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What public-record checks should you run before a letter of intent?

Before a letter of intent, check four public records: each dentist’s license status, the selling entity’s state filings, the federal exclusion list and any disclosed data breach. Under the HIPAA Breach Notification Rule, notice to individuals is due without unreasonable delay and no later than 60 calendar days after discovery (deal-sourcing guide).

By DDSIntel Editorial· Published · Data as of

Key numbers

Which public records are worth checking first?

Start with the state licensing board for every dentist who will practice there, the state corporate registry for the selling entity, the federal provider registry for matching practice details, and the federal exclusion list. Each is free or low cost and answers a yes-or-no question that can end a deal.

The federal provider registry, NPPES, is published as a monthly file with weekly updates (CMS), and the methodology lists each record category DDSIntel reads.

Why check the federal exclusion list?

The HHS Office of Inspector General keeps a list of individuals and entities excluded from federal health care programs. A practice that employs an excluded person can face payment and penalty problems. Checking the list for the owner, the entity and the staff before signing is a routine, inexpensive step.

Compliance signals explains why exclusions also matter as a transition signal.

What does HIPAA breach history tell a buyer?

Breaches of unsecured patient information must be reported to affected individuals within 60 days of discovery, and to HHS at the same time when 500 or more individuals are affected. A buyer should ask whether any breach occurred, whether notices were made, and what controls the practice has now.

This is a diligence question for counsel and a security review, not a public-record lookup alone. Ask for the practice’s written policies and incident log.

What comes after the public-record checks?

Financial, clinical and legal diligence: collections and payer mix, treatment and records quality, the lease, employment terms and any pending claims. Public-record checks screen deals cheaply, while the later steps decide price and terms. Counsel and a CPA should lead them.

See asset versus stock purchase, owner outreach and consent and building a dental acquisition pipeline. Counts of dentists are in the dental market data.

Frequently asked questions

Do public-record checks replace full due diligence?

No. They screen for deal-ending problems before you spend on legal and financial review.

Can DDSIntel run these checks for me?

DDSIntel publishes aggregate signals only and does not provide practice-level reports on public pages.

What if a license is inactive?

Ask the seller why. It can be routine or a problem; confirm who will lawfully treat patients after closing.

Is this a legal checklist?

No. It is general information. Counsel should tailor the list to the deal and the state.

Sources

  1. U.S. Department of Health and Human Services (HIPAA Breach Notification Rule). 45 CFR 164.404, Notification to individuals. law.cornell.edu.
  2. U.S. Department of Health and Human Services (HIPAA Breach Notification Rule). 45 CFR 164.408, Notification to the Secretary. law.cornell.edu.
  3. HHS Office of Inspector General. Exclusions FAQs. oig.hhs.gov.
  4. Centers for Medicare & Medicaid Services. NPPES data dissemination. cms.gov.
  5. ADA Health Policy Institute. The dentist workforce. ada.org.

Questions or corrections: request a correction. Markdown version: /deal-sourcing/public-record-checks-before-loi.md.