Closing A Medical Practice Checklist

There comes a time when a practice must close, whether unplanned due to death or disability or planned due to retirement or relocation. At that point certain things need to be done to ensure a smooth transition for patients as well as the physician or spouse.

Notifications
(60 to 90 Days Prior to Closing)

Staff

* Organize a meeting to inform employees about the closure.
* Prepare to hire temporary staff if necessary.

Medical Records Custodian

* Select a qualified medical records custodian to manage and retain patient records post-closure.

The Public

* Publish announcements in local newspapers.
* Post signage in the office about the closing date.

Professional Associations

* Notify relevant medical and licensing boards.

Drug Enforcement Agency (DEA)

* Inform the DEA of your plans regarding your registration.

Hospitals

* Notify hospitals where you have privileges.

Health Insurance Companies

* Inform all contracted payers of the practice closure.
* Provide a forwarding address for post-closure payments.

Ancillary Services

* Contact referral services (labs, imaging facilities) about the closure.

Suppliers/Service Contracts

* Notify suppliers and service providers.
* Request final statements to close accounts.

Other Physicians

* Inform colleagues and referral partners of your decision.

Utilities

* Notify utility service providers of the closure date.

Notifications
(30 to 60 Days Prior to Closing)

Patients

* Send a notification to patients about the closing date and reason.
* Include a medical records transfer authorization form.
* Place a copy of the notification in each patient’s medical record.

Tasks
(30 to 60 Days Prior to Closing)

Patient Scheduling

* Stop accepting new patients.
* Limit non-emergent appointments and refer ongoing care patients.

Accounts Receivable

* Collect outstanding payments.
* Consider using a collection agency post-closure.

Insurance Policies

* Review and update or cancel insurance policies.
* Obtain tail coverage if necessary.

Medical Records

* Arrange secure retention of medical records (both paper and electronic).
* Notify state medical board of records management plans.
* Determine required retention time per state law.
* Establish a mailing address for record requests post-closure.

Clinic Documents & Equipment

* Store personnel records per state law.
* Organize disposal/storage of clinic documents.
* Plan for selling or leasing equipment if appropriate.

Medications

* Follow federal guidelines for disposing of medications.
* Consult with drug representatives about unused samples.
* Destroy all prescription pads.

Mail Service

* Coordinate mail forwarding with the U.S. Postal Service.