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November 8, 2024

Medical Liability Monitor, "Physicians With Multiple State Licenses Face Complex Disciplinary Risks"

This article was originally published in Medical Liability Monitor on November 7, 2024.

Being disciplined by a state medical board is one of the most daunting experiences a physician can face, with far-reaching consequences such as the loss of insurance plan participation, credentialing issues and even the revocation of board certification. The complexity of such disciplinary actions is heightened when physicians hold licenses in multiple states. Even if a physician's license in a particular state is inactive and they haven't practiced there for years, that state may still impose disciplinary actions based on findings from another jurisdiction. Since professional discipline is governed individually by each state, physicians with licenses in multiple states must remain aware of the potential issues and know how best to defend both themselves and their licenses.

The New York State Office of Professional Medical Conduct, for example, considers any discipline or criminal conviction in another state as grounds for its own disciplinary action. Moving out of state does not necessarily mean escaping New York’s jurisdiction. If a physician holds a New York license — even if inactive — a disciplinary action in another state could result in the revocation or suspension of their New York medical license, regardless of where they currently practice.

Under New York Education Law §6539(9)(d), if a physician faces disciplinary action, license revocation or suspension in another state for conduct that would qualify as professional misconduct in New York, they risk losing or having their New York license suspended, even if it’s inactive.

It is critical for physicians to take prompt steps to avoid disciplinary action in New York, even if they no longer live or practice there. While New York typically initiates charges only when a violation is reported or discovered, physicians should remain vigilant about monitoring their status to prevent potential repercussions. Even if the disciplinary action in another state is relatively minor — such as a requirement to attend continuing medical education classes or pay fines — physicians could face more severe penalties in New York, especially if they fail to respond promptly.

A recent example, published on the New York Department of Health website, involved a doctor disciplined by the New Mexico Medical Board. The physician was required to complete a controlled substances course, submit a summary to the board and undergo a psychological evaluation but was allowed to retain his license. However, when the New York board attempted to notify him of the disciplinary action, they were unable to reach him. As a result, he missed the opportunity to defend himself, and the New York board ultimately revoked his license.

This case underscores the importance of staying proactive and responsive. While physicians may be able to negotiate less severe disciplinary actions in other states — such as by completing educational courses or evaluations — failure to address the matter in New York can lead to severe consequences. A license revocation in New York can negatively impact medical liability insurance costs and will be publicly listed in the National Practitioner Data Bank, damaging a physician’s reputation and professional opportunities. Therefore, it is essential for physicians to remain reachable and responsive to avoid such outcomes.

This example is not an isolated incident. In fact, four out of the last 10 published decisions on the New York Department of Health website resulted from disciplinary actions originating outside of New York.

Physicians licensed in New York should also be aware that while they have the right to a hearing in cases of disciplinary action, the scope of that hearing is limited. Physicians cannot relitigate the underlying issues that led to the initial disciplinary action in the originating state. Instead, the hearing in New York typically focuses solely on determining the appropriate penalty. This limitation can make the defense process more challenging, as the original misconduct will not be reconsidered even if the penalties in New York could be severe.

Furthermore, New York often imposes onerous conditions if an agreement from a consent order is reached before any hearing. These conditions may include requiring the physician to reactivate their license, thereby preventing them from placing their license in inactive status. This would also require biennial registration fees from doctors who no longer practice in the state.

In summary, if you hold medical licenses in multiple states, it is essential to understand how each state you have been licensed in may take action against you for discipline imposed by the state where you actively practice. Ensure your contact information is updated in all states where you hold — or have held — a license, and always be responsive to notices from other states. Lastly, engage experienced legal counsel in the disciplining state to advise and defend you should the need arise.

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