Building vs. Buying Laboratory Information Systems (LIS): Dispelling Some Common Myths

Why don’t we build a laboratory information system (LIS) rather than buying LIS software from an established, commercial  LIS company? After all, we can tailor the medical LIS to meet all our lab’s specific, unique needs, and we can support it and make necessary changes with our in-house IT staff. Moreover, the laboratory information system software will be much less expensive and we can also license it to other medical labs and generate revenue from it.

Sounds great, right? So what’s wrong with this scenario?

In short, it’s a common myth rather than reality because while building a lab information system from scratch seems cost-effective initially, hidden costs like ongoing maintenance, regulatory compliance, security updates, and scalability can make it much more expensive than LIS systems offered by LIS software vendors in the long run. 

This is the first of many building vs. buying myths I hope to dispel to set the record straight and help lab directors and managers make informed decisions about pathology lab management system software for the good of their organizations. 

Learn More: Pathology Lab Management 2025 Guide: Best Laboratory Information System Software and Practices

Building vs. Buying: Laboratory Information System Functions 

Some lab directors and managers still believe they can build and tailor their home-grown lab information system to meet all lab-specific, unique needs and that this can be sustained long-term.

While this was more or less true many years ago when commercially available LIS systems were limited in scope and complexity, thereby justifying specialized labs building their own LIS software, that’s no longer the case today. 

Commercial laboratory information systems have become broader in scope and functionality and virtually every lab operation that once had a homegrown lab information system has since replaced it with a vendor-produced LIS lab solution. 

Today, the best LIS pathology software offers labs considerable flexibility for configuring specific clinical lab workflow. Usually, the “unique” needs are few and can be accommodated by a few “specialized” programs or parameterizations.

Learn More: Leveraging LigoLab for Optimal Return on Investment: An LIS System Guide for Lab Directors

Building vs. Buying: Laboratory Information System Support

The thought that a lab’s in-house IT staff will be able to support and manage the homegrown medical laboratory information system is another myth that needs to be dispelled.

While this presumption can be true for a while, assuming the in-house healthcare LIS is very well documented (rarely the case) and the lab’s key IT staff won’t “jump ship” for another job, leaving the lab without critical LIS system support. 

Should knowledgeable IT and LIS staffing leave, finding replacements who can understand the diagnostic lab software, as written, can be very difficult.

Learn More: LigoLab’s Approach to LIS System Implementation and Support

Building vs. Buying: Laboratory Information System Hidden Costs 

As a former programmer and laboratory information system software development manager, I can tell you that nothing is more underestimated than what it takes to develop a new homegrown lab pathology software.

The time to complete pathology software development ranges from nearly twice as long as estimated to never (when the lab “throws in the towel” and gives up). Likewise, the personnel costs in dollars and reduced IT support and services for other lab information system needs impact both lab finances and operations.

Learn More: What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company

Building vs. Buying: Laboratory Information System Licensing

Now let’s turn our attention to the common myth of licensing homegrown LIS systems and generating revenue from them.

This is an unlikely scenario. Examples of laboratory information systems built to meet the specific needs of a particular lab will likely not be a good fit for other labs, and some changes would have to be made, regardless. 

Unless homegrown LIS systems were developed with inherent flexibility for change (rarely, if ever, done) all such changes would require programming rather than simple configuration parametrization. 

Further, lab information system documentation would need to be thorough and understandable to the IT staff of the purchasing lab (again, unlikely). In addition, what level of support would your lab be able to provide the buying lab? You can be assured that there will be many questions and requests for help. Your IT staff would have to expand (more cost) to avoid being overwhelmed.

Learn More: Stability and Performance: The Two Most Important Aspects of a Modern Laboratory Operation

Building vs. Buying: Final Thoughts 

In olden times, when laboratory information systems were less flexible, less functional, and less cost-effective, in-house LIS software development might have been justifiable. Today, however, many established and reputable laboratory information system companies can expertly provide the functionality, service, support, and flexibility to cost-effectively meet the needs of labs of any size and complexity. 

Don’t fall victim to common myths. 

While building homegrown laboratory information system software may seem cost-effective if you dig a bit deeper it becomes clear that hidden costs will most certainly arise. 

With the laboratory landscape evolving rapidly, relying on vendor-supported LIS system software ensures faster implementation, better security, regulatory compliance, and ongoing innovation, making it the more sustainable choice for most laboratories.

Consider carefully the options for building vs. buying a new LIS system and make an informed choice.

On-Demand Webinar: Has Our Laboratory Outgrown its Laboratory Information System? 

Dennis Winsten & Associates 

Dennis Winsten is the president of Dennis Winsten & Associates, an independent healthcare information systems consulting firm headquartered in Tucson, Arizona. With over 40 years of computer experience, including more than 30 years in healthcare systems, Mr. Winsten has established himself as an expert in the field. 

He holds the designations of MS, FHIMSS, and FCLMA, reflecting his extensive knowledge and contributions to healthcare informatics. His firm specializes in optimizing clinical information systems within complex computing environments, providing valuable insights and solutions to healthcare organizations.

Mr. Winsten is also a respected industry thought leader and regular contributor of Industry Insights articles at LigoLab.com. 

Learn more at www.dwinsten.com.