Direct Pay
Patient pays New Century Labs directly for lab testing.
PatientNew Century Labs
Can Michigan Clinics Offer Cash-Pay Labs?
Direct Pay, Service Fee, or Self-Managed: what fits Michigan practices, and where to start.
New Century Labs supports all three billing workflows: Direct PayService FeeSelf-Managed Pricing
Educational overview, not legal advice · Last reviewed July 2026 · Choose a starting point here, then confirm it with counsel.
Plain-English answer
Can Michigan clinics offer cash-pay labs? Yes, but Michigan law caps what you can charge at the lab’s own price. No markup. Use Direct Pay or pass the lab charge through at cost, and bill your clinic’s own services separately.
Three billing workflows
Direct Pay, Service Fee, and Self-Managed Pricing
Service Fee
Clinic may charge a transparent fee for professional/admin services.
PatientNew Century Labs + Clinic fee
Self-Managed Pricing
Clinic controls patient pricing where state law and payer context allow.
PatientClinicNew Century Labs
Michigan bars billing a patient more than the lab itself charged, and the rule covers routine clinical testing, not just pathology. Direct Pay keeps Michigan clinics cleanly out of the lab-billing chain.
Recommended starting point for Michigan clinics
Start with Direct Pay. If you rebill, pass the lab charge through at cost. Your margin comes from a Service Fee for your own work, never from the lab test.
Michigan-specific billing considerations
Michigan bars marking up outside lab work. Use Direct Pay, or pass the lab charge through at cost. Charge for your own services separately. For reference, see Michigan’s statute, MCL 445.161.
How each workflow fits in Michigan
| Workflow | Fit for Michigan clinics |
|---|---|
| Direct Pay | Recommended, or pass the lab charge through at cost. |
| Service Fee | Fine for the clinic’s own separate work; no profit on the lab service. |
| Self-Managed | Not permitted: Michigan caps the charge at the lab’s own price. |
Medicare-sensitive workflows
In Michigan, Medicare patients usually mean Direct Pay with any clinic fee separate and documented. New Century Labs’ cash-pay workflow is intended for non-covered or patient-requested testing where Medicare is not billed; covered, medically necessary services require a different billing analysis — see our Medicare guide.
Common questions
Can Michigan clinics offer cash-pay lab testing?
Yes. The real question is which billing workflow, not whether. Most clinics start with Direct Pay: the patient pays the lab directly.
Can a Michigan clinic charge patients more than the lab’s price?
No. Michigan law caps your charge at what the lab charged. Bill your own services separately.
What’s the simplest way for a Michigan clinic to start?
Direct Pay. The patient pays New Century Labs directly and there is nothing to set up. Add a separate service fee for your own work where appropriate.
Sources & review notes
Written by New Century Labs and reviewed for operational accuracy by the New Century Labs team — not reviewed as legal advice. Last reviewed July 2026; laws and payer rules may change. Confirm the right workflow for your practice with your healthcare counsel.
Explore the cluster
Where to go next
Next step
Talk through the right cash-pay lab workflow for your practice.
Pick the workflow that fits your state and your practice. We’ll help you compare Direct Pay, Service Fee, and Self-Managed Pricing, then confirm it with counsel.