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Candor After Kadlec: Why, Despite the Fifth Circuit's Decision, Hospitals Should Anticipate an Expanded Obligation to Disclose Risky Physician Behavior


This Article argues that, the Fifth Circuit's decision notwithstanding, hospitals should anticipate being held to a duty of greater candor in responding to physician credentialing inquiries than would be found in the usual business context. Recognition of this obligation follows from converging trends in health law theory, institutional liability, and hospital practice. Furthermore, although Kadlec was the first case of its type, given the increased stake hospitals have in sound credentialing decisions, it is unlikely to be the last. A limited response such as Lakeview Medical's might well be the basis for liability in a case not grounded in Louisiana law, particularly if the injured patient were also a party, if the hospital could be shown to have violated a mandatory reporting duty, and if the court focused on ways in which the credentialing of physicians differs from standard employment arrangements.