Danielle: by "scanning through photoshop" I take it you mean you're using the Twain-import function? I haven't touched that in so many years I don't even know it's there anymore! If memory serves, that would bring up the scanner driver.
I scan exclusively through Vuescan Pro - in my opinion the best and only remaining desktop scanning software. Over the years I've typically scanned into raster image formats (TIFF, JPEG, etc) but as of late I'm learning more about scanning in RAW as that seems to allow maximum flexibility and possibly making use of RAW image management software (Aperture, LR, etc) for cataloging. I virtually never 'edit' images in LR or equivalent as these are just too limited for my taste.
As for outsourcing scanning to labs, sadly that's really the way it seems to be going nowadays as fewer-or-no native film scanners are being manufactured for purchase.