Closing your dental practice is a significant transition, whether due to retirement, a career change, or unforeseen circumstances. It involves a detailed and organized process that respects patient needs, meets legal obligations, and ensures a smooth transition. This checklist covers essential steps and considerations to help you navigate this journey successfully.
Checklist for Closing Your Dental Practice
1. Notify Patients in Advance
Informing patients about your decision to close the practice is crucial. Not only is it considerate, but it’s also often required by law. Here’s how to manage patient notification effectively:
- Provide Ample Notice: Most states require at least 30-60 days’ notice. This can be done via mailed letters, in-office announcements, email notifications, or posts on your website.
- Offer Referral Assistance: Help patients find another dentist by providing recommendations. This ensures they continue receiving care and may reduce potential patient abandonment claims.
- Avoid Starting New Treatments: If your practice is closing soon, avoid beginning treatments that won’t be completed before the closure date. Patients undergoing long-term treatment should be transferred to another practitioner if necessary.
2. Manage Patient Records Properly
Patient records are an essential asset and must be handled with strict adherence to legal guidelines. Consider the following steps:
- Obtain Written Consent for Transfers: If patients request their records be sent to another dentist, you must have their written consent. HIPAA laws require that records be retained for six years, though some states may mandate longer retention periods.
- Keep Records Secure: If not transferring to another practice, consider using secure storage options for records. Records for minors must often be retained until they reach a certain age.
- Properly Dispose of Old Records: Use a professional document shredding service to destroy outdated or inactive records securely. Always obtain a certificate of destruction to confirm compliance.
3. Notify Staff and Plan Employment Transitions
When closing your dental practice, it’s essential to communicate with your team early on and provide necessary support.
- Provide Advance Notice to Staff: Inform your staff before notifying patients. Be transparent about the timeline and whether they’ll receive severance, bonuses, or other support.
- Retain Key Personnel if Selling: If you’re selling the practice, keep essential staff on board for a smooth transition. Employment contracts or bonuses can encourage staff to remain with the new owner temporarily.
- Plan for Staff Documentation Needs: Ensure final payments are processed, cancel insurance policies tied to employment, and finalize tax documents to ensure compliance.
4. Settle Business and Financial Obligations
Before closing, address any financial obligations to prevent issues down the line.
- Inform Insurance Carriers and Cancel Policies: Notify malpractice insurers, liability carriers, and others of your practice’s closure date. Consider adding a “tail” to your malpractice insurance for continued protection post-closure.
- Review Outstanding Debts and Accounts: Handle any outstanding payments, including those due to suppliers or equipment lease agreements. Address patient balances to avoid later claims or financial disputes.
- Address Business Loans and Tax Obligations: Consult with an accountant to close business accounts, pay taxes, and meet legal obligations for payroll and other financial records.
5. Plan for Equipment and Asset Management
Properly disposing of or transferring your practice’s equipment and assets can help you recover costs and ensure safety.
- Sell or Donate Equipment: Get an appraisal for any equipment or tools that you plan to sell. Donating equipment to a local charity may provide a tax deduction, though checking expiration dates and safe disposal practices is necessary for all items.
- Dispose of Medications Responsibly: Certain drugs require specific disposal procedures. Review guidelines for discarding any prescription drugs or hazardous materials.
- Secure Patient Confidentiality with Asset Transfers: If selling the practice, ensure that the new owner maintains patient records and confidentiality according to legal requirements.
6. Finalize Licenses, Permits, and Legal Requirements
A smooth closure requires compliance with various local, state, and federal guidelines:
- Notify Relevant Authorities: Inform your state dental board, local dental society, Social Security Administration (if applicable), and any other regulatory bodies about the closure. You can consult resources like the American Dental Association (ADA) for guidance and updates on closing practice regulations.
- Review State Laws on Practice Closure: Different states have specific requirements for patient record retention, notifications, and patient confidentiality. Consult legal counsel to confirm compliance.
- Ensure Proper Disposal of Hazardous Waste: Dental practices often deal with hazardous waste materials, such as amalgam and other substances. Check with your state’s environmental agency for guidelines on proper disposal.
7. Communicate with Third-Party Providers and Cancel Services
To ensure all loose ends are tied up, notify third parties associated with your practice:
- Inform Referring Specialists and Labs: Notify any referring doctors or dental labs of your closure. If patients need to follow up, ensure smooth communication with these providers.
- Cancel Office Utilities and Services: Cancel utility services, internet, and office supplies to prevent unnecessary charges after closure.
- Return Leased Equipment and Cancel Memberships: Return any leased equipment or furniture and cancel subscriptions, memberships, or any other practice-related services.
8. Create a Transition Plan for Continued Patient Care
When feasible, assisting patients with their transition to a new provider is a considerate and practical step that can help mitigate any legal issues.
- Prepare a List of Local Dentists for Referrals: Providing your patients with a list of recommended dentists helps ensure they receive continuous care.
- Provide Treatment Summaries for Complex Cases: For patients with ongoing treatment, transfer complete medical information to the new provider with patient consent. This documentation may help prevent legal claims of patient abandonment.
9. Store Important Documents and Records Securely
Even after closing your practice, it’s crucial to retain access to certain documents:
- Store Business Records for the Required Period: Retain tax documents, financial records, and other business-related paperwork. Recordkeeping timelines vary, so consult legal or financial professionals for specific guidance.
- Maintain Insurance and Malpractice Documentation: Keep malpractice and liability policies on hand even after your practice closes. Some policies may require proof of a “tail” extension for ongoing coverage.
10. Seek Professional Advice Throughout the Process
Finally, the complexities of closing a dental practice make it wise to seek professional advice to guide your decision-making:
- Assemble a Transition Team: Work with a team of advisors, including a lawyer, accountant, and dental practice broker, for guidance through the process.
- Evaluate Practice Sale Opportunities: If possible, consider selling rather than closing your practice. Even partial sales of assets can help recoup costs and ease your financial transition.
- Consult Your Professional Liability Carrier: Many insurance providers have specific recommendations and resources for managing a practice closure smoothly and minimizing risks.
Why Choose Desert River Solutions For Electronic Medical Record Custodian
Choosing Desert River Solutions to close your dental practice means you’ll be worry-free that your records are being migrated efficiently, stored securely, and promptly provided to patients requesting their health records. Contact us today to learn more about dental records custodian services.
Information in this article is provided as a guideline for closing your practice only and should not be considered legal or financial advice. To ensure that your dental practice is compliant with all laws, contact a lawyer and accountant to review the legal requirements for closing relevant to your practice.
