Wrongful Termination Issues Unique to Medical and Dental Facilities

Wrongful termination claims in medical and dental facilities often involve familiar employment law issues such as pregnancy discrimination, disability accommodations, retaliation, or harassment. However, beyond these traditional claims, healthcare settings present unique termination scenarios that do not arise in most other industries. Because patient care, billing regulations, and professional licensing are involved, employers in these facilities frequently justify terminations in ways that require closer legal scrutiny.

Below are three common wrongful termination issues that are particularly prevalent in medical and dental practices.

1. Allegations That the Employee Was a “Patient Safety Risk”

One of the most common defenses medical or dental facilities raise is that an employee—such as a dental assistant, hygienist, or medical technician, was terminated because they posed a safety risk to patients.

A classic example in dental practices involves charting errors. Consider a situation where a dental assistant cleans a patient’s teeth and notices a legitimate issue with one molar that may require a root canal. However, the assistant mistakenly places this information in the wrong patient’s chart. The dentist later reviews the incorrect chart and performs a root canal on a tooth that did not require it.

While dentists are expected to conduct their own examinations and not rely solely on assistants’ notes, busy practices do not always follow this ideal standard. When a mistake occurs, the practice may terminate the assistant and claim the termination was justified due to patient safety concerns.

When a practice makes this allegation, one immediate and critical question must be asked: Did the practice disclose the error to the patient? Healthcare providers generally have an ethical and often legal obligation to inform patients of material mistakes in their care. In many cases, practices do not disclose the error, even when using it as justification to terminate the employee. This inconsistency can seriously undermine the employer’s defense and raise questions about whether the termination was truly about safety or simply a convenient excuse.

2. Billing Practices and Insurance Deadlines

Medical and dental facilities operate under strict billing rules, including deadlines for submitting insurance, Medicare, or Medicaid claims—often within 90 days, though the timeframe can vary.

In large practices, missed deadlines are common. Problems arise when billing department employees are instructed to bill patients directly for services that should have been billed to insurance but were missed due to the practice’s own errors. Employees may be placed in an impossible position: following improper instructions or risk discipline.

When employees comply and later raise concern when the improper billing is discovered—they may be terminated and blamed for the violation. These terminations can implicate wrongful termination, retaliation, and even whistleblower protection, especially where Medicare or Medicaid billing rules are involved. Employers cannot lawfully terminate employees simply to shift responsibility for systemic billing failures.

3. Retaliation Related to Licensing, Scope of Practice, or Record Alteration

Another issue unique to medical and dental facilities involves professional licensing and scope of practice concerns. Employees may be asked to perform tasks outside their legal scope, falsify or alter medical records, or backdate entries to satisfy audits or insurance requirements.

When employees refuse to engage in conduct that could jeopardize their professional license or report such practices internally they may face termination. Employers often characterize these terminations as performance based, but the underlying issue is retaliation for refusing to violate healthcare laws or ethical standards.

Courts and regulators take these claims seriously because they directly impact patient safety and public trust in healthcare systems.

Conclusion

Wrongful termination claims in medical and dental facilities require a careful and informed analysis of industry specific practices. Allegations involving patient safety risks, billing irregularities, and licensing or scope of practice issues are frequently used to justify terminations, but they are not immune from legal challenges. When employers rely on these explanations to shift blame, silence employees, or avoid regulatory scrutiny, they may be violating state and federal employment and whistleblower laws.

Our office has dealt with these issues for many years and has represented many clients working in medical and dental facilities who faced these exact situations. We understand the realities of healthcare workplaces and how employers attempt to use safety, compliance, or billing concerns as a pretext for unlawful termination.

If you believe you are a victim of wrongful termination or retaliation in a medical or dental setting, we encourage you to contact our office. We will listen to your story, evaluate your rights, and help you determine the best course of action. You do not have to navigate this alone, we are here to help.