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Who has the authority to revoke a physician's license?

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The AMA. If he/she is found guilty of medical malpractice (in IN, anyway) 3 times, they can no longer practice medicine in that state. They have to be board certified in whatever state they practice in, so they'd have to be recertified if they moved to another state. 

Typically with any type of professional licensing, it will be the licensing board that makes the decision. This law article describes the process. Doctors may be reported by patients or co-workers such as other doctors or nurses for infractions.

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