
The American Medical Association provides further guidance for the transfer of patient records upon the sale of a medical practice. “Health care operations” include business management and general administrative operations of the entity, including the sale, transfer, merger or consolidation of all or part of the covered entity with another covered entity. This is permitted because the buyer, as a business associate, is using the PHI from the seller for “health care operations”, a permitted use under HIPAA. PHI) with the buyer pursuant to a HIPAA-compliant Business Associate Agreement.

Furthermore, the seller is permitted to then share his or her patient files and medical records (i.e. This can be accomplished by ensuring there is either a holdover of the old practitioner within the new practice–as an employee or an independent contractor. Sharing Patient Files and Medical Records through Business Associate AgreementĪs the above transition is unavoidable, buyers and sellers can and should embrace it. Unfortunately, this often leads to the sale of the practice taking much longer than what might be within the parties' expectations. As such, when moving forward with a contemplated sale of practice, it is important that the mechanics of informing patients of the contemplated sale and providing them the option to choose their own provider is incorporated into the timing of the transaction. Specifically, medical records and other personal health information should not be transferred to another health care practitioner or practice without the patient’s informed consent. Pursuant to state and federal regulations, patients must be given the option to choose another health care provider and/or have a copy of their medical records sent to the physician of their choice. Namely, you need to be aware of the requirements for patient consent of the transfer of files and HIPAA Compliance. However, in addition to the traditional machinations of such a transaction, you will need to receive consultation from an attorney aware of additional aspects of the healthcare profession that make the sale of a practice more difficult. Termination – what will trigger cancellation of the transaction?Īll of these questions warrant consultation with an attorney with experience in structuring such transactions.Holdover – how long should I remain onboard and accessible to the buyer – as an employee or an independent consultant?.Assumption of risk, indemnity – how is it expressed and covered?.


Restrictive Covenant – duration? location? key employees?.
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