In a physician credentialing case with significant repercussions for healthcare institutions, a Louisiana hospital and two physicians were recently ordered to pay a $4.1 million verdict for failing to disclose the background of an anesthesiologist whose alleged drug-induced negligence left a patient in a permanent vegetative state. Saying it relied on two positive reference letters in issuing credentials to the anesthesiologist, Kadlec Medical Center in Richland, Washington, then sued the Louisiana medical group that previously employed the anesthesiologist and medical center that had gave him staff privileges.
The lawsuit alleged intentional misrepresentation, negligent misrepresentation, strict responsibility misrepresentation and negligence. On May 26, 2006, a U.S. District Court jury agreed, awarding damages to the Washington hospital (Kadlec Medical Center v. Lakeview Anesthesia Associates).
While that verdict is now under appeal, its clear that hospitals across the nation need to review their information disclosure policies and credentialing procedures in light of the Kadlec Medical Center decision. The communitys right to know all the facts supersedes a physicians right to personal privacy.
It is essential for hospitals to implement a formal disclosure procedure appropriate for todays legal environment and make sure that every step in the process is followed correctly and consistently. The bottom line: Any disclosure must always be made in good faith, without malice, and be as complete as possible.
In a physician credentialing case with significant repercussions for healthcare institutions, a Louisiana hospital and two physicians were recently ordered to pay a $4.1 million verdict for failing to disclose the background of an anesthesiologist whose alleged drug-induced negligence left a patient in a permanent vegetative state. Saying it relied on two positive reference letters in issuing credentials to the anesthesiologist, Kadlec Medical Center in Richland, Washington, then sued the Louisiana medical group that previously employed the anesthesiologist and medical center that had gave him staff privileges. 
