When you go to the hospital, you probably do not stop to ask whether the doctor treating you is a hospital employee or an independent contractor. You trust that the hospital will stand behind the care you receive. However, some hospitals try to avoid liability for the actions or negligence of physicians by drawing that distinction when something goes wrong.

For injured patients, distinguishing between employees and independent contractors is essential. In certain situations, a hospital can be held liable for the actions of an independent contractor physician. Understanding hospital liability can make the difference between limited recourse and a full and fair recovery.

What Is Hospital Liability?

Hospitals are huge operations that employ thousands of people, including nurses, laboratory technicians, custodians, receptionists, and more. When a hospital employee is negligent, the hospital can be held liable for the actions of its employees. This is known as “vicarious liability” and means the hospital is legally responsible for an employee’s actions even though the hospital itself did nothing wrong.

Vicarious liability is distinct from hospital liability, where the hospital itself can be held liable for something it did or failed to do. Also known as corporate negligence, a hospital can be held liable for its own independent actions or failures to act, often through systemic policy failures or poor administrative decisions. Examples of hospital liability include:

• Negligent hiring, credentialing, or retention
• Inadequate staff supervision
• Failure to adopt or enforce appropriate policies and procedures
• Failure to maintain safe facilities or equipment

The focus here is on the hospital’s conduct and decisions that caused patient harm.

Are Hospitals Liable for the Actions or Negligence of Their Employees?

Hospitals are generally responsible for the actions of their employees under the legal doctrine of respondeat superior, but there are some notable exceptions. Many physicians are not hospital employees. Instead, they are independent contractors. In this situation, the physician is personally liable for their own negligence. But because the doctor is not a hospital employee, the hospital is not automatically liable for the physician’s actions or failure to act.

Holding Hospitals Liable for a Doctor’s Mistake

Understanding the difference between independent contractors and hospital employees is critical when determining hospital liability. Hospitals are typically not liable for the actions of independent contractors, but they are liable for the actions of employees. However, when independent contractors work closely with the hospital, it can appear to patients that they are hospital staff. In these situations, the doctrine of ostensible agency applies and can be used to hold the hospital liable for the actions of an independent physician when certain conditions are met.

“Apparent” or “Ostensible” Agency

Hospitals can be held legally responsible for physician actions, even if the doctor is not a direct hospital employee, under the legal doctrine of "apparent agency" or "ostensible agency." Even though the physician is an independent contractor, the hospital may still be liable if it held the physician out as its agent or created the impression that the doctor was acting on behalf of the hospital and the patient reasonably believed this to be the case. When a patient reasonably believes the doctor was acting on behalf of the hospital and the hospital has done nothing to clarify the physician’s status as an independent contractor, the hospital can be held liable under the theory of ostensible agency.

How to Prove Hospital Liability

Proving hospital liability requires a comprehensive analysis of hospital policies, medical records, correspondence, and other documents, as well as testimony from experts and other witnesses. This evidence can establish a timeline of events, show where the hospital deviated from standard procedures, and be used to hold the hospital liable for the conduct of an independent physician.

Holding the hospital liable can change the value and viability of a medical malpractice claim. Hospitals typically carry large insurance policies and have far greater financial resources than an individual physician. By establishing hospital liability, an injured patient opens new doors to help recover full compensation for medical expenses, lost income, and long-term care needs.

Pursuing a claim of hospital negligence can help prove claims of negligent credentialing, inadequate staffing, or unsafe policies. These theories can strengthen a medical malpractice case and provide alternate paths to establishing liability.

Proving hospital liability provides additional leverage in settlement negotiations. Hospitals may have an institutional incentive to resolve a meritorious claim to avoid reputational damage, particularly where systemic deficiencies may be exposed.

How the Medical Malpractice Attorneys at Robenalt Law Can Help

The medical malpractice attorneys at Robenalt Law have decades of combined experience handling medical malpractice and hospital liability cases throughout Ohio and nationwide. We understand how difficult these cases can be for injured people and their families. We will answer your questions, explain and help you evaluate your options, and fight for the compensation you deserve. We handle medical malpractice cases on a contingency basis, which means you won’t owe us a fee unless we recover money for you.

Contact Robenalt Law Today

Robenalt Law has offices in Cleveland and Columbus, and handles medical malpractice claims throughout Ohio and nationwide. Call our Cleveland office at (216) 223-7535 or our Columbus office at (614) 695-3800 or contact us online to schedule a free, confidential, no-obligation appointment to discuss your situation and how we can help.