What can Happen if I Don't Disclose a Disciplinary Action in an Employment Application for a Doctor?

Full question:

000000000 I have a question regarding not fully disclosing information prior to starting a new position as a physician. I am new graduate and about to start work in a university hospital. The problem is I have had disciplinary action during my residency. My program has informed me via a letter that they will not disclose this information to any outside agency. But, that information is still in my permanent training record. So, before I apply for my state license and start my new job, I need to have an idea of how egregious it would be if I say that I have had no prior issues. There are several scary scenarios which I have listed, please advice:(1) What do state licensing boards generally do in such cases...suspend, revoke...or fine...??(2) In case of a lawsuit, would my insurance coverage be dropped...and I become solely responsible for the liability etc?(3) If I disclosed it a later time voluntarily after I start work, would that cause less damage.(4) Prior to starting work, what is the process a hospital/insurance company do to provide privileges. Some one told me it take four months for insurance verification....does that mean they will go through my residency records....or simply expect a clearance note from my program director? (5) What is the percentage of times do plaintiff attorneys subpoena residency records at a trial?I know that it is better, safer and smarter to disclose first. But I really need this position for multitude of reasons and cannot afford to loose this chance. Please help.

• Category: Employment
• Subcategory: Employment Agreement or Contract
• Date: 04/07/2025
• State: New York

Answer:

I am unable to speculate on the likelihood of discovery of a false or misleading statement. A false statement on an application may lead to adverse consequences, ranging from denial of insurance coverage to revoking a license. If relevant, residency records may be obtained through the discovery process at trial. Each case and the nature of relevant evidence is judged by the circumstances and facts in each situation.

To be licensed as a physician in New York State you must be of good moral character. Obtaining a doctor's license fraudulently is considered professional misconduct in NY. Fraud involves a knowingly made misrespresentation that is intended to cause another to rely and act on it to their harm. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds. In order to prove a fraud claim, it must be shown that the defendant had an intent to deceive. If deception was used to induce another to rely on a promise and such reliance caused harm, it is possible to recover damages. Fraud may be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading.

Please see the information at the following links:

http://www.health.state.ny.us/regulations/education_law/article/131-a/docs/131a.pdf
http://www.health.state.ny.us/regulations/public_health_law/section/230/docs/230.pdf
http://www.health.state.ny.us/professionals/doctors/conduct/fraud.htm
http://content.nejm.org/cgi/content/full/353/25/2673
http://www.nyhealth.gov/press/releases/1999/leads.htm
http://www.op.nysed.gov/prof/med/article131.htm#6524
http://www.op.nysed.gov/title8/part29.htm