When patients enter a hospital for care, they trust that the facility has thoroughly vetted the competence of every physician granted privileges to treat patients there. A recent decision from Maryland demonstrates that hospitals cannot insulate themselves from liability for negligent credentialing merely because the physician involved is an independent contractor. If you or a loved one suffered harm due to negligent treatment by a hospital-affiliated physician, you should contact a Baltimore medical malpractice attorney to discuss your rights and legal options.
Case Background
It is alleged that the plaintiff, a minor, suffered severe neurological injuries shortly after birth at the defendant hospital. The infant’s mother was admitted for delivery, and labor was managed by an obstetrician who held privileges at the hospital but was not an employee. According to court filings, complications arose during labor, including fetal distress, but the attending physician allegedly failed to perform a timely cesarean section. The child was delivered in a compromised condition, suffering hypoxic-ischemic encephalopathy and permanent disability.
It is reported that the plaintiff’s parents brought suit against both the hospital and the obstetrician, asserting claims for medical negligence and corporate negligence based on negligent credentialing. They alleged that the hospital knew or should have known that the physician had a history of prior malpractice claims, clinical performance issues, and disciplinary concerns. The plaintiffs contended that by granting and maintaining staff privileges without adequate review, the hospital failed to exercise reasonable care in ensuring patient safety.
It is alleged that the hospital sought summary judgment, arguing that Maryland law does not recognize an independent cause of action for negligent credentialing separate from traditional respondeat superior liability. The hospital further asserted that because the physician was an independent contractor, not an employee, the facility could not be held vicariously liable for the alleged malpractice. The circuit court agreed and dismissed the credentialing claim. The Appellate Court of Maryland affirmed, reasoning that negligent credentialing was not an established tort under Maryland law.
Hospital Liability for Negligent Credentialing
The Supreme Court of Maryland granted certiorari to determine whether a hospital may be held directly liable for negligent credentialing of a nonemployee physician. The Court began by examining Maryland’s recognition of hospital corporate negligence, noting that hospitals owe independent duties of care to patients apart from the acts of their physicians. These duties include hiring competent staff, maintaining safe facilities, and enforcing policies to ensure quality medical care.
Drawing on precedent from other jurisdictions, the Court observed that the doctrine of negligent credentialing flows logically from a hospital’s corporate duty to oversee and evaluate the competence of its medical staff. The Court emphasized that the credentialing process serves as a safeguard against substandard medical care, ensuring that only qualified practitioners receive hospital privileges.
The Court rejected the hospital’s argument that recognizing negligent credentialing would improperly expand liability or conflict with the state’s Health Care Malpractice Claims Act. It explained that negligent credentialing is a direct negligence claim against the hospital, not a derivative claim based on the physician’s employment status. Accordingly, a hospital may be liable if its credentialing or reappointment decisions fall below the applicable standard of care and proximately cause patient harm.
The Supreme Court reversed the Appellate Court’s judgment and held that Maryland law does recognize negligent credentialing as an actionable tort. The Court reasoned that hospitals function as gatekeepers of patient safety and cannot delegate away their duty to verify that physicians permitted to treat patients within their facilities are competent and qualified. The Court emphasized that this duty extends even when the physician is an independent contractor.
In remanding the case, the Court directed the trial court to allow discovery and trial proceedings on whether the hospital breached its duty by failing to investigate the obstetrician’s prior performance and whether such failure caused or contributed to the plaintiff’s injuries.
Talk to a Skilled Baltimore Medical Malpractice Attorney
If you or a family member sustained preventable injuries due to medical errors or negligent oversight in a Maryland hospital, the experienced Baltimore medical malpractice attorneys at Arfaa Law Group can help. Contact us today at (410) 889-1850 or complete our online contact form to schedule a consultation. We proudly represent clients throughout Baltimore, Towson, and across the State of Maryland.