What is the reasoning for not filing incident report in medical records?

Incident reports are for hospitals to track errors and prevent them in the future. They are purposely not meant to be punitive, because this would prevent employees from filing them. If an incident report is placed in a medical record it becomes potential evidence should a patient file a lawsuit. Likewise, if an incident report is even MENTIONED in a medical record as being filed, it is discoverable by an attorney and can be used in a lawsuit.