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Hospitals Grant "Privileges" to Doctors
Each hospital has its own set of rules, regulations and policies defining how doctors can admit patients, and how they're allowed to treat patients. Usually the rules require doctors to submit a written application for their privileges. The application contains extensive information about the doctor's education, license and experience.
Different categories of privileges exist. These include:
Admitting privileges - allow a doctor to admit a patient to the hospital
Courtesy privileges - allow a doctor to occasionally admit or to visit and treat patients in the hospital
Surgical privileges - to perform surgery in the hospital's operating room or outpatient surgery area
Often the decision of whether to grant privileges to a doctor is a group decision made by a hospital's credentialing committee. The committee thoroughly reviews the doctor's application and conducts an in-person interview, then votes on whether to accept the doctor.

Hospitals Can Impose Residency Requirements
Hospitals can have strict requirements that a doctor must follow before they're considered for privileges. These can include requirements that the doctor reside within a certain distance from the hospital to be sure that the doctor can arrive quickly when needed.