ABA Journal.com reports that "in 1996, a Delaware hospital conducted an internal investigation of a pediatrician accused of inappropriate conduct with young patients and concluded he had done nothing wrong. Hence, administrators reportedly never informed the state’s medical disciplinary board or law enforcement authorities of the allegations."
Now, the hospital is fearing bankruptcy because the doctor has been charged with rape and sexual abuse of over 100 children, 18 of whom have filed lawsuits. The doctor has been indicted on over 400 counts of child sex abuse. The name of the doctor is Earl Bradley, who is alleged to have videotaped some of his misconduct.
The hospital is Beebe Medical Center, a 210-bed facility in Lewes, Delaware. State law requires hospitals to report suspected professional misconduct to the state medical board. The hospital apparently did not do so.
I obviously don’t know what actually happened here, but if the hospital had information about alleged sexual abuse and did not report it as required by law it deserves to be sued. The reporting requirements exist for a reason, and the failure to follow them should give rise to a negligence per se claim.