North Carolina 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 North Carolina.

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.

North Carolina Medical Practice Closure Laws

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

North Carolina Patient Notification Requirements

It is the patient’s decision from whom to receive care.  Therefore, it is the responsibility of all parties to ensure that:

• Patients are notified in a timely fashion of changes in the practice and given the opportunity to seek other medical care, sufficiently far in advance (at least 30 days), to allow other medical care to be secured.  The Board does not have specific rules on which patients should receive this notification or how it should be accomplished, but a reasonable option would be to notify active patients the licensee has seen within the past 1-2 years.  Methods of notification which might be considered include, letters to patients, newspaper notices, posting an announcement in public locations in the office, website announcements, social media, text messages, front desk flyers, etc.  Each medical practice and patient population is unique and the Board would expect the licensee and the group or employer to utilize the most effective means of patient notification for their particular situation.
• Patients clearly understand they have a choice of health care providers and notice to patients of the departing licensee should include an unambiguous statement that patients may choose from whom to receive medical care.  It is unethical to take any actions such as withholding information regarding the new practice location of the licensee when requested by a patient.  Both the licensee and any relevant practice group or employer are responsible for notifying patients, and no party should interfere in the discharge of this obligation by withholding essential information.
• Patients are told both how to contact licensee(s) remaining in practice, and when specifically requested, how to contact departing licensees.
• Patients are told how to obtain copies of, or transfer, their medical records.

Written Policies:

The Board recommends that licensees and practices prepare written policies regarding the secure maintenance, storage, transfer, data sharing, and retrieval of patient medical records in case of the closure of a practice, recognizing that separate policies may be necessary for the storage of, and access to, paper and electronic medical records.  Licensees and practices should notify patients of these policies.  At a minimum, the Board recommends that such written policies include:

• A procedure and timeline that describes how the licensee or practice will notify each patient about (1) a pending practice closure or licensee departure, (2) how medical records are to be accessed, and (3) how future notices of the location of the practice’s medical records will be provided.
• How long medical records will be retained and the procedure by which the licensee or practice will dispose of unclaimed medical records.
• How the licensee or practice will respond to requests from patients for copies of or access to their medical records.
• In the event of a licensee’s death or incapacity, how the deceased licensee’s executor, administrator, personal representative, or survivor will notify patients of the location of their medical records, how patients can access those records, and how and when unclaimed medical records will be destroyed after a specified period of time.
• The procedure by which the licensee or practice will maintain medical record confidentiality and data integrity.  Practice transitions are also times when there is increased risk of privacy breaches or inappropriate disclosure.  HIPAA and other privacy rules require that patients must be promptly informed about any security breach or unauthorized disclosure describing what information was breached, and what steps patients may take to minimize adverse consequences of inappropriate disclosure of their personal health information.

The Board further expects licensees to comply with all applicable state and federal laws and regulations pertaining to a patient’s protected healthcare information.

Additional Resources:  The Board has published A Physicians Guide to Closing a Practice to assist licensees with meeting professional obligations.

In North Carolina, 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.

North Carolina Medical Records Retention and Access Requirements

The manager of medical records shall maintain medical records of a patient who is a minor until the patient’s 30th birthday.

The manager of medical records service shall maintain medical records, whether original, computer media, or microfilm, for a minimum of 11 years following the discharge of an adult patient.

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 North Carolina’s medical record retention requirements, consult the North Carolina Medical Board Website or legal counsel.

North Carolina Medical Board Notification Requirements

(a) The Board shall require all physicians and physician assistants to report to the Board
certain information, including, but not limited to, the following:
(1) The names of any schools of medicine or osteopathy attended and the year of
graduation.
(2) Any graduate medical or osteopathic education at any institution approved by
the Accreditation Council of Graduate Medical Education, the Committee for
the Accreditation of Canadian Medical Schools, the American Osteopathic
Association, or the Royal College of Physicians and Surgeons of Canada.
(3) Any specialty board of certification as approved by the American Board of
Medical Specialties, the Bureau of Osteopathic Specialists of American
Osteopathic Association, or the Royal College of Physicians and Surgeons of
Canada.
(4) Specialty area of practice.
(5) Hospital affiliations.
(6) Address and telephone number of the primary practice setting.
(7) An e-mail address or facsimile number which shall not be made available to
the public and shall be used for the purpose of expediting the dissemination of
information about a public health emergency.
(8) Any final disciplinary order or other action required to be reported to the Board
pursuant to G.S. 90-14.13 that results in a suspension or revocation of
privileges.
(9) Any final disciplinary order or action of any regulatory board or agency
including other state medical boards, the United States Food and Drug
Administration, the United States Drug Enforcement Administration,
Medicare, or the North Carolina Medicaid program.
(10) Conviction of a felony.
(11) Conviction of certain misdemeanors, occurring within the last 10 years, in
accordance with rules adopted by the Board.
(12) Any medical license, active or inactive, granted by another state or country.
(13) Certain malpractice information received pursuant to G.S. 90-5.3, G.S. 90-
14.13, or from other sources in accordance with rules adopted by the Board.
(b) Except as provided, the Board shall make information collected under G.S. 90-5.2(a)
available to the public.
(c) The Board may adopt rules to implement this section.
(d) Failure to provide information as required by this section and in accordance with
Board rules or knowingly providing false information may be considered unprofessional conduct
as defined in G.S. 90-14(a)(6). (2007-346, s. 6.)

Additional Resources for Closing Your Medical Practice in North Carolina

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

• North Carolina Medical Board Website.
• 90-5.2. Board to collect and publish certain data.
• North Carolina Medical Board Professional 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 North Carolina and beyond with secure, HIPAA-compliant medical records storage and management. Need help with medical records retention in North Carolina? 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.