Licensing boards play a crucial role in ensuring the competence and ethical conduct of professionals in various fields, from medicine and law to engineering and cosmetology. These boards are responsible for issuing and renewing licenses, as well as investigating complaints against license holders. In the case of healthcare and life sciences, particularly, licensing boards are given plenary power to investigate allegations of wrongdoing and discipline their licensees as they deem fit.
While board investigations serve an essential purpose in maintaining public safety and trust in our healthcare system, there are potential dangers all licensees need to be keenly aware of. Our firm has already given two (2) separate three (3) part webinar series demystifying Medical Board investigations and Pharmacy Board investigations, which generated much interest in the topic and surprise among the attendees as to the scope of power these boards wield, as well as the many pitfalls licensees carelessly fall into.
In this article, we will delve into the various dangers of licensing board investigations, examining their impact on professionals’ careers, mental health, and the broader system of professional regulation.
Impact on Professional Reputations
One of the most significant dangers of licensing board investigations is the potential harm to a professional’s reputation. Accusations or complaints, even if unsubstantiated or ultimately dismissed, can tarnish a practitioner’s standing in their field and within the community. The mere existence of an investigation can raise doubts and concerns among colleagues, patients, clients, or employers, leading to a loss of trust.
In the case of healthcare practitioners, most licensing board investigations start out as confidential and will remain so if the charges are eventually dismissed. However, if the board files a formal administrative complaint against the provider, then that complaint is reported on the National Practitioner Data Bank (“NPDB”). The NPDB, after collecting information about a practitioners’ malpractice payments, adverse licensure actions, or professional privileges actions, will then disseminate the adverse action to insurance companies, government entities, and hospitals.
Professional reputations, once damaged, can be challenging to repair, and the specter of an investigation may follow a practitioner throughout their career. In some cases, the damage to one’s reputation can be irreversible, with long-lasting repercussions for professional relationships and opportunities.
Emotional and Psychological Toll
Licensing board investigations can take a severe emotional and psychological toll on the individuals being investigated. The stress, anxiety, and uncertainty associated with being under scrutiny can be overwhelming. Professionals may experience feelings of humiliation, shame, and fear as they face potential disciplinary actions.
Moreover, the duration of investigations can vary greatly, ranging from several weeks to several years. This prolonged uncertainty can be taxing on a provider and may lead to anxiety and depression. The emotional toll can extend to family members and loved ones who are also affected by the distress and uncertainty of a professional’s potential inability to continue to work in the future with an unrestricted license.
The emotional and psychological toll has led many providers to “give up” and surrender their license or agree to restrictions when they would otherwise have had viable defenses available to them.
Financial Consequences
The financial impact of licensing board investigations can be devastating. Legal representation is necessary to navigate the complexities of the investigation process and keep board investigators honest. In addition to legal fees, which sometimes are covered by a provider’s medical malpractice policy, professionals may face costs associated with taking time off work, loss of income due to suspension, and the potential for fines or penalties if disciplinary actions are imposed.
Moreover, even after the investigation is resolved, the financial repercussions may continue. Damaged professional reputations can result in reduced earning potential, as patients or employers may be hesitant to engage with someone who has been disciplined by a licensing board.
Inefficiency and Delays
Licensing boards are, generally speaking, a squeaky wheel in need of copious amounts of grease. Board investigations are plagued with delays, inefficiencies and, at times, incompetence that can cause great setbacks in their adjudication. These delays can be detrimental to the individuals under investigation, particularly if they have agreed to a “temporary” limitation on their ability to practice, such as surrendering a DEA registration. Furthermore, practitioners have little control over the pace of the investigation, which, as mentioned above, can vary significantly.
Inefficiencies within the system can result from a variety of factors, including the backlog of cases, staffing issues, and the complexity of the investigations themselves. The delays leave professionals in limbo and prolong the emotional and financial toll.
Navigating a Complex System
The administrative and legal processes involved in licensing board investigations can be convoluted and challenging to navigate. Professionals who find themselves under investigation should avoid the temptation to handling things “in-house” as the complex legal procedures, which can be daunting and confusing, should be left to healthcare counsel. This complexity can lead to mistakes and oversights, potentially harming their defense.
In some cases, providers have been pressured to agree to licensure limitations, or even a suspension of their license, even if they believe they are innocent, to expedite the process or reduce potential penalties. This further highlights the danger of licensing board investigations, as the pressure to admit guilt can have long-lasting consequences and investigators have no duty to tell licensees the truth.
Potential for Abuse of Power
While licensing boards are meant to regulate and protect the interests of the public, there is a potential danger that the board, or its investigators, may abuse their power. State and Federal Investigators will often overstate the scope of their power and make demands they are not entitled to make, which unsuspecting professionals will accept without question. Similarly, at times the Deputy Attorney Generals (“DAG”) handling a case will make “executive decisions” they have no authority to make.
Without competent healthcare counsel who is intimately aware of the respective board’s regulations and statutory powers, a provider may unwittingly divulge too much during an investigation, which will be used against them.
How to Respond
It can be overwhelming to have an investigator from the board arrive unannounced with a subpoena or receive a letter from a licensing board enclosing a patient complaint or demanding a provider’s appearance before a board committee. Although there is a strong tendency to want to cooperate immediately and “get it over with”, acting out of a desire to end things quickly many times has the opposite effect.
Providers must balance their duty to cooperate with the board with their individual rights and best interests. Similarly, without the aid of healthcare counsel, it is difficult to understand what rights providers have. For instance, although an investigator has the right to inspect the premises of a practice unannounced, that does not give them the right to interrogate providers and staff without representation.
The most important thing a licensee of a board must do during an investigation is to remain calm and understand that an investigation is a long process. Cooperation is mandatory, but that does not give investigators free reign over a provider, practice, or pharmacy. Ensure that if served with a subpoena or a written complaint that you respond with healthcare counsel to all the requests or allegations fully, and in a professional manner, to not leave any room for additional investigation.
Conclusion
Licensing board investigations serve a vital role in maintaining the integrity and safety of various professions, but they are not without their dangers. The impact on professional reputations, emotional and psychological toll, financial consequences, inefficiencies, and the stress of navigating a complex system are just a few of the dangers professionals may face when subject to an investigation.
To navigate these rough waters, providers should always retain competent healthcare counsel to protect their license. It is essential for professionals in any field to avoid the temptation of handling things in-house and seeking to speak “professional to professional” with their Board. Investigations are not open exchanges of ideas between professionals, but rather a formal process to determine if a licensee of that board should be disciplined, and if so, how severely.
How Frier Levitt Can Help
If you’re currently facing a licensing board investigation, it is essential to take action immediately to protect your professional license. Frier Levitt has a team of experienced healthcare attorneys who specialize in guiding individuals through these complex and often daunting processes. Don’t navigate these challenges alone – reach out to Frier Levitt today and let us provide the legal support you need to safeguard your career.
