Some dentists may close their practices due to retirement; others may face other financial challenges. A surviving spouse who is suddenly left with the daunting task of selling or closing a practice will also find this guide useful.
Along with the distress that usually accompanies the unexpected death of a business owner, there is often confusion about the roles and functions of the staff and family. Use this checklist to assist in the immediate decisions that need to be made within the first week following a death of the dentist.
Prior to closing a practice, a dentist or surviving spouse should decide if the practice can be sold. Dentists and others considering closing a practice should always seek professional advice. Advisors could include a legal expert, accountant or dental practice valuator
It is always a good idea for a dentist to make plans in advance for the sale or closing of the dental practice due to their disability or death. For the benefit of the surviving spouse, keep important papers in a single location; or at least, identify where essential documents can be found. Designate a “transition team” (accountant, lawyer & practice broker with dental client experience) and instruct them on how to proceed to a closing or sale depending on the circumstances.
Closing a practice should be handled in accordance with applicable laws. If possible, the dentist who is planning to close a practice should notify patients well in advance that the practice is closing. Notice of 30 - 60 days is sufficient for most patients and circumstances.
It is generally advisable once a closing date is determined, that no treatments be started that cannot reasonably be completed before the practice closes. However, when a dental practice must be closed rapidly or unexpectedly, it may be necessary to help patients currently undergoing extensive treatment find a new dentist who is willing and able to take their treatment to completion.
Helping a patient locate and continue treatment with another dentist could avert an allegation of patient abandonment or other charge. It is also a compassionate, thoughtful way to discontinue a professional relationship.
With the patient’s permission, the dentist should release treatment information or a copy of the patient’s record to the dentist accepting the case. You may wish to request notification when the patient completes the treatment. This information could be useful should there later be an allegation of patient abandonment or malpractice.
Patient records must be handled in accordance with applicable laws. Failure (or refusal) to release necessary information to another dentist for a patient’s continuing care may be illegal and may be viewed as an unethical practice by your professional association. You should not refuse to release a patient’s treatment information or records due to an outstanding payment.
Before transferring records to another practitioner patient consent must be obtained.
General releases may not suffice for records containing HIV or other sensitive material. Any information regarding health issues should be handled with caution and special regard for the patient’s privacy. Even if appropriate authorization and consent is received, dentists and other health care professionals may be legally precluded from releasing HIV/AIDS records without specific reference to that information in the release. Some states have heightened confidentiality provisions for sensitive information, such as HIV status.
If the practice has been sold, the sales agreement itself may spell out the terms for record retention and access. The sales agreement clause related to patient records would typically permit the seller for a specified period of time to have access to the patient charts, records and x-ray file in connection with the practice sale transaction to allow review and making of copies for defense of malpractice litigation or to respond any inquiries from licensing or regulatory authorities.
Records should be stored in moisture and fire resistant containers. As per dentist and regulation of state and participating provider contracts generally specify the time following the last patient visit that records must be maintained. There is usually a different requirement for the retention of records of children; these records must be kept for a certain period after the child reaches the age of majority. Dental clinic must maintain patient records for eight (8) years and two (2) years after a patient’s death. The dental office should have a records retention policy and all staff should understand it.
Do not burn patient records containing radiographs as the heat could release dangerous metals. In addition to being familiar with patient recordkeeping requirements, a dental office also needs to retain other records. These records also may have statutory retention requirements. Here is a typical schedule of retention periods. Yours may be different. Consult with a legal expert to establish your own schedule.
An estimation of the dental equipment’s salvage or resale value can vary depending on the appraiser or on unique circumstances. Age, serviceability, difficulty of removal, and compatibility with existing systems can be principal determinants of the value of salvaged dental equipment.
