Legal Issues Around Retiring, Shuttering Your Medical Practice

A written custodial arrangement should be signed by the custodian who agrees to retain and store your records. This can be a physician, non-physician or document-management company. The agreement should state the retention period, describe who can access the records and under what conditions, and require the custodian to comply with state and federal laws governing confidentiality of medical records, access and disclosure.

Closing your practice can be an emotional & time-consuming endeavor.

Financial Matters

Timeframe: After last patient visit
After the last patient visit, you should request final bills from all vendors. If your office space is leased, have your legal advisor review the terms of the lease to confirm how utilities will be handled. Be sure to terminate any credit cards issued in the name of the practice and stop any automatic payments. Once all bills have been paid and all receivables collected, the practice’s bank accounts should be closed.

License Status

Timeframe: After retirement date
States vary on the process required to change your medical license to retirement status, and you will need to confirm the applicable requirements in your state. In addition to retirement status, there may be other options, such as retired and inactive status, retired and active status, or volunteer status.

Final Steps

Once the above steps are completed, your practice’s professional entity should be terminated. Although the process can vary by state, it typically involves filing a dissolution form with the state.

Closing your practice can be an emotional and time-consuming endeavor. Taking these considerations into account should make your transition to retirement a smoother process.

Steven M. Harris, Esq., is a nationally recognized healthcare attorney and a member of the law firm McDonald Hopkins LLC. Contact him via e-mail at [email protected].