- Agency
- Your state licensing board, plus federal health privacy rules
- Paperwork
- Patient notice, a written records custody plan and a records transfer or retention agreement
- The clock
- Plan the notice before the signing, since patients should hear before the charts move
Watch for: Letting the buyer take the charts without telling patients. Boards expect notice and a clear path to the records.
Why records are different
Charts belong to a protected category of information. Federal privacy rules apply to health records, and state licensing boards add their own expectations for physicians and dentists who sell or close a practice.
A buyer cannot just receive the files because they paid for the practice. The plan has to protect the patients.
Notice to patients
Boards generally expect patients to be told when a practice changes hands, who will hold their records afterward and how to reach the doctor or get a copy. Ask your board what form and timing it expects.
Many practices send a letter and post a notice at the office. Keep a copy of both.
Who keeps what
Common options are for the buyer to take custody of active charts while the seller keeps older ones, or for a third party to store them. The agreement should say who is the custodian and how patients request copies.
Retention periods are set by board rules and typically run for years after the last visit, and longer for minors. Ask your attorney for your exact period.
Electronic records and vendors
Most practices run on software with a vendor contract. Check whether the contract allows a transfer to the buyer, what a data export costs and how long old access lasts after closing.
Make sure backups are secure before any data moves, and that only people who need access get it.
Closing the practice instead
Some owners close a practice rather than sell it, and the same notice and storage duties still apply. Compare both paths with your attorney, since an orderly sale usually protects patients better than a sudden closing.
Insurance matters too. Ask your malpractice carrier whether a tail policy is needed for past care after you sell, and who pays for it.
The agreement itself
- Name the custodian of active and archived records
- State how patients get copies and how long you keep access
- Describe the notice letter and who sends it
- Cover what happens to records if the buyer later closes
Keep a dated log of every notice, letter and call, since boards sometimes ask for proof long after closing.
Where this fits
Records are one part of selling a practice. The practice pricing page covers the money side, and telling your staff covers timing.
To see a range, request a free value check.
This page is general information and not tax or legal advice. Confirm every step with a healthcare attorney and your licensing board.