Closing a Practice Doesn't End Patient Responsibilities
For most small business owners, closing up shop is relatively simple -- perhaps they take down their signs, get rid of inventory and turn the lights off. But for a health care practitioner closing a practice, the issues are more complex.
You have a duty to preserve medical records and ensure your patients have access to them. There may even be liability issues after your death that must be addressed in your estate plan.
If you sell your practice, the buyer should agree in writing to store your patients' medical records for a specific period of time, ideally the length of your own legal responsibility for them.
If, however, you are retiring, or for some other reason, decide to dissolve your business, you must notify your patients in writing. You must also have a plan to keep the records and send copies as requested until the state statute expires.
In general, you should send a letter to all active and inactive patients 90 days before the last date your practice is operating. This allows patients to find another doctor without disrupting their care and to have their records transferred.
Your letter should include:
When planning your estate, keep in mind that medical records are assets. Your obligations to patients don't end with your death.
The executor or administrator of your estate must preserve medical records because they can be crucial in protecting the estate from negligence claims. The records must generally be kept for the duration of your state's statute of limitations for medical malpractice -- unless patients are minors. In those cases, the records must be stored until the patients are 18 years old. Investigate whether your malpractice insurance covers you throughout that period.
Your estate should notify all current and former patients and tell them how long it will keep their records and how they can gain access to them. Get professional help to make sure you comply with these matters in your jurisdiction.