Institutional factors for customer satisfaction of health services depict the extent to which individuals feel about the services rendered by the healthcare system. Moreover, the judgment of patient is the manifestation of the fulfillments of their expectations. This category of factors include quality of services, cost effectiveness, timeliness, cleanliness, availability of onsite basic facilities, behavior and attitude of personnel dealing with patients and other onsite services rendered by the hospitals. The assessment of customer satisfaction of institutional factors will help healthcare system to make required changes. Objectives: The present study is aimed to assess the satisfaction level of patients availing laboratory services rendered by the central Biochemistry lab in a tertiary medical college hospital and to associate the same with the institution based factors contributing to their satisfaction. Methodology: The cross sectional study is based on a random sample of 330 patients availing services of Biochemistry laboratory in a tertiary hospital. The questionnaire based survey method used Likerts’ scale technique to assess satisfaction level on different institutional factors. The simple frequencies against each points on the scale and corresponding percentages were worked out. Results: Total satisfaction was reported by 84.8% patients for cleanliness and hygiene at sample collection point, by 76.7% patients for behavior of staff at report collection point, by 90.16% patients for time spent at sample collection point, by 69.39% patients for cost incurred for the test, by 73.03% patients for turnaround time and by 90% patients for availability of dustbins as amenities provided by the hospital. The low rate of total satisfaction on cleanliness and hygiene of toilets (22%) and about 20.4% patients reporting the same as either dissatisfied or totally dissatisfied indicates the need to take immediate steps to rectify the situation. Summary: The patients were highly satisfied with the cleanliness and hygiene at all point except toilets. Majority of the patients were totally satisfied with the behavior of staff, time spent for the test, cost of test, quality of laboratory services and amenities and facilities available at laboratory site