The Dr.s wife, who is not an employee of the facility in which we work, is reorganizing client medical records, taking them hometo work on them and printing up clients lab work at her home. There is no contract with her as a busniss associate. Is this a violation or is it okay since the Dr. lives in the same house?

It's okay as long as she does not share any of the information regarding the patients with anyone. In these trying days, many offices are going to other means, be it a family member or friend, that will help out at no cost to save money.

As long as she does not share any medical information with anyone, she should be fine.