Michigan 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 Michigan.

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.

Michigan Medical Practice Closure Laws

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

Michigan Patient Notification Requirements

Physicians closing a medical practice in Michigan are legally and ethically required to notify patients in advance. Although Michigan law (MCL 333.16213) does not prescribe an exact timeline, patients must be given at least 30 days to request their medical records before any potential destruction or transfer. Written notice must be sent to each patient’s last known address, informing them of:

• The date the practice will close
• How to obtain or transfer their medical records
• The deadline to respond (minimum of 30 days)
• Instructions for providing written authorization if the patient consents to destruction of their records

While the law mandates written notification by mail, many medical boards and malpractice insurers recommend sending both certified mail (return receipt) and standard first-class mail for documentation purposes. Posting additional notices in the office, on the practice website, or in a local newspaper is encouraged as a courtesy to reach patients whose addresses may be outdated.

Timely and thorough notification not only fulfills legal obligations but also reduces the risk of claims of patient abandonment or disruption of care.

In Michigan, 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.

Michigan Medical Records Retention and Access Requirements

Under Michigan law, physicians must retain medical records for a minimum of seven years from the date of last treatment. However, for records involving certain sensitive examinations (e.g., involving vaginal or anal penetration), a 15-year retention period is required.

Key requirements include:

• Ownership of records rests with the physician or practice, but patients have the right to access their records.
• If a practice closes, records must be either:
  • Transferred to a licensed successor, facility, or a medical records custodian, or
  • Securely destroyed only after patients have been notified and have given written authorization
• Destruction of records younger than 7 (or 15) years is prohibited unless patient consent is documented.

Physicians must ensure records remain accessible during the full retention period. Contracting with a professional records management company is a common solution to maintain compliance and patient access.

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 Michigan’s medical record retention requirements, consult the Michigan Legislature website.

Michigan Medical Board Notification Requirements

Physicians must notify the Michigan Department of Licensing and Regulatory Affairs (LARA) when they close, sell, or otherwise terminate their medical practice. The notice should include:

• The effective date of closure or sale
• The name and contact details of the individual or company responsible for storing patient records
• Instructions for how patients may obtain their records

Although Michigan law does not specify a required timeframe for this notification, submitting it within 10 days of practice closure is a widely accepted standard. Notices should be submitted in writing—preferably by certified mail—for proper documentation.

This step ensures the state can assist patients who contact LARA looking for their records and supports the physician’s compliance with the Michigan Public Health Code.

Additional Resources for Closing Your Medical Practice in Michigan

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

• Michigan Public Health Code – MCL 333.16213 (Records Retention and Notification Law)
• LARA – Bureau of Professional Licensing (Health Professionals Division)
• Michigan State Medical Society – Physician Resources and Practice Management
• State Bar of Michigan

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 Michigan and beyond with secure, HIPAA-compliant medical records storage and management. Need help with medical records retention in Michigan? 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.