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 Indiana.
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.
Indiana Medical Practice Closure Laws
Indiana physicians must comply with state patient-notification, continuity-of-care, medical-record, and licensing requirements when closing a practice.
Indiana Patient Notification Requirements
Under 844 IAC 5-2-16, a physician who retires, discontinues the practice of medicine or osteopathic medicine, or leaves or moves from a community must notify all active patients.
For this rule, an active patient is someone the physician examined, treated, cared for, or consulted during the two years before the closure, retirement, or move.
Physicians may satisfy the notification requirement by sending written notice to active patients or publishing notice once a week for three consecutive weeks in a newspaper of general circulation in the community. The notice must explain that the physician intends to discontinue practice in the community and encourage patients to seek another practitioner.
The rule does not establish a specific number of days before closure when notification must occur. However, the Indiana State Medical Association recommends 60 to 90 days’ written notice by mail as a risk-management practice.
A closure notice should tell patients:
- The date the practice will close
- How to obtain continued or urgent care
- How to select another physician
- Where medical records will be stored
- How to request a copy or authorize a transfer
- How long the records will remain available
- How to contact the physician or records custodian after closure
The physician must also make reasonable arrangements for transferring records or copies to a succeeding practitioner or an approved medical society or association program.
Indiana’s professional conduct rules separately prohibit patient abandonment. Physicians should provide additional outreach to patients receiving active treatment, patients with serious or unstable conditions, and patients with pending laboratory, imaging, pathology, or consultation results.
Indiana also prohibits physicians from selling patient records for valuable consideration. Records may be conveyed to an unrestricted physician who assumes the practice, but patients must receive the required written notice.
Indiana Medical Records Retention and Access Requirements
Under Indiana Code § 16-39-7-1, a physician must retain original health records or microfilm copies for at least seven years. Failure to comply can result in professional discipline.
Indiana also requires providers to retain most x-ray images for at least five years. Original mammogram films and reports must generally be retained for at least five years, or ten years if the provider performs no additional mammograms for the patient.
When a patient submits a proper written request, the provider must generally supply the requested health records within 30 days. One extension of up to 30 additional days is available if the patient receives a timely written explanation and an expected completion date.
These responsibilities continue after the practice closes. Physicians should establish a secure, durable method for:
- Retaining records for the required period
- Receiving patient requests
- Confirming the requester’s authority
- Producing records within the legal deadline
- Documenting disclosures and transfers
- Protecting paper and electronic information
- Securely destroying records when retention requirements expire
A physician may retain responsibility for these functions or contract with a qualified medical records custodian. If the custodian will maintain protected health information on behalf of a HIPAA-covered practice, the parties will generally need a HIPAA-compliant business associate agreement.
If you do not want to remain responsible for storing records and fulfilling requests after closing, Desert River Solutions can help. Learn more about our custodian of medical records services.
Indiana Medical Board Notification Requirements
Indiana’s Medical Licensing Board rules do not appear to require a separate closure form solely because a physician is closing a practice. However, physicians must comply with the Board’s closure-related professional conduct and address requirements.
Under 844 IAC 4-4.5-19, a physician must report changes to practice and residential addresses, including removal from a closed practice address, within 20 days. Physicians with more than one address must also identify their primary mailing address.
Physicians who no longer intend to practice should decide whether to maintain an active license or request inactive or retired status. Indiana physicians may request inactive status by contacting the Professional Licensing Agency. Requests for retired status may be uploaded through MyLicense One. Physicians on inactive or retired status may not continue practicing under those classifications.
A practice closure may also require a separate update to the physician’s Indiana controlled substance registration. Medicare, Indiana Medicaid, DEA, malpractice insurers, hospitals, and private payers may have their own notification or termination procedures.
Additional Resources for Closing Your Medical Practice in Indiana
For current information about Indiana medical practice closure laws and related requirements, review these resources:
- 844 IAC 5-2-16: Discontinuance of Practice
- Current Indiana Code, Title 16: Health
- Indiana Professional Licensing Agency: Physicians
- Indiana State Medical Association: Retiring or Leaving Practice
- Indiana State Medical Association: Locating Medical Records
- Indiana Attorney General: Abandoned Records
- Indiana Medicaid Provider Disenrollment
Because practice structures, payer contracts, specialties, and patient populations vary, physicians should confirm their closure plan with the Medical Licensing Board of Indiana, legal counsel, malpractice carrier, and records custodian before implementing it.
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 Indiana and beyond with secure, HIPAA-compliant medical records storage and management. Need help with medical records retention in Indiana? 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.
