Medical Records Management: Best Practices for Healthcare Providers

Corodata TeamJan. 23, 2026 | Medical Records, Records Management |

Table Of Contents:

Medical records contain highly sensitive patient data that healthcare facilities must always safeguard for confidentiality and trust. The Health Insurance Portability and Accountability Act (HIPAA) also requires organizations to follow rules when handling health records, whether they’re collecting data or destroying files. Understanding and implementing the medical records management best practices that we discuss in this guide keeps you compliant and upholds patients’ privacy as required.

Why Proper Medical Records Management Matters

Proper management of healthcare records is compulsory for compliance with state and federal laws, but it also yields other benefits, such as reducing operational costs and supporting the delivery of quality care.
  • Meeting HIPAA compliance and protecting patient privacy: HIPAA outlines how medical providers and institutions should handle healthcare information, from data collection to storage, access, disclosure, and disposal. Penalties for violating these rules are steep, including millions in fines, jail time, reputational damage, and, in severe cases, license revocation by state boards.
  • Reducing liability and ensuring audit readiness: The Office for Civil Rights (OCR) enforces HIPAA rules by regularly auditing how healthcare facilities handle patient records. Ensuring proper management protects the institution and its staff from costly liabilities.
  • Supporting quality of care with accessible, well-organized records: Poorly organized records can lead to misdiagnoses, treatment errors, and delayed care due to missing information or mismatches in detail. Implementing best practices for medical records management streamlines operations by closing information gaps.
  • Increasing efficiency and lowering storage costs: Disorganized storage boxes occupy a lot of space, while cluttered electronic records cause overwhelm. Investing in proper records management frees up this space and contributes to operational efficiency.

Key Components of a Compliant Medical Records Management System

pro tip

Patient data is highly protected, and thus compliance is a critical issue in the management of healthcare records.

Standardized Record Creation & Classification

To ensure consistency across different systems and facilities, HIPAA and other laws outline uniform templates, naming conventions, and filing methods for healthcare facilities to adapt.
  • Templates: Structured templates for recording patient data in electronic health record (EHR) systems ensure consistent formatting and data quality.
  • Naming conventions: Universally recognized medical codes for classifying health data establish standardized reporting for different use cases.
  • Indexing and metadata: For easier organization and retrieval, healthcare providers and facilities must adhere to standardized titling and indexing rules for medical records.

Secure Access Controls & Permissions

HIPAA’s Privacy and Security rules outline different ways organizations can safeguard patients’ protected health information (PHI) to prevent fraud and abuse, including:
  • Role-based access: The record manager creates different roles and assigns or restricts access depending on a person’s job. For example, a doctor needs access to lab results and medical history data, while the cashier likely needs access only to billing and medical coding data.
  • Monitoring and logs: These are paper and electronic reports documenting parties who handle and access patient records. They provide an audit trail and are meant to detect suspicious behavior.

Data Backup Disaster Recovery

The Security Rule under HIPAA requires contingency plans for protecting electronic patient records (ePHI) in the event of disasters, such as fires, system breaches, and natural disasters.
  • Offsite media vaulting: Organizations must back up their critical ePHI in an offsite location with regular data updates and systems testing. The 3-2-1 rule, for instance, recommends having three copies of particular data on two types of media, with one offsite.
  • Redundant digital backups: To minimize downtime and ensure data availability, HIPAA-compliant records management also requires organizations to back up medical records copies in digital media for ease of retrieval and access.
  • Emergency retrieval procedures: Healthcare institutions must also have documented plans to rapidly access and retrieve records in the event of disruptions, prioritizing the continuity of patient care.

Medical Records Retention Requirements

Patient records compliance also includes laws on how long organizations must retain certain types of data for different uses, such as ongoing care, medical research, administration, and legal needs.

Federal Requirements

HIPAA requires all covered entities and their business associates to preserve compliance-related documentation for at least six years from the day of creation or last effective date. However, there are no HIPAA retention laws for medical records. Documents covered under this rule include:
  • HIPAA employee training records
  • Risk analysis and assessment reports
  • PHI disclosure authorizations
  • Disaster recovery and backup plans
  • Security systems testing reports
The Centers for Medicare & Medicaid Services (CMS) also outlines retention periods for certain patient records, including 5 years for cost reports and 10 years for patient records under the Medicare program.

