LIS technology generates a strong ROI

Medical Laboratory Observer, Sept, 2006 by Kerry Foster

Louise Rodatz-Ristick, lab manager for Salem Township Hospital in Illinois, also serves a scattered network of clinics in the southern part of the state. "For our very large outreach program, testing is ordered via our LIS Webstation. We do not have to interpret poor handwriting from paper reqs. We get the right coding on orders the first time." Frequently missed in ROI calculations is the testing that can be added because lab personnel have been freed up from administrative/clerical tasks. Rodatz-Ristick says, "Our LIS makes my staff more efficient and gives them time to do more testing. We increased revenue with a new instrument that gave us six new tests."

Carroll says, "With our old LIS and without an interface to our reference lab, we drew samples on Monday and had complete results back to physicians on Thursday or Friday. Now, we draw this morning and have results back by noon." Within hospital settings, this means a reduction in patient bed days and increased efficiency in the emergency department. Wooster asks clients what the average cost per stay is, and what impact waiting on lab results has on the length of stay. "Think of the potential savings if TAT was reduced by 24 hours," she says.

Wooster has found that the biggest difficulty in helping lab managers justify the LIS purchase is access to historic data. Many organizations just are not keeping track of the information, and the amount of write-offs due to medical necessity seems to be one of the toughest figures to track down. Once the cost savings and increased revenue is identified, compare these against the cost of the LIS. Wooster suggests amortizing the cost of the LIS over at least five years and include the cost of annual support and upgrades.

Technology: a good investment

The outdated paper method can easily be improved upon because much of the healthcare information technology available today is mature, offers many features, and can smoothly integrate with other systems. Information systems reduce errors and increase productivity, which is a win-win for both healthcare staff and their patients. When you add to that cost reductions and increased revenue, it is easy to see that an investment in information technology generates a strong return.

Kerry Foster is the director of marketing for Orchard Software in Carmel, IN, which develops, installs, and supports laboratory information systems. Ginger Wooster, MT (ASCP) is an Orchard Software applications specialist, whose clients include the case histories included in this article. Visit Orchard at www.orchardsoft.com or contact Foster at kfoster@orchardsoft.com. A more detailed version of this article