Virginia 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 Virginia.

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.

Virginia Medical Practice Closure Laws

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

Virginia Patient Notification Requirements

Virginia law requires physicians to notify their patients prior to closing or relocating a practice. The goal is to give patients ample opportunity to obtain their medical records or arrange for continued care.

Key patient notification requirements include:

• Direct Notice to Patients: The physician must attempt to notify each current patient (those seen within the past two years) in advance of the closure. This notice can be sent by mail or electronically to the patient’s last known address. It should be sent well ahead of the closing date (commonly 60 days in advance is recommended as a best practice.
• Public Notice: In addition to individual letters or emails, the physician must publish a notice in a local newspaper of general circulation in the area of the practice. This serves as a broad announcement of the pending closure or relocation.
• Content of the Notice: The notice (whether mailed or published) must inform patients how to obtain their medical records. Virginia Code §54.1-2405 specifies that upon a patient’s written request, copies of the medical records will be sent to any other physician (of the patient’s choice) or provided directly to the patient within a reasonable time. Patients should be given the option to have their records transferred to a new healthcare provider or to receive a copy for their own keeping.
• Disclosure of Any Fees: The notice must disclose whether the physician will charge a fee for copying and sending the records. Virginia law limits any such charges to no more than the actual cost of copying and mailing or delivering the records. In practice, this means only reasonable, cost-based fees (covering materials, labor, and postage) can be billed to the patient.
• Definition of “Current Patient”: Virginia defines a “current patient” as anyone who had a medical encounter with the practice within the two years immediately prior to the closure or sale. These are the patients who must be notified. (It’s still wise to notify all patients seen in recent years, but the legal minimum is two years.)
• Method and Documentation: It’s prudent for physicians to send letters via first-class mail, and for certain high-risk or ongoing-care patients, consider using certified mail with return receipt to document that the patient received the notice. Posting a notice on the practice’s website and office door, and keeping the office phone line active with a recorded message after closure, are additional best practices to ensure patients get the news.

In Virginia, closure notifications need to be sent out at least 60 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.

Virginia Medical Records Retention and Access Requirements

Proper handling of medical records is a critical part of closing a practice. Virginia has specific medical record retention laws and patient access requirements that physicians must follow:

• Minimum Retention Period: Virginia Board of Medicine regulations require that patient records be kept for at least six years from the date of the last patient encounter. This six-year rule applies to adult patients in a physician’s practice. There are important exceptions and additional rules:
  • Minor Patients: Records for minors must be maintained until the child reaches age 18 (or is emancipated), with a minimum of six years retention from the last encounter regardless of age. In other words, you keep the record at least until the patient turns 18, and no less than six years total. (For example, a record of a 16-year-old must be kept until at least age 22.)
  • Transferred or Provided Records: If a patient’s records have already been transferred to another provider or given to the patient (or their legal representative), you are not obligated to retain duplicate copies for the remainder of the six-year period. Essentially, once you properly transfer a record upon patient request, that specific record retention requirement is fulfilled.
  • Longer Retention for Other Laws: If federal laws or contracts require a longer retention, physicians must comply with those mandates. For instance, Medicare managed care programs require records to be kept for 10 years, and OSHA rules mandate that certain exposure records be kept for 30 years. Virginia’s six-year rule is just a minimum; always follow the longest applicable requirement.
• Hospital Records (for context): Note that hospitals in Virginia have their own retention rules (e.g. 5 years after patient discharge for adult hospital records, or 5 years after a minor patient turns 18). However, for a physician’s private practice, the six-year rule (with the minor exception) is the key standard. Many practices opt to retain records for longer (such as 10 years) to cover the statute of limitations for malpractice claims, but six years is the legal baseline for physicians.
• Posting Record Retention Schedule: Virginia regulations also require physicians to inform patients about how long records will be retained and when they will be destroyed. This is often done by posting a notice in the waiting room or on the practice’s website. It lets patients know the timeframe in which their records will be available.
• Secure Destruction of Records: When the retention period has passed, records must be destroyed in a way that protects confidentiality. Acceptable methods include shredding or incineration of paper records (or permanent deletion of electronic records). Simply throwing files in the trash is not allowed – records disposal must safeguard patient privacy.

