Arizona Medical Practice Closure Laws

When closing a medical practice such as a doctor’s office, dental practice, or hospital, understanding the laws related to practice closure is vital. Every state has specific regulations governing how patients must be notified, how long medical records must be maintained, and more. Medical professionals must follow specific legal and ethical steps to ensure a smooth patient and staff transition. Failure to adhere to these requirements can lead to legal repercussions and patient care disruptions.

This guide provides a comprehensive overview of the legal requirements for closing a medical practice in Arizona.

Key Requirements for Medical Practice Closure

Closing a medical practice is a multifaceted process that requires careful planning and compliance with legal obligations. Some items you will need to keep in mind, include:

Patient Notification

How and when will you notify patients of your intent to close your practice? Patients must be given adequate notice of the closure. This allows them to find alternative care providers.

Medical Records Management

Patients must be informed about how to obtain copies of their medical records. In many states, physicians are required to retain records for a certain period (e.g., seven to ten years) after the practice closes or to contract a medical records custodian to deliver records to patients for that time period.

Staff Considerations

Employees should be notified per labor laws, and any contractual obligations regarding severance or final paychecks must be fulfilled.

Regulatory Compliance

The practice must notify licensing boards, Medicare/Medicaid, and malpractice insurers of the closure. Additionally, the practice may need to formally dissolve as a business entity.

Disposal of Medications and Equipment

Prescription drugs and medical waste must be disposed of according to federal and state regulations to ensure environmental and public safety.

Financial and Legal Obligations

Outstanding debts, leases, and vendor agreements must be settled before closure. Legal counsel can help navigate any complexities.

Arizona Medical Practice Closure Laws

​When closing a medical practice in Arizona, healthcare providers must adhere to specific state laws and regulations to ensure a compliant and smooth transition for patients and staff.​

Arizona Patient Notification Requirements

While Arizona laws provide direction for the retention of medical records (A.R.S. §12-2297) there are no laws that specifically relate to closing a practice. However, there are several organizations that provide guidelines on this subject. These guidelines, while not in law, provide a good rule of thumb for physicians to follow. A brief synopsis of the American Medical Association (AMA) guidelines to closing a practice are provided for your information.

Make sure to follow these steps when closing a practice:

• Notify employees and review employee ethical and legal obligations: Offer employees an incentive to stay to the end, assist employees in finding other employment. Review employee retirement plans, healthcare plans, and requirements to pay for unused employee benefits, such as vacation time and sick leave.
• Notify patients to ensure continuity of care: Send a letter to each active patient at least 3 months prior to closure. Avoid abandonment by notifying patients of your intent to terminate their care in writing and in sufficient time for the patient to arrange for care with another physician.
• Record retention: Retain records according to state retention laws and Medicare/Medicaid laws if applicable. Also check with insurance carrier for “tail” coverage guidelines. Federal law mandates that mammograms be retained for at least 10 years. If records are not being transferred, archive with a reputable commercial storage firm or rent space from another physician. Make sure storage agreement includes confidentiality terms. Only provide patient with copies of records. Establish method of honoring record requests.

In Arizona, closure notifications need to be sent out at least 3 months prior to your closure date.

Other notification information:

• Notify your malpractice insurance carrier and make sure malpractice insurance continues after practice is closed.
• Print an announcement in local newspapers.
• Send a letter to active patients (registered mail for high-risk patients) including the following information: office closing date, where records will be stored and how to access them, release of information form, deadline for submitting records request, and information on how to contact a new physician/healthcare provider. Place a copy of the notification in each patient’s chart. (For more information on the Arizona laws pertaining to record retention, see A.R.S. §12-2297.)

We recommend sending a physical letter, posting signage around your practice, and posting information about the closure on your website. It is essential that anyone who visits your practice or practice website can easily find the closure information.

A closure notification letter should include:

• The date of closure.
• The reason for closure (i.e., retirement, relocation, etc.).
• A forwarding address or phone number for questions after your closure.
• An authorization form for patients to sign so that their medical records can be transferred to a new practice.
• Information on patient record storage, including where the records will be stored, how to contact the storage facility, and any costs associated with patient record requests.

Arizona Medical Records Retention and Access Requirements

A. Unless otherwise required by statute or by federal law, a health care provider shall retain the original or copies of a patient’s medical records as follows:

1. If the patient is an adult, for at least six years after the last date the adult patient received medical or health care services from that provider.

2. If the patient is a child, either for at least three years after the child’s eighteenth birthday or for at least six years after the last date the child received medical or health care services from that provider, whichever date occurs later.

3. Source data may be maintained separately from the medical record and must be retained for six years from the date of collection of the source data.

B. When a health care provider retires or sells the provider’s practice the provider shall take reasonable measures to ensure that the provider’s records are retained pursuant to this section.

C. A person who is licensed pursuant to title 32 as an employee of a health care provider is not responsible for storing or retaining medical records but shall compile and record the records in the customary manner.

D. A nursing care institution as defined in section 36-401 shall retain patient records for six years after the date of the patient’s discharge.  For a minor, the nursing care institution shall retain the records for three years after the patient reaches eighteen years of age or for six years after the date of the patient’s discharge, whichever date occurs last.

If you don’t want to maintain responsibility for storing and fulfilling medical records requests, we can help. Learn more about our custodian of medical records services here.

For more details on Arizona’s medical record retention requirements, consult the medical board of Arizona or legal counsel.

Arizona Medical Board Notification Requirements

Physicians must notify the Medical Board of Arizona about the practice closure and comply with any additional state-specific requirements. This includes informing relevant licensing boards and ensuring all professional obligations are met.

Additional Resources for Closing Your Medical Practice in Arizona

To get up-to-date information about medical practice closure laws in and requirements in Arizona, please see these additional resources:

• Closing a Practice- What Physicians Should Know, Arizona Medical Board
• Arizona Retention of Records, Arizona State Legislature

How Desert River Solutions Can Help

Desert River Solutions is a trusted medical records custodian serving healthcare providers nationwide. Our services include:

• Electronic medical record extraction for seamless digital transition.
• Document scanning and storage for secure retention.
• HIPAA-compliant record management and destruction.
• Patient record request fulfillment, ensuring continuity of care.

Managing medical records retention is a critical aspect of healthcare compliance. Whether you’re closing a practice, transitioning to digital records, or ensuring legal compliance, working with a trusted medical records custodian can save time and reduce risk.

At Desert River Solutions, we help healthcare providers in Arizona and beyond with secure, HIPAA-compliant medical records storage and management. Need help with medical records retention in Arizona? Contact Desert River Solutions today!

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Legal Disclaimer: the information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.