Tired of Hidden Charges from Your LIS Vendor?

One of the most common complaints from laboratory executives is hidden charges that they face from their LIS providers.

In our recent LIS State of the Industry Survey, a common theme among respondents was the cost of their LIS and the unpredictable charges they often face.

Laboratory leaders routinely see unexpected charges for:

• Hardware/server upgrades
• Operating system upgrades
• Security updates
• Database upgrades
• LIS software updates

Why Software as a Service (SaaS) is a good choice and how to make sure the system you select is a true SaaS-based LIS

Often lab leaders are told that they are purchasing a SaaS-based lab information system. A true SaaS-based LIS does not have charges for hardware or software upgrades. When researching laboratory information systems, there are a few essential questions to ask to ensure you are truly getting what you pay for.

SaaS-Based LIS License Models 

A true SaaS-based LIS will charge based on the number of lab users or the number of transactions. If the technology vendor uses a “per user” pricing model, make sure you know the definition of a user. For example, are the charges based on named users or concurrent users? A named user license model is based on the exact number of registered users, while a concurrent user software license model is based on the maximum number of users who will use the system simultaneously. Does the LIS provider charge for only lab employees who access the LIS, or does it also include client users accessing results or performing technical/professional (TCPC) splits? This is often another source of “surprise” charges.

Implementation or Development Fees 

Of course, it is common for LIS suppliers to charge implementation fees which can include charges for:

• Test menu set-up
• Workflow set-up
• Report design
• Interfaces (EMR/EHR, Instruments, Bioinformatics software, etc.)
• Historical data migration
• Training
• Development or customization fees

Know your implementation and custom development fees upfront, as well as ongoing expenses so that you are not surprised by exorbitant upgrade charges as your lab grows and expands.

Compliance and Business Continuity

If you are moving toward a comprehensive LIS solution, the supplier you choose should have a documented compliance program and capabilities built into the logic and workflow to help you be compliant. A system that enables an audit trail and that is supported with a business continuity plan is also important. Once again, SaaS providers by their nature, typically include these types of considerations as part of their business model, and it is not an “extra” charge.

LIS services that should be sought include:

• Retention of source documentation for each accession
• Maintenance of data and referential integrity for auditing
• Logs to support customer compliance audits
• Updates to audit log for system changes
• Use of top-tier data centers
• Backing up and archiving designed to achieve recovery objectives
• Secure communications
• Utilization of NIST cyber-security framework
• Effective compliance program

Customer Service 

Finally, your LIS vendor should always provide customer service that is knowledgeable about the LIS software and lab operations. Ensure that your provider has defined service levels, including response times. Customer service should not be an added service that incurs extra charges.

Conclusion 

When a lab embarks on the search for a new LIS, it is imperative that they look for a provider that clearly defines all the charges for their services. There is nothing more annoying than to be surprised by a lot of hidden charges that should be included as part of your service. A true SaaS-based LIS allows the lab to outsource all the hardware and software-related services they used to have to manage themselves, including software upgrades, hardware upgrades, disaster recovery, security, and customer service. Ensure that the LIS solution you choose does not include hidden fees for services you thought were included.

Download the full 2022 LIS State of the Industry Report to see how almost 200 individuals representing laboratories around the U.S. responded to questions regarding satisfaction, reliability, scalability, security, and interoperability.

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