This kind of thing is going to further disassociate nurses from interacting like a human with their patients. If you risk criminal prosecution and prison time from making a mistake, everyone starts walking on eggshells and become afraid of doing anything beyond box ticking. They'll start turning a blind eye to things they know are wrong, because the system doesn't see them. All work will align towards pure compliance with the law and the hospital system at the expense of intimate connection with patients.

And of course, a lot of nurses are in the job for the human connection, and will consequently be burned out at an increasing rate.

To some degree this might actually be good long term, because it will be that much harder for hospitals to manipulate nurses into working around the limitations of the system to provide real care, which allows the administration to turn a blind eye to their own flaws. There's going to be a surge of malicious compliance that ends up shining a bright spotlight on just how abusive and dysfunctional hospital systems really are.

And patients will ultimately be the ones who suffer.