I agree with John completely. You don't need passwords with paper charts. This is where shortkeys comes in handy. The doctor just handles the situation, hits an appropriate shortkey which says, "Handled by Dr. Smith for Dr. Jones or simply handled by Dr. Smith at 8:45 pm on 1/2011.
At some point you have to treat the patients and not the lawyers.
You could also get a long statement using shortkeys that would have to be written out by another doctor. Another covering doctor may do a crappy job, but I doubt they are going to lie and type in your usual statement.