New National Practitioner Data Bank Guidance Reinforces the Need to Exercise Caution Before Resigning From a Hospital

By: Jesse Adam Markos, Esq.
Wachler & Associates, P.C
11/4/24

The National Practitioner Data Bank (“Data Bank”) published an article in a recent version of their in-house publication, NPDB Insights,that reinforces the importance of exercising caution before resigning from a hospital. For those on staff or employed by a hospital, a resignation may at first glance appear to be the best path forward when their relationship with that hospital has deteriorated. However, that resignation will often create more problems than it resolves if it triggers a report to the Data Bank because the resignation occurred during an ongoing investigation by the Hospital. And since a Data Bank report can have significant professional and economic ramifications, it is important for physicians to understand how to appropriately disengage from a hospital and avoid a Data Bank report when possible.

By way of background, the Data Bank is an alert system that collects and discloses certain adverse information about physicians and other health care providers. An adverse report to the Data Bank can significantly impact a physician’s reputation and career. State licensing authorities, hospitals and other health care entities, and professional societies search the Data Bank when investigating qualifications. A response that contains an adverse report can act as a permanent blackmark and result in a denial of credentialing, loss or limitation of hospital privileges, loss or limitation of licensure, exclusion from participation in health plans, and increases in premiums or exclusion from professional liability insurance.

NPDB Insights includes a recurring feature titled “Is It Reportable” that provides hypothetical reporting scenarios to help illustrate whether a given situation is reportable. Generally, a resignation from a hospital would not trigger a reportable event. However, a resignation while under investigation must be reported. But determining when an investigation began and concluded can be difficult to ascertain and a recent NPDB Insights scenario illustrates this uncertainty. More specifically, a suspended physician resigned after the hospital offered them the option of returning to work if they agreed to restrictions on their privileges. The physician contended that their resignation was not reportable because the investigation was over once the hospital offered to let them return to work. However, NPDB Insights advises that the resignation was reportable because an investigation is considered ongoing until the hospital formally closes the investigation and the offer to return to work pursuant to restrictions had not closed the investigation.

Unfortunately, NPDB Insights does not provide further clarification as to whether or not an offer to return to work that does not include restrictions on privileges would close an investigation. Certainly, a stronger argument could be made that it was if that was the case. Nevertheless, this article illustrates how complex a decision to resign can be and underscores the importance of consulting with an experienced healthcare attorney before making such a decision. For additional information or assistance, contact Wachler & Associates at (248) 544-0888.