The determination of Pass/Fail decisions over Borderline grades, (i.e., grades which do not clearly distinguish between the competent and incompetent examinees) has been an ongoing challenge for academic institutions. This study utilises the Objective Borderline Method (OBM) to determine examinee ability and item difficulty, and from that reclassifying each Borderline grade as a Pass or Fail. Using the OBM, examinees’ Borderline grades from a clinical examination were reclassified into Pass or Fail. The predictive validity of this method was estimated by comparing the examination original and reclassified grades to each other and to subsequent clinical examination results. The new model appeared as more stringent (p<.0001) than the original decisions. Implications for educators and policy makers are discussed. The OBM2 is found to provide a plausible solution for decision making over borderline grades in non-compensatory assessment systems.