What employers can learn from Iowa negligent credentialing case

Negligent credentialing lawsuits arise when a patient who has been injured in a hospital sues the medical provider for malpractice and the hospital for credentialing the physician. Negligent credentialing can go by many names, including corporate negligence, negligent selection, and negligent peer review. In the employment law world, the closest equivalent would be negligent hiring and negligent supervision claims. With that in mind, let’s look at a recent negligent credentialing case decided by the Iowa Supreme Court.

Facts

Roxanne Rieder underwent spinal surgery performed by Dr. David Segal. There were complications, and a second surgery was performed. Although she was discharged from the hospital, she continued to have substantial pain.

On the day Rieder left the hospital, the Iowa Board of Medicine (IBM) formally charged Segal for issues regarding medical competency and involving other patients he had previously treated.

In the ensuing lawsuit, Rieder and her husband Tony argued not only had Segal committed malpractice but the hospital was also liable under the tort (or wrongful personal injury claim) of negligent credentialing because “it failed to exercise reasonable care in investigating and selecting medical staff to permit only competent and qualified physicians the privilege of using its facilities.”

Ultimately, Segal resolved the IBM charges and discontinued his surgical practice. Multiple courts have issued rulings in the Rieders’ case including requests for summary judgment (dismissal without a trial), which were subject to appeal.