The New York State Department of Health (NYSDOH) will refund $18 million to more than 200 independent and hospital clinical laboratories, including members of the American Association of Bioanalysts (AAB). The refund results from the successful conclusion of a lawsuit brought by AAB and other laboratories alleging that NYSDOH’s Clinical Laboratory Evaluation Program (CLEP) overcharged clinical laboratories for inspection and reference fees to subsidize activities that had no relation to the regulation of clinical laboratories. The settlement covers fees paid to the NYSDOH from 2007-2008 through 2010-2011.
In addition, 23 AAB laboratories 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 laboratories commenced a 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. It was settled shortly before a trial date was to be set.
Mark S. Birenbaum, PhD, AAB’s administrator, says, “AAB is glad we were able to lay the groundwork and assist our members and other laboratories in New York to recover the fees that continued to be wrongfully charged to them. We have successfully fought this battle in three separate lawsuits.” Learn more about AAB.
