data mining, specimen tracking, and bar codes help standardize procedures, reduce errors, and improve patient safety. |
 |
Cloud-hosted Data SecurityCloud-based solutions can increase the security of protected health information. Offloading the bulk of security measures to a cloud vendor makes data more secure and reduces the burden on the organization’s IT staff. Healthcare organizations (HCO) that use a cloud-based information system can obtain a cost-effective IT solution without the capital layout for internal IT staff to maintain the infrastructure. A subscription service eliminates cost peaks that occur across time. Cloud systems increase data redundancy and system availability (or uptime) by automating backups and disaster recovery options. This added data protection means that an HCO does not lose vital patient data and can minimize downtime. Any of Orchard’s systems can be hosted in a cloud environment. |
 |
StandardizationStandardized processes and procedures reduce errors and save precious time. Orchard’s LIS solutions can standardize your processes and automate manual steps to save time and reduce errors. Tools such as decision support rules can auto-verify results, automate reflex testing, route tests to appropriate labs, and more. |
 |
Data Mining & AnalyticsAs part of continuous quality improvement, laboratories need to track key performance indicators. Orchard’s structured data format and intuitive data mining tools allow you to schedule and deliver administrative reports, or you can upgrade to Orchard® Insights® for deeper insights into your laboratory’s productivity and your community’s health trends. |
 |
ReimbursementImprove your lab’s revenue by gaining control of reimbursements. Orchard’s solutions contain tools like insurance verification, which integrates and sends patient insurance information to third-party insurance vendors for analysis. This tool reduces billing discrepancies and allows labs to seamlessly perform insurance verification prior to claim submission—reducing rejected claims and improving billing efficiency. Orchard’s solutions also help with staff shortages and reimbursement decline with tools that streamline and automate billing and complex workflows. |
Determining Benefit & Costs
ROI compares benefits and costs. As noted, benefits can be less tangible than costs, making it more difficult to assign a dollar value. In assessing the ROI of an LIS, benefits include advanced process automation that improves efficiency, reduces errors, and increases reimbursements, the extent of which may be difficult to measure. However, without an LIS, manual processes are time-consuming and prone to human error, which can lead to incorrect results, safety concerns, and reimbursement delays. With Orchard’s LIS solutions, you can be assured of a strong ROI, both financially and in improved patient care.
In order to perform a ROI analysis, you need to determine the cost of your LIS. Below are cost items that you need to consider when evaluating an LIS. Include both initial costs and ongoing annual fees for system support and maintenance. Once these figures are determined, you can then compare costs against savings achieved by the LIS.
- System investment (licenses)
- Service and support
- Cloud service fees
- Implementation costs
- Interface costs
- Training fees
ROI Calculation
The ROI formula relies on accurate cost accounting. There are several ways to calculate ROI. Traditionally, ROI is expressed as a percentage; divide the net income or benefit of the investment by its cost.
ROI = (net income or benefit / cost) x 100
Returns from an investment can be positive or negative. A positive ROI is considered good and ROI greater than 10% is considered strong. Conversely, a negative ROI means that the total cost exceeds total returns.
ROI Examples for Different Types of Labs
As an example, the following tables show some specific savings realized at an established, large physician office laboratory with multiple locations and multiple testing disciplines (clinical, pathology, and microbiology). Salary averages are from the Bureau of Labor Statistics and the National Society for Histotechnology.1,2
Savings in the example total $546,910, so if the LIS purchase is $1 million, the ROI calculation would look like this: (546,910/1,000,000) x 100 = 55.
Using a range of hypothetical LIS cost estimates, demonstrated in the table to the left, you can see that the savings presented are so significant that even at an LIS cost of $2 million, there is a strong positive ROI.
| Hypothetical LIS Cost ($) | ROI (%) |
| $2,000,000 | 27% |
| $1,500,000 | 36% |
| $1,000,000 | 55% |
| $800,000 | 68% |
After implementing an Orchard LIS, the lab in the example saw improvements in:
- Productivity
- Test volumes
- Turnaround times
- Accounts receivable
- Test interpretation
- Patient and provider satisfaction
- Reduced paper and waste
- Patient safety
Savings Based on Orchard Software LIS Implementation |
|||||
| Staff Title | Hourly Wage ($) | Task Duration (Hours) | Task | Annual Savings ($) | Benefits |
Clinical Laboratory |
|||||
Pre-analytical |
|||||
| Medical Laboratory Scientist (MLS) | 29 | 12 | Receiving Samples | $90,480 | – Increase test menu |
| Phlebotomist | 20 | 2 | Sending labels to lab | $10,400 | – Time for other office tasks |
| Phlebotomist | 20 | 0.5 | Label printing rules | $2,600 | – Reduce risk – Improve patient safety |
| Phlebotomist | 20 | 6 | Destination routing and order entry rules | $1,560 | – Recover lost billing errors – Increase test revenue by proper routing – Reduce cost associated with duplicate orders or incorrect tubes |
| Phlebotomist | 20 | 1.5 | Frequency error rules | $390 | – Recover lost billing |
Analytical |
|||||
| MLS | 29 | 9 | Auto-verification rules (release normal values) to replace manual process | $67,860 |
– Increase testing volumes and test compendium |
| MLS | 29 | 5 | Improved instrument interfaces | $37,700 |
– Focus on other testing |
| MLS | 29 | 2 | Automate manual reports for QC and QA | $15,080 |
– Focus on other testing |
Post-analytical |
|||||
| IT Manager | 81 | 0.75 | Interface Management; Eliminate other interfaces/middleware | $7,410 | – IT efficiency |
| MLS | 29 | 1 | Update manual test and result data process | $7,540 | – Improve lab management satisfaction |
