Texas 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 Texas.

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.

Texas Medical Practice Closure Laws

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

Texas Patient Notification Requirements

The physician shall provide notice to patients of when the physician intends to terminate the practice, retire or relocate, and will no longer be available to patients, and offer patients the opportunity to obtain a copy of their medical records or have their records transferred.

Notification shall be accomplished by:

• letter or email to each patient seen in the last two years by the departing physician; and
• posting a notice in a conspicuous location in the physician’s/practice office and on the practice website at least 30 days prior to the termination, leaving, or sale or relocation of practice.

In Texas, 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.

Texas Medical Records Retention and Access Requirements

In the state of Texas, medical record retention laws vary depending on the type of provider and whether the patient is a minor or an adult.

If a patient was younger than 18 years of age when last treated by the physician, the medical records of the patient shall be maintained by the physician until the patient reaches age 21 or for seven years from the date of last treatment, whichever is longer. If a patient was younger than 18 years of age when the patient was last treated, the hospital may authorize the disposal of medical records relating to the patient on or after the date of the patient’s 20th birthday or on or after the 10th anniversary of the date on which the patient was last treated, whichever date is later.

For adult patients, a licensed physician shall maintain adequate medical records for a patient for a minimum of seven years from the anniversary date of the last treatment by the physician. A hospital may authorize the disposal of any medical record on or after the 10th anniversary of the date on which the patient who is the subject of the record was last treated in the hospital.

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 Texas’s medical record retention requirements, consult the Texas Medical Board or legal counsel.

Texas Medical Board Notification Requirements

1. Notify Health Facility Licensing and your Health Facility Compliance Regional Office of the closure, including the termination date for the CLIA registration.
2. Notify Health Facility Licensing in writing of the location where the medical records will be stored and the name and contact information for the custodian of these records.
3. Notify, if applicable, the Centers for Medicare and Medicaid Services (CMS) and your Fiscal Intermediary of the closure.
4. Notify the Texas State Board of Pharmacy and the Drug Enforcement Administration (DEA) of the closure.
5. Notify the Texas Department of State Health Services (DSHS) Radiation Control Program of the closure.
6. Notify the Texas Department of Licensing and Regulation Boiler Program of the closure.
7. Notify the Texas Department of Transportation’s district office, in the district in which the hospital is located, for the removal of highway signs directing traffic to the hospital.
8. Notify DSHS EMS-Trauma Systems and the local regional advisory committee (RAC), including EMS providers, of the closure.
9. Notify the County Indigent Care Coordinator (for hospital districts).
10. Return the hospital’s license to Health Facility Licensing when the hospital ceases operation. In cases of a Change of Ownership, please refer to those specific instructions.

NOTE: This list is provided for your convenience and may not include all agencies that require notification.

Read more on the Texas Health and Human Services Website.

Additional Resources for Closing Your Medical Practice in Texas

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

• Texas Health and Human Services Website.
• TEX. HEALTH & SAFETY CODE § 241.103

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