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.