Perhaps you have reached the day when you have decided to close your practice. Closing out a practice (or selling one) can be a daunting task. However, planning and inclusion of the appropriate professionals with sufficient lead time can make the process less hectic. Some necessary partners include patients, payers, vendors, employees, licensing boards and federal and state agencies. Getting legal advice is important for either a sale or complete closure. Each state where you maintain a license will have different procedures as to patient notification and medical record retention or transfer. The malpractice carriers also have a say. The list below discusses some of the key steps to take.  

1. Talk to your staff – Your staff should hear the news from you first, not anyone else. You can help with the transition to new employment either through a sale or closing. They will have questions regarding their salaries, benefits, and retirement plans.  

2. Notify your patients – Send your patients a letter notifying them of your intent to close the practice. Let them know where their records will be kept and who to contact for a copy. 

3. Review your insurance contracts – business insurance, workers compensation, and other carriers need notice. If you have an agent, talk to the agent about the termination process.  

4. Speak to your malpractice carrier- the malpractice carrier will discuss options about tail coverage, which can allow an insured physician the option to extend coverage after cancellation or termination of a claims-made policy. The carrier may also have requirements about patient notification. 

5. Contact hospitals where you have admitting privileges. The hospital may have a formal process to be followed. 

6. Reach out to your landlord – review your leasing agreement and discuss steps to terminate the lease.  

7. Notify referring physicians of when you plan to close your practice, so they don’t send new patients after that date. 

8. Contact the Drug Enforcement Agency to deactivate your license if you plan not to write another prescription and after you have safely disposed of prescription drugs following the federal guidelines. Destroy all prescription pads and contact drug representatives to determine what to do with unused samples, if needed. 

9. Inventory drugs – you will need to dispose, sell, transfer, or donate according to federal and state requirements. Contact the Drug Enforcement Administration (DEA) for specifics. 

10. Notify all vendors. Inform medical suppliers, office suppliers, collection agencies, laundry services, housekeeping services, hazardous waste disposal services, and any other vendors. Make sure to request a final statement from them so you can close your accounts. 

11. Process your accounts receivable to collect money owed to you. Consider employing a collection agency or staff member to reconcile accounts after the practice has closed. 

12. Take a deep breath – focus on your next phase in life.  

This checklist is not meant to be all-inclusive. Speak to all relevant professionals such as attorneys, insurers, and accountants to ensure all obligations are met. Several specialty organizations provide checklists that can serve as a guide.  

Resources 

AAFP: Closing Your Practice Checklist 

Why Do Physicians Depart Their Practice? A Qualitative Study of Attrition in a Multispecialty Ambulatory Practice Network 

From Geraniums to Guadalajara on the Virtues of Early Retirement