NEWCENTURYLABSEST. 2014

Can New York Clinics Offer Cash-Pay Labs?

Direct Pay, Service Fee, or Self-Managed: what fits New York 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 New York clinics offer cash-pay labs? Yes, but New York law requires the lab to bill the patient directly, so a clinic cannot buy a test and resell it. Use Direct Pay: the patient pays the lab. Charge only for services your clinic performs.

Three billing workflows

Direct Pay, Service Fee, and Self-Managed Pricing

Simplest starting point

Direct Pay

Patient pays New Century Labs directly for lab testing.

PatientNew Century Labs

Where it fits
Stricter states, Medicare-sensitive workflows, or clinics that want no rebilling burden.
Keep in mind
The clinic never touches the lab bill — New Century Labs bills the patient.
For real clinic work

Service Fee

Clinic may charge a transparent fee for professional/admin services.

PatientNew Century Labs + Clinic fee

Where it fits
Clinics that provide consultation, interpretation, specimen coordination, or care planning.
Keep in mind
Keep the fee tied to services the clinic actually performs.
Requires review

Self-Managed Pricing

Clinic controls patient pricing where state law and payer context allow.

PatientClinicNew Century Labs

Where it fits
Practices in permissive states with counsel-approved billing policies.
Keep in mind
Review with counsel — it may not fit every state or payer context.

Sources differ on New York: billing for an outside lab’s work may be workable when the amount is disclosed to the patient and documented, but the details are unsettled. Use Direct Pay and treat practice-managed pricing as a counsel question.

Recommended starting point for New York clinics

Start with Direct Pay, the cleanest workflow for New York clinics. Self-Managed lab markup is not available here: the lab must bill the patient directly.

New York-specific billing considerations

New York requires the lab to bill directly for lab services. Use Direct Pay. Any clinic fee is limited to separate services the clinic performs. For reference, see New York’s statute, N.Y. Pub. Health Law § 586.

How each workflow fits in New York

WorkflowFit for New York clinics
Direct PayThe cleanest fit: New Century Labs bills the patient directly.
Service FeeOnly for separate services the clinic actually performs.
Self-ManagedNot available: New York requires the lab to bill the patient directly.

Medicare-sensitive workflows

In New York, 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 New York 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 New York clinic charge patients more than the lab’s price?

No. New York law requires the lab to bill the patient directly. Use Direct Pay, and charge only for your clinic’s own services.

What’s the simplest way for a New York 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.

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.