What Do I Do With My Patient Files?
If you have been practicing for decades, you likely have thousands of patient files in your office. Even if you have a document retention policy that allows you to destroy files once they have reached a certain age, and even if you have moved to an electronic system, you may still have a considerable amount of patient information in your office, which you are legally obligated to maintain. If you are selling your practice, you may be able to transfer the burden of maintaining those old files in the purchase and sale agreement. If you are simply closing your practice, you will want to check with your state's rules, but you may be able to sell the patient charts and transfer the obligation to maintain the charts to the buyer. Since every state's rules are different, though, you may want to contact the dental board for guidance.
What Should I Tell My Patients And How?
If you sell your practice, the purchase and sale agreement may have a requirement that you jointly draft a letter with the purchaser. Be careful to avoid effusive praise of the dentist unless you have worked alongside him. If there is a subsequent claim against the dentist, you may be opening yourself up to potential liability if you are seen as endorsing the new doctor. However, you do need to advise your patients that you are retiring, and you need to tell them who the custodian of their records will be, and you should advise the dental board as to who the custodian of records for your files will be.
What Do I Need To Tell The Dental Board?
In addition to advising the dental board who the custodian of your patient charts will be, you may also want to change your status with the board from active to retired. Otherwise, you will be subject to the CE requirements of an active dentist and have to pay the full renewal fee. If you are willing to completely give up your license, you can simply voluntarily cancel your license. However, Arizona allows dentists to pay a nominal fee and be placed on Retired status.
How Do I Wind Down My Practice Entity?
Frequently, a sale of a dental practice is not actually a sale of the practice. Instead, it is an asset purchase agreement, in which all of the assets are taken out of the professional limited liability company, professional corporation or other entity you created to own the practice. The result is that the entity still exists after the sale, but it is an empty shell. Although you can simply allow the entity to wither on the vine, and take no further action, you could unwittingly incur fines and penalties from state and local governments or the IRS. Therefore, you should prepare and file the necessary documents with the Corporation Commission and a final tax return with the IRS to bring the entity to a final conclusion.
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While we are making an effort to share general knowledge with the dental community and answer dentists’ questions, this not a substitute for individualized advice from an experienced healthcare lawyer. If you would like to speak with our attorneys and have them take an in-depth look at your particular situation, please feel free to contact us directly.