The health care industry is one of the largest sectors of our economy, as well as one of the most heavily regulated. Providers of health care services such as hospitals, clinics, nursing homes, and clinical laboratories, are subject to myriad federal and state laws and regulations. These laws and regulations constitute a legal minefield, and as everyone knows, walking through a minefield without a guide can have disastrous results. Accordingly, we try to enhance providers’ awareness of their legal obligations by periodically reviewing laws with which they should be familiar.
This column reviews a New York law that has been in effect for more than 40 years, and that applies to all clinical laboratories licensed by the State of New York, no matter where the lab is physically located. Clinical laboratories and referring providers that are unaware of this law, or ignore it, do so at considerable risk. Known formally as the Laboratory Business Practices Act (LBPA), the law is found in New York Public Health Law §§585-588.1
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