Chart Sales

After a lifetime practicing, when or how to sell your dental practice is a vitally important decision with many factors to weigh. For certain practitioners, selling their patient chart maybe an attractive alternative to selling their practice as a whole. But does the sale of only patient charts from one dentist to another require authorization from or notice to patients, which could be a significant undertaking for both the buyer and seller? And, how does the sale of the practice as a whole trigger these same authorization or notice requirements? 

The primary law governing health care information including its transferability is the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”). A quick review of HIPAA often leaves health care practitioners with more questions than answers. Generally, the sale of protected health information (“PHI”), such as patient charts, is strictly limited. Where the sale includes a disclosure of PHI under HIPAA, patient authorization or notice may be required. However, a few specific exemptions are available where the disclosure of PHI is made during a sale, transfer, merger, or consolidation of all or part of a covered entity, including a dental practice. The transfer of PHI is further allowed when the sale, transfer, merger or consolidation of the practice is between two dentists, as they are both deemed “covered entities” under HIPAA.

Because the sale of patient charts falls within the above described exception, no patient authorization or notice is necessary for such a transition. This exception allows dentists and their advisors to complete due diligence and actually transfer the patients charts in connection with a sale, transfer, merger or consolidation with another dentist without the need to obtain the patients’ advance written approval. 

Of course, each state may also have its own rules and regulations regarding the portability of health information, as well as the sale of dental practices. In the State of Illinois, the Illinois Dental Practice Act and its accompanying administrative rules do not contain any additional requirements concerning the sale of patient charts. If you have any questions or concerns about how to handle a sale of a dental practice, please call us at (630) 833-5533 or contact us online to arrange a complimentary consultation.