| MLS | 29 | 2.5 | Improved processes for billing capture with automated rules | $975 | – Recover lost billing – Improve Accounts Receivables |
| Total Savings for Clinical Laboratory Department | $241,995 Annual Savings |
– Increased productivity – Increased test volume – Recovered lost billing – Reduced patient risk – Improved provider satisfaction |
|||
Savings Based on Orchard Software LIS Implementation |
|||||
| Staff Title | Hourly Wage ($) | Task Duration (Hours) | Task | Annual Savings ($) | Benefits |
Anatomic Pathology Laboratory |
|||||
Pre-analytical |
|||||
| MLS | 12 | 12 | Manually receiving samples (replaced with bar code scanning) | $90,480 | – Improve patient safety – Increase test menu – Improve TAT |
| Histologist | 3 | 3 | Sending samples to pathologist | $22,620 | – Take on other office tasks – Reduce risk/improve patient safety – Improve case efficiency |
| Histologist | 29 | 2 | Destination routing and order entry rules | $780 | – Recover lost billing – Increase test revenue by proper routing – Reduce cost associated with order errors |
Analytical |
|||||
| Pathologist | 130 | 1 | Auto-verification rules (release normal values) to replace manual process | $33,800 |
– Increase testing volumes and test compendium |
| Pathologist | 130 | 1 | Find a case via bar code | $33,800 | – Improve patient safety – Improve efficiency |
| Pathologist | 130 | 1 | Auto-attach clinical results to create a complex patient report | $33,800 | – Improve provider, pathologist, and patient satisfaction |
| Pathologist | 130 | 1 | Combined CP and AP database | $33,800 |
– Improve provider, pathologist, and patient satisfaction |
| Pathologist | 130 | 1 | Online special stain orders | $33,800 |
– Improve provider, pathologist, and patient satisfaction |
| Histologist | 29 | 1 | Block-slide verify/send-out reconcile list | $9,425 |
– Reduce risk/improve patient safety |
| IT Manager | 81 | 0.25 | Tracking and remediating interface errors | $2,470 |
– IT efficiency |
Post-analytical |
|||||
| Histologist | 29 | 1 | Data mining | $7,540 | – Improve lab management satisfaction |
| Billing Tech | 23 | 8.7 | Billing processes (automated with billing rules) | $2,600 | – Recover lost billing – Improve accounts receivables |
| Total Savings for Anatomic Pathology Department | $304,915 Annual Savings |
– Increased productivity – Increased test volume – Recovered lost billing – Reduced patient risk – Improved provider satisfaction |
|||
| Total Laboratory Savings Attributed to Orchard LIS |
$546,910 (Annual Savings) |
Form a Strategic Partnership with Your LIS Vendor
Laboratories need a strategic, long-term partner, focused on the diagnostic laboratory and the structure of the data it provides. Orchard Software’s integrated diagnostic platform, structured data framework, and superior connectivity capabilities are what leaders in the lab industry need to showcase their value.
Partnering with Orchard Software
Partnering with Orchard Software provides a superior ROI for customers who invest in its platform in several ways. First, Orchard is committed to the laboratory and its mission to support best patient care. Orchard has a deep understanding of the industry. It’s committed to continued innovation, investing in improvements, and growing its products based on changing industry needs.
Secondly, Orchard has more than 30 years of experience designing, developing, and implementing its lab software products. This means that Orchard’s products have more than 30 years of laboratory professional knowledge built in, resulting in superior, highly configurable, highly flexible, and reliable products that offer an unparalleled number of features and functionality. In addition, Orchard offers an unmatched skill in system integration with thousands of interfaces to myriad devices and third-party systems in its repertoire.
Lastly, Orchard’s team has been recognized for many years for its excellent customer support. Orchard’s team is proud of the service and support they provide and proud of what its customers do as an integral part of the healthcare system. Orchard’s support team is highly motivated and genuinely wants to help its customers succeed.
Orchard Software Ranked #1 LIS Vendor
Orchard Software was ranked as the top LIS vendor in the 2024 Black Book Market Research User Survey. Black Book™ annually evaluates LIS vendors across 18 key performance indicators from the perspective of the client experience. Survey results are independent and unbiased from vendor influence with more than 2.5 million healthcare technology users invited to contribute.
Orchard Software ranked #1 in the following 13 categories:
- Strategic alignment between vendor and provider client goals
- Innovation
- Training
- Client relationships and cultural fit
- Trust, accountability, ethics, and transparency
- Breadth of offerings, varied client settings, delivery excellence across all user types
- Deployment and mid-RCM solution implementation and system-wide standardization
- Integration and interfaces
- Reliability
- Brand image and marketing leadership and communications
- Viability and managerial stability
- Support and customer care
- Best of breed technology and process improvement
Consider the ROI of an Orchard LIS Solution
Any decision as significant as an information system that you will likely use every work day for years needs to be taken seriously. Using ROI as a tool, you can compare the cost of your LIS with the anticipated rate of return to help validate your investment. A selection solely based on price does not take all factors into consideration and may actually cost you much more in the long run.
Orchard Software is laser-focused on the laboratory and the tools labs need to contribute to best patient care. Orchard’s LIS solutions offer a strong ROI because they are built based on feedback from laboratory customers for maximum functionality and configurability. This ROI is bolstered by the fact that Orchard genuinely cares about our customers, their mission, and the products and service we provide. Orchard strives to continue to update and improve our product offerings to give laboratories superior tools to achieve their goals.
References
- Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook. https://www.bls.gov/ooh/.
- National Society for Histotechnology. How much does a histotechnologist make? https://www.nsh.org/about/about-histotechnology/histotech-salary.
