Over the last few years, a number of trends have contributed to the quality of medical workforce personnel throughout the healthcare industry – particularly the emerging issue of placing qualified employees into the appropriate positions.

A single negligent-hiring lawsuit can cost a healthcare organization millions of dollars. But even if a bad hire doesn't result in a lawsuit, bad publicity can destroy a company. Healthcare organizations must be proactive to avoid such litigation.

Employers in the healthcare industry need to obtain a thorough understanding of a prospective employee's history, particularly if that person will have access to patients, medications and confidential information. In fact, liability for negligent hiring and retention can occur if the healthcare organization fails to conduct a comprehensive background check on employees. Simply stated, the potential for lawsuits and corporate liability for negligent acts reinforces the importance of due diligence in hiring practices.

Criminal background checks can reveal whether a prospective employee has engaged in a violent crime or has been convicted of abuse or theft. Healthcare organizations can also use the background-check report to determine whether an applicant has been honest on the job application. Supplying false information on an employment application is often a red flag for many employers, potentially indicating a hiring risk, and can be a separate reason to terminate an individual.

Knowing as much as possible about your employees, before they know your organization, is also crucial. The individuals you hire must interact successfully with both coworkers and patients. And many positions are often unsupervised, leaving the door open for potential liabilities. A thorough background check can identify applicants with criminal records — information that can help you decide whether those people should be allowed to work for your healthcare organization. The key to minimizing your exposure to such liabilities is to know your applicant's history prior to extending an offer of employment.

Unfortunately, poor due diligence and negligent hiring practices in the healthcare sector harms not only an organization, but its patients as well. Indeed, poor hiring can often be cited as a factor in the rise of lawsuits and malpractice claims, leading to multi-million dollar settlements.

A background check is one of the best risk-management defenses against workplace violence, abuse and theft, especially when it comes to hiring reliable and trustworthy workers. Not only can an employee manage to steal drugs or abuse a patient, but an employee with access critical information could send a healthcare organization into financial ruin, costing jobs and millions of dollars. Investigating a job applicant's background not only helps protect company assets, but it also keeps the workplace and customers safe.

According to the Society of Human Resource Management (SHRM), 53 percent of all job applications contain false information. Used effectively, a sustained background-check program can assist healthcare organizations to limit violence, deter abuse, protect confidential information, reduce liability, and even prevent litigation regarding hiring practices.

Although preemployment screening and background checks are important, periodic screening is also vital to maintaining a dependable healthcare workforce free of unlawful behavior. For example, an employee may pass an initial criminal background check but later commit a criminal offense that would justify termination. Since such actions could be imputed to companies and organizations, it is imperative that organizations periodically screen employees to identify individuals who have committed crimes.

In addition, to reduce the likelihood of an employment discrimination action, healthcare organizations should create a preemployment screening policy rather than conduct background checks on a case-by-case basis.

The Checks and Balances of Background Checks

It's important to investigate a candidate or employee thoroughly and evaluate the information you receive from a background-check provider. Make sure the information you use to select or deny an individual candidate is based on facts and their relevancy to the position. In addition, a thorough background check should include a combination of national database and single-county searches.

When conducting background checks, companies must adhere to the Fair Credit Reporting Act (FCRA). The employer must obtain written authorization from the applicant that allows the company to perform a background check, obtain past education or employment references, obtain professional license reports, and so on. Additionally, if a background-check report produces negative or adverse information, the applicant, under FCRA guidelines, has a right to dispute the report.

Tips to Lessen Liability Concerns before Hiring

Healthcare employers have a duty not to hire people whose criminal history indicates that they are unsuitable for the job. Investigate a candidate or employee thoroughly, and evaluate the information you receive from a background-check provider.

Top Tips to Reduce Liability

• Develop internal policies and mandate an organization-wide commitment to mitigate risk and promote a safe work environment.
• Develop a preemployment screening policy using background-check products and services to ensure safe hiring practices.
• Follow all FCRA rules and regulations.
• Perform due diligence in selecting the right screening supplier for your healthcare organization.
• Use multiple screening products and develop position-specific standardized searches.
• Establish criteria to evaluate information. For example, what will constitute disqualifying information?
• Incorporate applicant background information and release forms in an application or prehire package.
• Eliminate subjective opinions to ensure consistency when interpreting results.
• Conduct a periodic program review to ensure that all applicable policies are being adhered to.
• Conduct periodic screening of employees to maintain a dependable healthcare workforce free of unlawful behavior.

Background screening reduces employee theft, abuse, and workplace violence. It increases productivity and employee tenure and protects your healthcare organization from negligent hiring.

An employer's obligation to maintain a safe working environment arises from legal principles. By implementing a consistent screening policy, healthcare organizations will avoid costly hiring and recruiting mistakes, mitigate exposure to risk and litigation, and reassure employees that the individuals working with them have been properly investigated.