Case guide

UPDATED FEB 2026

Hospital Credentialing Negligence

Part of the Medical Malpractice investigation

The short answer

Hospitals are responsible for the physicians they allow to practice within their walls. When a hospital grants surgical privileges to a physician with a documented history of incompetence — prior malpractice claims, disciplinary actions, or training deficiencies — and that physician then harms a patient, the hospital faces direct liability for negligent credentialing, independent of whether the physician's individual conduct was negligent.

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What Is Credentialing and Why Does It Matter?

Medical staff credentialing is the process by which a hospital verifies a physician's education, training, licensure, board certification, and competency before granting them clinical privileges — the right to practice in the hospital. Credentialing committees review applications, check primary sources (medical schools, residency programs, state medical boards), query the National Practitioner Data Bank (NPDB), and make recommendations to the medical staff executive committee. When this process is done correctly, it serves as a critical safety gate — identifying physicians with a history of adverse outcomes, disciplinary actions, or substance abuse before they can harm hospital patients.

Negligent Credentialing as a Basis for Hospital Liability

When a hospital fails to check the NPDB (which contains records of malpractice payments and adverse privileging actions against all licensed providers), fails to follow up on gaps in a physician's employment history, fails to verify board certification, or ignores red flags in a physician's background — and a patient is harmed by that physician — the hospital faces direct corporate liability for negligent credentialing. Discovery in negligent credentialing cases seeks internal credentialing files, peer review minutes, and NPDB query results. While peer review documents are privileged in most states to encourage candid quality review discussions, courts have allowed limited discovery of credentialing committee documents when corporate negligence is at issue.

Key data

Data & Statistics

1 SOURCED FIGURE

Hospitals are legally required to query the National Practitioner Data Bank when credentialing physicians — failure to do so is independent evidence of negligent credentialing

Health Care Quality Improvement Act (HCQIA)

FAQ

Frequently Asked Questions

12 QUESTIONS

Medical malpractice occurs when a healthcare provider — physician, surgeon, nurse, hospital, or other licensed provider — deviates from the accepted standard of care and that deviation causes preventable harm to a patient. The standard of care is defined as what a reasonably competent provider in the same specialty would have done under the same or similar circumstances. Malpractice is not simply a bad outcome — medicine involves inherent risks, and a patient can suffer a serious complication even with perfectly delivered care. To be malpractice, the provider must have acted negligently: doing something a competent provider would not have done, or failing to do something a competent provider would have done.

Dive deeper

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The full investigation

Part of the Medical Malpractice Investigation