This article analyzes a recent Illinois Appellate Court decision which upheld an $8 million jury verdict against a hospital which had granted surgical privileges to a podiatrist, even though he did not meet established qualifications and later negligently performed surgery on a patient who subsequently lost her foot due to a post-op infection which he caused. The article discusses the doctrine of corporate negligence and how hospitals can be held liable if their credentialing and privileging policies are not followed or are not in compliance with licensing and accreditation standards, as well as how hospitals can defend against these claims. It further examines the Illinois peer review statute and how hospitals can best assert the confidentiality provisions as a means of preventing the disclosure of sensitive information that could be used against hospitals in these actions.