State-Specific Requirements

For most medical records, healthcare organizations refer to their state’s specific retention laws. In California, for example, doctors and hospitals must retain patient records for at least seven years from the date of their last use. If you’re unsure whether to apply a federal or state law on medical records retention, always go with the longer period.

Retention for Adults vs. Minors

Healthcare records retention periods for minors are longer to accommodate continuity of care and serve as evidence in malpractice lawsuits. For example, the patient records retention period in Arizona is six years for adults and three years after the eighteenth birthday for minors, whichever is longer.

Special Categories of Medical Records

Some medical institutions also have the mandate to specify retention periods, especially for special types of medical records. The College of American Pathologists (CAP) outlines retention periods for certain medical lab results, including blood donor records and surgical pathology. Download our records retention schedule guidelines eBook to understand the specific retention laws that may apply to your healthcare practice. Download the Records Retention Schedule Guidelines

Best Practices for Physical Medical Records Management

Physical records can be hard to manage because they require manual creation, filing, and storage. Some records also require specialized storage environments, further complicating proper oversight. You can improve physical records handling by implementing:

Secure Offsite Records Storage

Offsite medical records storage is meant to store your documents and other materials physically away from the facility. Records storage providers with offsite storage determine how to store your records, giving you more time to care for your patients or other business operations. The key features of ideal offsite records storage in healthcare are:
  • Controlled environments: Offsite records storage must be highly secured to control access and specially constructed to protect the records from environmental disasters.
  • Barcode tracking: Barcodes itemize your physical medical files into digital records, making them easier to file, access, and track in real time.
  • Chain of custody: Due to medical records’ sensitivity, offsite storage must have a documented audit trail of every person who handles the files for accountability.
  • Climate-controlled storage for sensitive medical items: Some health records, such as pathology slides, microfilms, and X-rays, require special offsite storage with controlled temperatures and humidity for data preservation.

Organized Box Labeling & Inventory Tracking

Besides barcodes, healthcare organizations can also create digital inventories listing physical files with identification details. This makes it easy to label and track records, allowing real-time sharing and automatic updates across systems.

Purging & Shredding Policies

Medical records that have reached the end of their lifecycle must be disposed of securely to protect the environment and safeguard patient data.
  • The National Association of Information Destruction (NAID) AAA–certified shredding: The NAID AAA certificate is a stamp of approval by the Certified Protection Professionals to confirm a facility’s commitment to data security and application of rigorous tests for secure destruction processes.
  • Certificates of Destruction: After purging and shredding records, a certificate of destruction proves you followed all guidelines and is crucial for compliance and records management process auditing.
  • Scheduled rotation vs. purge shredding: Scheduled shredding handles routine records destruction needs to ensure compliance and seamless operational workflow. Purge shredding, on the other hand, disposes of large bulks of record backlogs, such as after annual audits or during major office cleanups.
Download our Free HIPAA Compliance Checklist

Best Practices for Digital & Hybrid Records Management

Hybrid records management balances physical and digital medical records based on various prioritization factors, allowing healthcare organizations to combine the ease of working with digital records with the need for hard-copy files.

Scanning & Digitization Prioritization

Creating an efficient hybrid system begins with auditing medical records to prioritize digitization efforts. Frequently accessed files, shared documents, and legally-mandated records should be the first to scan. Expired files, temporary records with short retention periods, and records that must be in physical form can remain in physical form to avoid over-digitization and save storage costs.

