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135230 1 (1988-02-29)

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United States
General Accounting Office
Washington, D.C. 20548

Human Resources Division                          135230

H8-0111

February 29, 1988

The  Honorable Ron Wyden
Chairman,  Subcommittee  on Regulation
   and Business Opportunities
 Committee on Small Business
 House of Representatives

 Dear Mr. Chairman:

.In response to your January  5, 1988, request and later
discussions  with your  office we are providing information on
the  states' regulation  of clinical laboratories.  There are
three  types of  laboratories subject to state regulation.  They
are  independent, hospital,  and physician office laboratories.
It  is estimated  there are at least 90,000 of these laboratories
in  operation  in the United States.

In  doing our work  we relied primarily on a review of the
Laboratory  Regulation  Manual, published and updated
periodically  by Aspen  Publishers, Inc.  This manual covers  all
aspects  of federal  and state laboratory regulation.  The  infor-
mation  we analyzed  was current as of January 1987 and does  not
reflect  changes  in state laws and regulations since then.  We
also  contacted program  offici4ls in 11 states to obtain  further
clarification  concerning  the extent of state regulatory
requirements   for the three types of laboratories.  In  analyzing
state  regulatory  programs we considered five elements  to be
most  important.   These are licensure, proficiency testing
programs,  quality  control programs, personnel requirements  and
standards,   and inspection authority.

We  found that  as of January 1987, the regulation of  clinical
laboratories  varied  among the 50 states for the 3 categories  of
laboratories. For example:

--  Thirteen  states did not regulate independent laboratories.

--  Seventeen  states issued licenses to hospital  laboratories as
    separate  entities while 23 additional states required
    licensed  hospitals to have laboratories that met  certain
    requirements.






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