Buying or selling a medical practice is more involved than the sale of most other businesses. In addition to the usual financial and staffing decisions, patient records also need to change hands during the process. In many smaller, family-owned practices, a large portion of those records may still be stored on paper.
Keeping track of which records need to stay, which need to be transferred, and how to protect patient privacy throughout the process can get complicated. Even small missteps can create headaches for staff and raise concerns for patients, so it needs to be handled carefully and consistently.
That’s why many practice owners choose to digitize patient charts before a sale. Converting paper records into digital files makes information easier to organize, share, and protect during the transition. Digitized records support a cleaner handoff, strengthen privacy protections, and help both teams move forward with confidence.
In this article, we’ll look at how patient records are handled when a medical practice changes ownership, and how a HIPAA compliant scanning provider like SecureScan can make the process easy and secure.
A Note About Legal Due Diligence and Compliance
When buying a medical practice, legal due diligence is an important part of the process, especially when it comes to handling patient health records. These records can’t be transferred to a new owner without meeting certain legal requirements. Federal and state laws, including HIPAA, require that patients be given the opportunity to authorize the transfer of their records to a new provider of their choice.
Each state also enforces its own privacy and retention rules. For example, many states require that medical records be retained for a set number of years, with additional rules applying to pediatric records. Sellers are also responsible for informing patients of their rights and ensuring their information remains secure during the transition.
Working with an attorney who understands healthcare law can help you stay compliant and avoid potential liabilities during this process. Careful attention to these requirements not only protects both parties, it also ensures continuity of care throughout the transition.
Understanding the Rules
When a medical practice changes hands, there are a few important steps you need to take to ensure that patient records are handled properly. Both federal and state regulations include rules about how these records can be shared or transferred, all with the goal of protecting patient privacy and maintaining uninterrupted care.
Legal Obligations and Patient Notification
One of the top priorities should be the legal responsibilities tied to transferring patient health records. Both the buyer and the seller must comply with HIPAA and any state-specific privacy requirements. Patients should be notified of the change in ownership and informed of their rights regarding their personal records. They must also be given the choice to authorize the transfer of their files to the new provider or request that they be sent elsewhere.
Methods of Transferring Records
Medical records can be transferred in several ways, and each comes with its own set of challenges. Paper files can be physically handed over, however, those are more easily misplaced, damaged, or exposed. Digital transfers are generally more secure and efficient, though they may require coordination between the two practices to ensure that the records are shared in a format that both can use, and that the proper security protocols are in place.
Ensuring Continuity of Care
Continuity of care is critical when a medical practice changes ownership. Any delay in accessing patient records can negatively affect treatment and disrupt the flow of care. Planning ahead with a clear strategy for transferring records minimizes or eliminates downtime, and allows both teams work seamlessly with the information they need.
The Challenges of Transferring Patient Health Records
Transferring patient records during a practice acquisition can be more complicated than it seems. Knowing what issues might come up helps both buyers and sellers prepare ahead of time and avoid unnecessary stress.
Issues with Physical Records
Paper charts are harder to manage during a change in ownership. Files can be misplaced during packing and transport, and setting up space to store them in a new location often takes more time and expense than expected. Even when everything goes according to plan, organizing years of paper records can slow the handoff considerably.Records may also need to be reorganized to match how the new practice handles patient information. That extra sorting and reshuffling adds another layer of complexity and increases the chances of something being overlooked during the process.
Privacy and Security Concerns
Paper files are more vulnerable to unauthorized access, particularly when records are being moved or reorganized. HIPAA and state laws outline clear requirements for how patient information should be protected, and missing those steps can lead to fines, legal issues, and damaged patient trust.
Technological Integration
When one or both practices use an electronic health record system, bringing those systems together takes careful planning. Data migration takes time and requires close coordination to ensure information is imported correctly and organized in a way that fits existing systems. Staff need clear processes for accessing and managing newly added records so patient information remains easy to find and consistent across the system. This helps the practice get up to speed faster and reduces friction during a change in ownership.
Maintaining Continuity of Care
Access to patient information needs to remain consistent throughout the process. Delays in locating or retrieving records can interrupt care and create frustration for both staff and patients. Clear communication around how records are managed and accessed helps maintain trust and reassures patients that their information remains protected and available when needed.
Anticipating these challenges early makes the transfer process far more manageable and helps both teams stay focused on what matters most, delivering care without disruption.
Benefits of Digitizing Patient Health Records During an Acquisition
Digitizing patient records makes the handoff between medical practices much smoother. It helps protect sensitive information, keeps everything organized, and gives both teams a clear path forward as they combine or transition care.
Stronger Security
Digital records can be encrypted, password-protected, and backed up automatically, offering a level of protection that paper can’t match. This helps prevent unauthorized access and keeps information safe, even if there’s a system issue or physical damage to files.
Better Access and Efficiency
When records are digital, staff can find what they need quickly. There’s no sorting through folders or waiting on files to be delivered, which means patients are cared for without delay and the team can focus on what really matters. It also frees up valuable office space that would otherwise be taken up by storage.
Lower Costs
Paper files take time, space, and supplies to manage. Scanning and digitizing those records saves money by cutting down on printing and storage needs. Once everything is digital, staff can spend less time filing and more time helping patients.
Easier Compliance
Digital systems make it simpler to stay compliant with HIPAA and state privacy rules. Records can be organized, tracked, and monitored so you always know who has viewed or updated them. This transparency helps both sides feel confident that patient data is being handled responsibly.
Consistency Across Locations
For practices with more than one office, digitization keeps everyone on the same page. When records are managed the same way across locations, it’s easier to coordinate care, share information, and maintain accuracy.
Better Record Retention
Digital files are easier to organize and maintain over time. Records can be tagged and stored according to required timelines without worrying about losing or misplacing them. That consistency helps both buyer and seller feel confident that everything is where it should be.
How SecureScan Can Help
At SecureScan, we make the process of digitizing medical records simple and stress-free. With more than 22 years of medical records scanning experience, our team knows how to handle sensitive patient information safely and efficiently. Every project is completed in full compliance with HIPAA standards, so you can focus on your patients while we take care of the paperwork.
Whether you’re buying or selling a practice, we’ll help you transition to digital records with ease and confidence. Contact us today to learn more or request a free quote from one of our scanning specialists.