Secure Digital Storage & Encryption

Digital records are easy to retrieve, share, and edit, but they are also prone to security breaches and unauthorized access. Features and systems you can apply to secure digital storage and encryption include:
  • Multifactor authentication
  • Automated backups
  • Role-based access
  • End-to-end data encryption
  • Access audit logs

User Training & Policy Updates

Training equips users with the knowledge required to manage digital records, including technical skills, regulations compliance, and security protocols. This translates the benefits of proper medical records management practices to patients through improved quality of care, faster file retrieval, and consistent data accuracy. After digitization, organizations must update their data policy to reflect all the changes. Some of the key issues to address in the policy include:
  • Risk mitigation
  • Response procedures in case of a data breach
  • Records access control
  • Data sharing and exchange policies
  • Records retention schedules

Medical Records Disposition: Compliant Destruction of Patient Files

Disposition is the destruction of a medical record and its contents when it’s no longer in use. There are various record disposal methods, and the right one often depends on the type of storage medium. While HIPAA’s rules don’t specify how to dispose of end-of-life healthcare records, they require covered entities to ensure the safety of PHI during destruction, both physical and electronic. Organizations must destroy data so that it’s unreadable and unrecoverable to prevent breaches that can expose patient data. Common disposition methods for patient records are: After destruction, you must acquire the proper official documentation to prove compliance with secure and appropriate disposition procedures. A certificate of destruction is a compulsory document that contains details such as the date of destruction, the type of record, the method of disposal, and witness signatures. If you hire a third-party records management provider, you must both sign a Business Associate Agreement to ensure the company adheres to HIPAA safeguards for PHI.

How to Choose the Right Records Management Partner

A records management provider can help you implement the medical records management best practices highlighted above. But not all providers provide the same level of service and accountability. The key factors you must consider when choosing a medical records partner are:
  • HIPAA compliance: Working with a HIPAA-compliant records manager automatically means you comply, too. Ask a potential provider for an active HIPAA compliance certificate before you decide to work together to avoid violating HIPAA unknowingly.
  • Experience handling medical files: When comparing different providers, ask about their experience and past case studies managing medical records from storage to destruction. This showcases the industry experience required.
  • NAID AAA certification: Records management partners with NAID AAA certification have undergone and passed rigorous audits of their disposal processes, which often occur without prior notice. This means they are more reliable.
  • Chain of custody: A transparent chain of custody provides a clear overview of parties handling your records, which offers peace of mind and an audit trail to track access.
  • Climate-controlled storage options: If your facility handles critical medical materials, such as pathology slides and biological samples, the records management partner you choose must have the right climate-controlled infrastructure to accommodate your storage needs.
  • Scanning capabilities: Scanning converts physical files into digital images that are easy to store, search, and retrieve. Your best bet for reaping the rewards of digitizing operations is by working with a company that provides quality scanning services.
  • Disaster recovery solutions: HIPAA requires all healthcare providers to have disaster recovery plans and policies that prevent data loss and ensure continuity of operations in case of storage disruptions, such as cyberattacks, floods, and fires.

Corodata’s Healthcare Records Solutions

From scanning to storage and secure medical document shredding, Corodata has the infrastructure and expertise you need to protect patients’ privacy and comply with HIPAA laws. You can expect these features (and more) from Corodata’s healthcare records solutions:
  • Offsite medical records storage: We have five offsite records management locations across California, so you can free up valuable space at your healthcare facility.
  • Climate-controlled vault storage: For critical medical records, such as pathology slides, tapes, and imaging, that require special storage, Corodata offers climate-controlled vaults with restricted access and 24/7 security.
  • HIPAA-compliant shredding with Certificate of Destruction: With our NAID certification and the Certificate of Destruction we issue after shredding services, you can rest assured that you’re compliant with HIPAA laws when you let Corodata handle your medical records management.
  • Scanning and digital access workflows: We offer scan-on-demand services for accessing a single document in your archive, and high-volume scanning for digitizing documents in bulk.
  • Secure transportation and chain of custody: Corodata maintains the highest levels of compliance, accountability, and privacy for your medical records through secure transfer vans and a transparent chain of custody you can track in real time.
  • Client portal for easy file management: Our online client portal allows authorized persons to access records anytime, track offsite physical files, request records delivery, ask for pickup, and more.

Final Thoughts

The best practices for medical records management are not about storing data only. They also guarantee HIPAA compliance and security from unauthorized access. Proper records management improves collaboration among healthcare providers by making file sharing easier, boosting operational efficiency, and enhancing patient care.

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