According to this, "it has been estimated that hospitalacquired infections are responsible for 80,000 deaths in the United States and 5,000 deaths in the United Kingdom." "Compliance rates were ... lower among physicians (32%)." So only 32% of doctors are washing their hands, killing 80,000 people per year. I will let the reader decide whether they want to compare this to the deaths caused by automobiles (32,367) or handguns (31,672), but apparently keeping hands clean in hospitals is a serious public health problem, and one that, of all people, hospital administrators, doctors and nurses should all be doing everything they can to fix it.
The good news is that micromanagement works: "The majority of the time, the situations that were associated with a higher compliance rate were those having to do with dirty tasks, the introduction of alcoholbased hand rub or gel, performance feedback, and accessibility of materials."
This isn't about monitoring bathroom breaks, it is about monitoring basic competence to do your job. A patient is supposed to end a hospital visit healthier than they started, and if health care professionals are doing things that make that goal more difficult then they are failing at their job. It's not the same as, say, monitoring the number of lines of code that a developer writes (where there is, at best, a tenuous relationship between the measured value and the quality of software - and probably none at all), it is a well-documented and serious problem that kills people. It's more like measuring whether a developer leaves his workstation turned off all day. Washing hands regularly is a necessary though not sufficient condition to make people healthy in a hospital, and if constant monitoring is required to get more than 1/3 of doctors to do it, then so be it.