In many situations, the selling of a private medical practice is little more than
selling patients’ medical records. Interestingly, there have been few legal
actions against physicians who sell medical records. In many states, it is illegal
to transfer medical information for nontherapeutic purposes without the
patient’s explicit permission. In these states, the law would seem to require
that each patient be contacted for permission to transfer the records. If the
permission is denied, the selling physician will have to retain the records. If the
patient cannot be located, then the record might be transferred under seal to
the buying physician, to be opened only if the patient contacts the physician in
the future.
It is expected that HIV/AIDS will precipitate a reexamination of the selling of
medical records. This will be especially threatening in states that make
violations of patient confidentiality a criminal act. Even in states that allow the
transfer of medical records as part of the sale of a practice, this transfer is
limited to another physician, not a lay practice broker.