We receive questions concerning the steps that are required or necessary in connection with the closure of a medical practice. Typically, a physician who has devoted their entire life to the day-to-day practice of medicine is faced with numerous legal, accounting, and administrative tasks, some of which extend beyond the actual shut-down of the practice. Planning, organization, communication, and administration are key elements to avoid issues after the closure.
Practice closure matters include but are not limited to:
Staff Notification: Staff of the practice should be notified of the closure. A physician may have to prepare to hire temporary staff if employees leave prior to closing date.
Patient Notification: The State Medical Board of Ohio (“Ohio Medical Board”) has laws and rules pertaining to the notice that a physician is required to give patients. These laws and rules include, but are not limited to, when notice must be given, the information that is required to be included in the notice, and how notice must be given.
Government/Payor/Agency Notifications: Notice concerning the closure of the practice must be coordinated and given to entities including, but not limited to, the DEA, Medicare, Medicaid, private insurance payors, hospitals, professional associations, and the Ohio Medical Board. Each entity may have different requirements.
Professional Liability Insurance: If necessary, extended reporting professional liability insurance (so called, “tail coverage”) should be obtained, which provides coverage against claims reported after the liability policy expires.
Medical Records: The storage or transfer of paper and electronic medical records in compliance with Federal and State law including, but not limited to, HIPAA must be completed. An address or PO Box to receive, and procedure to respond to, medical records requests after the closure of the medical practice must be established and followed.
Service and Supply Providers: Notice concerning the closure of the practice to providers including, but not limited to, providers of ancillary services, medical supplies, and other services and supplies should be coordinated and given. Accounts with such providers should be closed.
Business Entity Issues: Termination of any Lease Agreement(s), termination of utilities services, collection of accounts receivables, sale of medical and office equipment, dissolving the medical practice legal entity with the Ohio Secretary of State, and filing of final Federal, State, and local tax returns must be coordinated and completed.
If you have any questions about this blog or the State Medical Board of Ohio, please feel free to contact one of the attorneys at Collis Law Group LLC at (614) 486-3909 or email me at Todd@collislaw.com.