Employers in different industries face very different risks when hiring. A hospital, a behavioral health facility, a nursing home, and a bank may all use background checks, but what they are looking for—and what regulators require—varies significantly.
One of the most common mistakes organizations make is assuming that one type of background screening fits every industry. In reality, healthcare providers must comply with state laws, federal exclusions, and accreditation standards that make their requirements far more complex than those in finance or retail.
This guide breaks down how background checks differ in healthcare (including hospitals, behavioral health, nursing homes, and assisted living facilities) compared to financial services, and why using the wrong approach can create major compliance risks.
Healthcare background checks are driven by one core fact: employees interact directly with vulnerable populations. Patients may be children, seniors in assisted living, residents of nursing homes, or individuals in crisis receiving behavioral health services. The stakes are higher than in almost any other industry.
Unlike retail or finance, healthcare hiring is regulated not only by federal law but also by state-specific requirements, which can vary dramatically. For example:
Some states mandate Level 2 fingerprint-based checks for all healthcare workers (e.g., Florida).
Other states require state Bureau of Criminal Investigation (BCI) checks or FBI checks, depending on the role.
Nursing homes and assisted living facilities may be required to run abuse and neglect registry checks in addition to criminal searches.
Hospitals must verify licenses for clinicians—surgical and non-surgical staff are generally held to the same criminal screening standards, but specialized credential verification is essential for surgeons and surgical techs.
Behavioral health providers often face additional mandates tied to Medicaid participation and exclusion screening.
Core elements of healthcare background checks include:
Fingerprint-based state and FBI criminal history checks.
OIG and SAM exclusion checks to ensure staff are not barred from federally funded programs.
State abuse and neglect registry searches, especially for nursing homes and assisted living facilities.
Professional license and board verification for physicians, nurses, and allied staff.
Occupational health screenings (drug testing, TB tests, immunizations) often tied to hospital policy or state regulations.
Continuous monitoring and re-checks to maintain compliance after hire.
Financial institutions focus on protecting money, assets, and consumer trust. While these checks are important, they do not include the same patient safety and regulatory layers found in healthcare.
Typical elements include:
Credit history reports to assess financial responsibility.
Criminal record checks with emphasis on fraud, theft, and embezzlement.
Employment and education verification for trust-sensitive roles.
Regulatory checks tied to agencies such as FINRA and the SEC.
Financial employers rarely need fingerprint-based checks, exclusion list screening, or occupational health testing. Compliance is tied to financial integrity, not patient safety.
The main difference between healthcare and finance comes down to scope and risk. Financial background checks focus on preventing fraud. Healthcare background checks focus on protecting patients’ lives and ensuring providers remain eligible for government reimbursement.
In healthcare, compliance is multi-layered:
Federal rules: FCRA, OIG/SAM exclusions, CMS requirements.
State rules: Vary by jurisdiction, requiring BCI checks, FBI checks, or registry screenings.
Accreditation: Joint Commission, CARF, and NCQA all expect documented, healthcare-specific background checks.
Because these requirements vary state by state, healthcare employers must partner with a CRA that understands local regulations and national compliance standards.
Auradon Solutions is the background check company for healthcare. We provide:
Nationwide coverage to meet state-specific BCI, FBI, and registry requirements.
OIG and SAM exclusion screening built into every report.
Professional license and credential verification for clinical staff.
Abuse and neglect registry checks for nursing homes and assisted living facilities.
Integrated occupational health services through partners like Quest, Labcorp, and Concentra.
Bilingual English/Spanish support for diverse healthcare workforces.
Unlike generalist CRAs or finance-focused vendors, Auradon Solutions is built around the unique compliance landscape of healthcare.
Healthcare background checks cannot be treated like financial or retail screenings. Hospitals, behavioral health facilities, nursing homes, and assisted living providers face state-by-state requirements, federal exclusions, and accreditation standards that make their needs far more complex. Financial services employers focus on fraud prevention, but healthcare providers must protect patient safety and reimbursement eligibility.
Ready to protect your workforce and your bottom line? Get started with Auradon Solutions now to customize your background screening process.
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