Labs to Get Refunds From New York State Health Department

More than 200 independent and hospital clinical laboratories, including members of the American Association of Bioanalysts (AAB), will benefit from the recent successful conclusion of a lawsuit by AAB and other laboratories against the New York State Department of Health (NYSDOH). The lawsuit charged that the department’s clinical lab evaluation program overcharged clinical labs for inspection and reference fees to subsidize activities that had no relation to the regulation of clinical labs. Under the recent settlement, NYSDOH will refund a total of $18 million. It covers fees paid from 2007-2008 through 2010-2011. In addition, 23 AAB labs that were part of a previous lawsuit (1998-2006) are also entitled to recover a portion of their fees for 2006-2007. This complaint followed a 1999 AAB lawsuit that resulted in a $5 million refund in 2011 to 35 AAB member laboratories. When NYSDOH accounting and billing practices remained unchanged, AAB and individual labs took new action in 2009 to recover the excess fees that continued to be collected each year. The lawsuit was extended through the 2010-2011 fiscal year, until it was just settled, shortly before the setting of a trial date. AAB’s general counsel Jeffrey J. Sherrin of O’Connell & Aronowitz (Albany, N.Y.) handled all three lawsuits against NYSDOH. “Even in difficult fiscal times, the state recognized the need to make the laboratories whole and found the monies to do so, he said. “Hopefully, this brings an end to the need for these lawsuits.”