Patient access to records is protected by Virginia law, both during active practice and after closure. Under Virginia Code §32.1-127.1:03 (the Virginia Health Records Privacy Act), patients have the right to obtain copies of their medical records. Key points on access and release of records:

• Patient Requests: A patient (or their legally authorized representative) must submit a written, dated, and signed request for records, describing the information sought. If someone other than the patient requests the records (e.g. a parent, guardian, or power of attorney), they must show proof of their authority to act for the patient. The law accepts photocopies or faxes of the signed request as if they were originals.
• Timely Response: Once a request is received, the healthcare provider has 30 days to respond. The provider’s response can take a few forms: providing a copy of the records (or electronic access to them), informing the requester that the records don’t exist or can’t be found, informing them if another provider now holds the records, or (in limited circumstances) denying the request for specific reasons allowed by law. If a practice has closed and a custodian or another practice now maintains the records, the patient should be informed of the new location of their records within that 30-day window.
• Reasonable Copying Fees: Virginia allows practices to charge a reasonable, cost-based fee for copying records for patients. This fee can include the cost of supplies, labor, and postage only (and any costs for drafting a summary or explanation if the patient agreed to that). Importantly, the closure notice you send to patients should mention any fees for obtaining records. The law also sets specific caps on charges if records are requested for litigation purposes, but for patient access the rule is simply actual cost-based fees.
• Continued Access After Closure: Even after the practice closes, patients retain the right to get their records for the duration of the retention period. Physicians must ensure that records are still accessible to patients. This often means arranging a custodian of records or transferring records to another provider. For example, some physicians contract with a medical records custodian service to handle release of records to patients post-closure. In Virginia, if you have appointed a custodian (or another practice has taken over patient care), include that contact information in the notification letter so patients know whom to contact for their files. It’s wise to also leave your forwarding address or contact info with the local post office and with the Virginia Board of Medicine in case patients seek help locating their records.

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 Virginia’s medical record retention requirements, consult the Virginia Law Website.

Virginia Medical Board Notification Requirements

Besides notifying patients, physicians often wonder if they need to notify the Virginia Board of Medicine (the state licensing board) when closing a practice. Virginia law does not explicitly mandate a formal notification to the Board of Medicine about a practice closure or retirement. The primary legal duty is to notify patients, as discussed above. However, industry best practices and guidance suggest that physicians should inform the Board (and other relevant agencies) of their plans to close the practice:

• Notifying the Board (Recommended): The American Medical Association and other medical organizations advise that state medical boards be notified of anticipated practice closures or relocations. By informing the Virginia Board of Medicine, you create a record that your practice is closing and document how patients can obtain their records. This can be helpful if patients contact the Board after your closure seeking information on their doctor or medical records. It also demonstrates your compliance and professionalism in the eyes of the regulator. While not a statutory requirement, sending the Board a copy of the patient notification letter (which includes the closure date and record retrieval details) is a good step. The ACP (American College of Physicians) recommends including key details such as the designated records custodian and any referral contacts in the notice you send to the board.
• Records Custodian Information: If you have arranged for a custodian of records (for example, a company or another practice that will store and release your patient records), it’s wise to give the Board of Medicine the name and contact information of that custodian. Desert River Solutions (a medical record custodian service) notes that as part of closing a practice in Virginia, physicians should notify the state medical board about who is taking over custody of the records. This ensures the Board can direct any patient inquiries appropriately in the future.
• Licensing and Contact Updates: Even if you’re retiring or moving out of state, remember to update your contact information or address with the Board (a requirement for Virginia licensees). If you maintain an active Virginia medical license, you are obligated to keep a current address on file. There may also be options to put your license into inactive status or retire status – these require communication with the Board. While this is more about licensure status than practice closure, it’s an important consideration so that you continue to receive any official notices.
• Other Entities to Notify: In addition to the Board of Medicine, closing physicians should notify other agencies and partners. For example, the U.S. Drug Enforcement Administration (DEA) should be notified in writing if you will no longer be prescribing (you may need to surrender your DEA registration). Similarly, Medicare, Medicaid, and insurance payors should be informed of the practice closure, as well as hospital medical staff offices if you have privileges. While these notifications go beyond Virginia-specific requirements, they are part of a comprehensive closure plan. The Medical Society of Virginia or other professional associations can provide checklists to ensure you don’t miss any steps in the winding-down process.

Additional Resources for Closing Your Medical Practice in Virginia

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

• Code of Virginia § 54.1-2405 – Notice of Practice Closure
• Virginia Board of Medicine – FAQs on Medical Records and Closing a Practice
• Virginia Administrative Code 18 VAC 85-20-26 – Patient Records
• Medical Society of Virginia – Medical Records Retention Guidelines (PDF)

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