In checking records under the previous name, the investigator found a myriad of suits in which the doctor had been sued for loan default, unpaid state and federal tax liens, a recent bankruptcy, and other legal matters. The doctor's visit was cut short and the recruiter resumed the search for the position. Credit checks are also common when a physician or medical group is taking on a new partner, or when a hospital is offering repayment of student loans or is willing to co-sign on a home loan as part of an incentive plan. A history of late payments or collection accounts may be cause for concern. It has been my experience that refusal to allow a potential employer to view credit files should be viewed as a red flag and may hint at potential problem areas.
Credit reports provide more than a listing of an individual's loans and credit card companies.
The report includes information such as prior addresses, previous employment, state and federal tax liens, bankruptcies, and civil case information. Jarecki recalls many instances where information on the credit bureau file has led investigators to other areas that revealed far more serious problems about the practitioner, but cautions that you are obligated to provide a copy of the credit report to candidates if information from the report is used in making a decision not to hire them. Investigators should also be sure to follow guidelines dictated by the Fair Credit Reporting Act, protecting both the employer and the prospective employee. Other areas that can be investigated include licensure verification, board certification, a review of the Sanctioned and Excluded Providers list, a query to the National Practitioner's Data Bank, and many others. Background checks and investigations cannot provide an absolute guarantee that all of a candidate's problems will be revealed.