Patient records transfer

Selling a medical, dental or veterinary practice involves more than handing over a client list. Patient records are governed by provincial health information privacy legislation and by the seller’s professional college, which means custodianship — not simple possession — decides who is legally allowed to hold and use those files after closing.

What generally has to happen before records change hands

• Patients are typically notified of the change in custodian and given a reasonable opportunity to object or request their file be sent elsewhere.
• The incoming practitioner or corporation generally has to qualify as an eligible custodian able to safeguard the records under the applicable privacy regime.
• A data-sharing or custodial agreement is often signed before files are physically or electronically transferred, even in an asset sale.
• Retention obligations continue for patients who never return, so the buyer inherits ongoing duties, not just a completed transaction.

Why this matters for the deal

Skipping the notification and custodial steps can create liability for both the seller and the buyer, and it can stall closing if a privacy regulator or professional college needs to weigh in first. Buyers relying on patient volume as part of the purchase price should confirm how records are stored and who holds custodial responsibility for patients who have not returned recently.