When purchasing a dental practice, the buyer must navigate complex privacy laws to ensure compliance with regulations that protect patient health information. In jurisdictions such as the United States, these obligations are governed primarily by the Health Insurance Portability and Accountability Act (HIPAA). Similar protections exist in Canada under the Personal Information Protection and Electronic Documents Act (PIPEDA), and in other regions through local privacy laws.
One of the buyer’s primary responsibilities is to safeguard Protected Health Information (PHI). Prior to the acquisition, access to patient records should be limited and anonymized unless patient consent has been obtained or a Business Associate Agreement (BAA) is in place. The buyer must avoid reviewing identifiable patient data during due diligence unless explicitly permitted under law.
Upon closing the transaction, the buyer inherits the legal duty to maintain and protect the confidentiality, integrity, and availability of patient records. This involves implementing secure systems, access controls, and data encryption, as well as training staff on privacy procedures. The buyer must also ensure continuity of care and record retention in accordance with professional regulations, often ranging from 7 to 10 years depending on jurisdiction.
Furthermore, buyers must provide patients with updated privacy notices if there are changes in data handling practices. If the practice experiences a change in ownership, patients may need to be informed and given an opportunity to transfer their records if they choose not to remain with the new owner.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.