Buying or selling a medical practice comes with a lot of moving parts, and one of the most important involves patient records. For many practices, those files still live on paper, tucked away in cabinets, storage rooms, or boxes, many of which haven’t been opened in years. When ownership changes hands, figuring out what to do with all that paperwork can be stressful.
Keeping track of which records need to stay, which need to be transferred, and how to protect patient privacy during the process can get complicated. Even the smallest mistakes can create big headaches for both your staff and your patients.
That’s why many practice owners choose to digitize their patient charts before a sale. Turning paper files into digital records makes it easier to organize, share, and protect sensitive information throughout the transition. Digitizing patient records simplifies the handoff, strengthens privacy protections, and helps both teams start off on the right foot.
In this article, we’ll look at what happens to patient records during a practice transition, 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 protected 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 Transition Process
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 first priorities is understanding 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 medical 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, each with its own set of challenges. Paper files can be physically handed over, but that comes with risks, documents can be misplaced, damaged, or exposed during transportation. Digital transfers are generally more secure and efficient, though they may require coordination between the two practices to ensure records are shared in a format that both can use.
Ensuring Continuity of Care
Continuity of care is the main goal throughout the transition. Any delay in accessing patient records can affect treatment and disrupt the flow of care. Planning ahead with a clear strategy for transferring records minimizes downtime and helps both teams work seamlessly with the information they need.
Understanding each of these steps and preparing in advance makes the entire transition smoother and more reliable for both the practice and its patients.
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 create the biggest hurdles. They can be misplaced or damaged while being packed and transported, and setting up a new space to store them can be costly and time-consuming. Even when everything goes smoothly, organizing years of files can slow down the transition.
Privacy and Security Concerns
Patient privacy must remain a top priority. Paper files are more vulnerable to unauthorized access, and both HIPAA and state laws set strict expectations for how those records should be handled. If proper security steps aren’t taken, the result can be fines, liability, and a loss of patient trust.
Technological Integration
If either practice uses an electronic health record (EHR) system, there may be some setup work involved in getting both sides on the same page. Data migration can take time, and staff may need brief training to get comfortable with any new software. The smoother this handoff is, the faster the new practice can get up to speed.
Maintaining Continuity of Care
Access to patient information has to remain uninterrupted. Any delay in retrieving records can affect the quality of care patients receive. Communicating clearly with patients about how their information will be managed helps maintain trust and keeps everyone confident that their data is in good hands.
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.
