It goes without saying that many serious claims for medical malpractice arise from procedures and treatment given to patients in hospitals. A hospital itself is generally liable for any actions of its employees that are undertaken within the scope of their employment. For example, a hospital is responsible for the actions of a doctor or nurse employed by the hospital in the course of providing care to patients in the hospital.

Certain issues arise when a doctor is not an employee of the hospital, but rather has privileges at the hospital. Normally, these doctors bill patients for services directly, rather than through the hospital, though this is not always the case. Often, these doctors are considered independent contractors rather than employees of the hospital, and the hospital may not be liable for negligence of these doctors, though there are a number of exceptions to this rule that require careful analysis on a case by case basis.