Facility Closure Checklist - Medical Facility

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Facility Name
Conducted on
Prepared by
Location

Closure Checklist

Notifications - 60 to 90 days before closing

Staff
Organize a staff meeting to notify employees of practice closure
Prepare to hire temporary staff if current employees leave prior to closing date
Patients
Prepare and send notification to patients listing the closing date and reason for closing
Include an authorization form to transfer medical records to your patients’ new providers
Place a dated copy of the notification in each patient’s medical record
Public
Publish local newspaper ads with details about the closing
Post signage in your office to notify visitors of your last day of business
Professional Associations
Notify the state medical board, licensing board, credentialing organizations, professional memberships, etc
Drug Enforcement Agency (DEA)
Inform the DEA of your wishes to either continue or surrender your DEA registration
Health Insurance Companies
Inform all contracted payers of your intent to close your practice
Provide payers with a forwarding address to send payments that resolve after the office closes
Hospitals
Notify the hospitals where you have privileges of your intention to close your practice
Ancillary Services
Contact ancillary services such as labs, MRI facilities, etc. that you refer patients to
Suppliers/Service Contracts
Inform medical suppliers, office suppliers, collection agencies, laundry services, housekeeping services, hazardous waste disposal services, magazine subscriptions, etc.
Request final statements from these vendors to close your accounts with them.
Other Physicians
Let the colleagues that you work with, or refer to, know of your decision to close
Utilities
Notify all utility service providers of the day you wish to discontinue service

Tasks - 30 to 60 days before closing

Patient Scheduling
No new patients should be accepted once the closing date is announced
Start restricting nonemergent appointments as much as possible
Patients who need continual follow-up and care should be referred to another provider
Accounts Receivable
Process your accounts receivable, as much as possible, to collect money owed to you
Consider employing a collection agency or staff member to reconcile accounts after the practice has closed
Insurance Policies
Review your and your employees’ insurance policies and update or cancel where appropriate: i.e., liability, health, life, disability, workers compensation, etc
Obtain tail coverage extended liability insurance if necessary, which provides coverage against claims reported after the liability policy expires
Medical Records
Arrange for safe storage for both paper and electronic medical records
Notify your state medical board of the storage location
Determine the correct amount of time your medical records should be stored, as defined by your state law
Make sure the storage facility has experience handling confidential patient information and HIPAA agreements
Establish a mailing address or PO Box for medical record requests after closing
Clinic Documents & Equipment
Arrange for storage of personnel records according to your state law
Organize the disposal or proper storage of clinic documents such as financial records, patient education materials, brochures, etc
Plan to sell or lease office and medical equipment, if appropriate
Medications
Follow the federal guidelines for disposing of prescription drugs and medications
Contact drug representatives to determine what to do with unused samples, if applicable
Destroy all prescription pads
Phone Service
Consider using an answering service or prepare messaging for office phone calls after the closing date
Mail Service
Contact the postal service to coordinate mail forwarding details