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 Illinois.
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.
Download a Checklist for Closing Your Medical Practice
Fill out the form to receive a PDF download of the medical practice closure checklist we use, or contact us today to learn more about how we can help you seamlessly close your practice and begin the next chapter in your life.
Illinois Medical Practice Closure Laws
When closing a medical practice in Illinois, healthcare providers must adhere to specific state laws and regulations to ensure a compliant and smooth transition for patients and staff.
Illinois Patient Notification Requirements
(a) In this Section:
“Health care facility” or “facility” means a public or private hospital, ambulatory surgical treatment center, nursing home, independent practice association, or physician hospital organization, or any other entity where health care services are provided to any person. The term does not include a health care practitioner.
“Health care practitioner” means any health care practitioner, including a physician, dentist, podiatric physician, advanced practice registered nurse, registered nurse, licensed practical nurse, physician assistant, clinical psychologist, clinical social worker, therapist, or counselor. The term includes a medical office, health care clinic, health department, group practice, and any other organizational structure for a licensed professional to provide health care services. The term does not include a health care facility.
(b) Every private and public health care facility shall, upon the request of any patient who has been treated in such health care facility, or any person, entity, or organization presenting a valid authorization for the release of records signed by the patient or the patient’s legally authorized representative, or as authorized by Section 8-2001.5, permit the patient, his or her health care practitioner, authorized attorney, or any person, entity, or organization presenting a valid authorization for the release of records signed by the patient or the patient’s legally authorized representative to examine the health care facility patient care records, including but not limited to the history, bedside notes, charts, pictures and plates, kept in connection with the treatment of such patient, and permit copies of such records to be made by him or her or his or her health care practitioner or authorized attorney.
(c) Every health care practitioner shall, upon the request of any patient who has been treated by the health care practitioner, or any person, entity, or organization presenting a valid authorization for the release of records signed by the patient or the patient’s legally authorized representative, permit the patient and the patient’s health care practitioner or authorized attorney, or any person, entity, or organization presenting a valid authorization for the release of records signed by the patient or the patient’s legally authorized representative, to examine and copy the patient’s records, including but not limited to those relating to the diagnosis, treatment, prognosis, history, charts, pictures and plates, kept in connection with the treatment of such patient.
(d) A request for copies of the records shall be in writing and shall be delivered to the administrator or manager of such health care facility or to the health care practitioner. The person (including patients, health care practitioners and attorneys) requesting copies of records shall reimburse the facility or the health care practitioner at the time of such copying for all reasonable expenses, including the costs of independent copy service companies, incurred in connection with such copying not to exceed a $20 handling charge for processing the request and the actual postage or shipping charge, if any, plus: (1) for paper copies 75 cents per page for the first through 25th pages, 50 cents per page for the 26th through 50th pages, and 25 cents per page for all pages in excess of 50 (except that the charge shall not exceed $1.25 per page for any copies made from microfiche or microfilm; records retrieved from scanning, digital imaging, electronic information or other digital format do not qualify as microfiche or microfilm retrieval for purposes of calculating charges); and (2) for electronic records, retrieved from a scanning, digital imaging, electronic information or other digital format in an electronic document, a charge of 50% of the per page charge for paper copies under subdivision (d)(1). This per page charge includes the cost of each CD Rom, DVD, or other storage media. Records already maintained in an electronic or digital format shall be provided in an electronic format when so requested. If the records system does not allow for the creation or transmission of an electronic or digital record, then the facility or practitioner shall inform the requester in writing of the reason the records can not be provided electronically. The written explanation may be included with the production of paper copies, if the requester chooses to order paper copies. These rates shall be automatically adjusted as set forth in Section 8-2006. The facility or health care practitioner may, however, charge for the reasonable cost of all duplication of record material or information that cannot routinely be copied or duplicated on a standard commercial photocopy machine such as x-ray films or pictures.
Give the public at least 30 days’ prior notice before you close the practice. The notice must explain how patients can access copies of their records. You may satisfy notice by publishing it in “a newspaper of general circulation” where the practice is located.
In Illinois, closure notifications need to be sent out at least 30 days prior to your closure date.
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.
Illinois Medical Records Retention and Access Requirements
Every hospital shall preserve its medical records in a format and for a duration established by hospital policy and for not less than 10 years.
If the hospital has been notified in writing by an attorney before the expiration of the 10 year retention period that there is litigation pending in court involving the record of a particular patient as possible evidence and that the patient is his client or is the person who has instituted such litigation against his client, then the hospital shall retain the record of that patient until notified in writing by the plaintiff’s attorney, with the approval of the defendant’s attorney of record, that the case in court involving such record has been concluded or for a period of 12 years from the date that the record was produced, whichever occurs first in time.
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 Illinois’s medical record retention requirements, consult the Illinois General Assembly Website or legal counsel.
Additional Resources for Closing Your Medical Practice in Illinois
To get up-to-date information about medical practice closure laws in and requirements in Illinois, please see these additional resources:
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 Illinois and beyond with secure, HIPAA-compliant medical records storage and management. Need help with medical records retention in Illinois? Contact Desert River Solutions today!
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.
