Starting, selling or closing a medical practice
Successfully start, close or sell a family medicine practice with informed guidance, tools and checklists while managing legal, financial and patient‑record requirements.
- On this page
- Starting a medical practice
- Closing or selling a practice
Starting a medical practice
Starting a practice is a detailed and lengthy process. It is important to consider your options and evaluate your tolerance for risk. Although it will come with difficulty, starting a practice can have great rewards and is possible with the right resources.
One such resource to help guide you through the process is our Starting a Practice tool.
The tool, which is for members only, helps you determine start-up expenses, develop a monthly budget and assess evaluation and management revenue for a traditional physician practice. It can also help you understand and track your practice’s patient-visit goals. The checklist offers steps that can be taken for a reasonable implementation timeline.
Closing or selling a practice
Retiring and selling or closing your practice can be an exciting, yet complicated process. You may feel consumed by details and deadlines involved with the closing process and may wonder where to begin. The Closing Your Practice Checklist provides you with a number of notifications and tasks that guide you through the process of closing your practice.
Where do medical records go when a practice closes or is sold?
Keep the following in mind about medical records when closing or selling a practice:
Medical records cannot be transferred to another physician without the patient consent.
Patients must be given the option to choose another doctor and have a copy of their records sent to the physician of their choice.
Medical records cannot be part of the sale of the practice. If you are selling your practice to another physician, that physician can only become the legal custodian of the medical records and respond to record requests from patients, health facilities or legal entities.
The length of time required to keep a patient's medical record varies according to state law. Your state medical board can help you determine the rules for your area.
Sample letter notifying patients of closure
When closing a practice, you should send a notification letter to the patients you have seen in your practice within the last three years. An example letter follows:
Dear (insert patient name):
I am writing this letter to inform you that I will no longer be able to serve as your primary care physician at (insert practice name). After ___ years, I have decided to retire and close my practice. (If you are closing your practice for any other reason, this can be stated here.)
The last day that I will see patients will be (insert date). I will continue to provide medical care for you prior to this closing date. I have enclosed an authorization form for you to complete and return to our office to have your medical records forwarded to a new health care provider of your choice.
Once the office is closed, your medical records will be stored at (let patient know where they will be stored). Future medical record requests can be sent to (insert address). Requests will be filled as per time limitations dictated by state law retention requirements.
Thank you for trusting me with your health care needs throughout my time at (name of practice). It has been a pleasure caring for you. I wish you continued health and happiness in the future.
Sincerely,
(Insert physician name), MD/DO
Which professionals should you seek advice from?
As with starting a practice, closing a practice includes a number of financial and legal issues. You’ll want to contact an accountant and an attorney to help you navigate financial and legal issues related to closing or selling your practice.