In this week’s episode of The Healthcare Compliance Pod, we explore a topic that doesn’t always get much attention but plays a critical role in protecting your organization: your record retention policy.
While it may not sound exciting, a solid, well-implemented policy is an important compliance tool. It helps ensure you meet your legal obligations, can defend against audits and litigation, and manage your resources responsibly.
What is a record retention policy?
A record retention policy outlines how long your organization keeps different types of records—and when and how those records are destroyed. This includes everything from medical records and billing documents to contracts, HR files, and compliance materials. The goal is to ensure that your organization keeps the right records for the right amount of time, based on applicable federal and state requirements, and that it disposes of them appropriately once those requirements are met.
Why it’s so important
There are several key reasons every healthcare organization should pay close attention to its record retention policy:
- Defending against litigation or audits
Records can be critical evidence if your organization faces a malpractice claim, government audit, or other dispute. Keeping documentation for the applicable statute of limitations ensures you have the materials you need to defend your actions and support your billing. - Legal requirements
Laws like HIPAA require healthcare entities to retain certain records for specific periods. HIPAA, for example, requires you to keep compliance documentation for six years. Other laws, such as those governing tax, employment, or benefits, may have their own timelines. A written policy helps ensure you’re meeting all of these obligations. - Managing costs and efficiency
Retaining everything forever wastes space, time, and money. A clear policy ensures you destroy records when they’re no longer needed, freeing up resources and reducing the volume of data you must manage and secure. - Supporting proper document destruction
A good policy that is followed consistently provides protection from allegations the organization inappropriately destroyed documents. As long as records are destroyed in accordance with your policy—and before any litigation or investigation is anticipated—you can demonstrate that there was no intent to hide or destroy evidence. Having a policy which also addresses how the organization will handle litigation holds and preserve evidence is also important.
Check out our podcast this week for tips on how you can ensure your record retention policy is helping your organization mitigate risk.
