Many physicians are unsure of whether or not they should use credit reports during the hiring process for their medical practice. The answer, like so many other things, depends on many factors.
Using a credit report while hiring members of a medical practice staff can clear up many difficult questions, but it can also present a problem for physicians who don’t know how to read the report and which parts are relevant – and whether it’s legal to obtain the report in the first place.
Establish legality
The first step, of course, is to discern whether the use of the credit report during the hiring process is legal. According to Danielle Urban, an employment lawyer and Denver-based partner with Fisher & Phillips, the situation is cloudy.
“You have to make sure the information is correct, and you need to have a really good reason as to why this information means that you are not putting that person in the position,” noted Urban, in an interview with American Medical News.
In other words, it is legal for doctors to obtain and look at a potential employee’s credit report during the hiring process, but they will need to supply excellent and legally sound reasoning why any of the information within the report is, first of all, relevant to the position, and second of all, a reason to hire or not hire someone for the position.
Is it necessary?
Once a physician has established that the use of the credit report is legal, they need to determine if it’s necessary. According to Amednews, it is definitely not required, but it can help small practices to avoid the costly hassle of taking on bad employees. According to a survey on the website MiracleWorkers.com in December 2011, 77 percent of responding medical practices noted that they had been negatively affected by a bad hire. Using credit reports can help to determine whether a person is a good fit for the position, as well as whether that person is financially trustworthy
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