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How Does Medical Credentialing Work and What Does it Entail

How Does Medical Credentialing Work and What Does it Entail

The medical credentialing process aims to establish and uphold effective standards within the medical community, with the primary objective of promoting patient confidence and ensuring top-quality care. Additionally, medical credentialing plays a crucial role in verifying the license and education of practitioners, as well as streamlining other vital information necessary for providing services and collaborating with insurance companies.

When an organization needs to verify an individual’s medical credentials, they usually reach out to the certification boards and licensing agencies. They may also contact the individual’s previous employers, such as hospitals or clinics, to confirm their work history. In some cases, the process may also involve investigating specialty certificates.

Medical credentialing is usually a part of the new hire process. Still, it may also be conducted periodically to comply with specific regulatory standards, especially in specialties that require continuing education for licensing. The process may involve communicating with larger institutions such as The Centers for Medicare and Medicaid Services, The Joint Commission, or the National Committee for Quality Assurance.

There Are Two Stages To Medical Credentialing.

The medical credentialing procedure is often divided into two stages.

Validating Competence

The stage considers this person’s schooling, training, continuing education credentials, job experience, and active licenses. As well as any previous license failures.

Privileging

This step effectively allows a healthcare professional to conduct specified treatments and procedures based on the competence information.

The Advantages of Medical Credentialing

Medical credentialing is more than just a quality assurance measure in the medical field. It also instils confidence in clinics, hospitals, and emerging private practices to hire competent personnel. Additionally, it affects the actions of insurance companies, influencing the rates they offer patients and how they evaluate medical malpractice insurance for providers.

Moreover, medical practitioners appreciate the convenience of medical credentialing privileges, facilitating their acceptance of patients with adequate insurance coverage. This enables doctors, nurses, specialists, and other medical professionals to increase their patient load without worrying about claim rejections or denials.

Ultimately, patients can trust that medical professionals are using the most rigorous best practices in the industry to provide them with the highest quality of care.

Who Requires Medical Credentialing?

Medical credentialing is currently considered an industry standard for a wide variety of general practitioners and specialists.

This includes the following:

  • General Physicians
  • Dentists & Orthodontists
  • Ophthalmologists & Optometrists
  • Physical Therapists Physician Assistants
  • Podiatrists
  • Practicing Nurses
  • Chiropractors
  • Counsellors
  • Family Therapists
  • Marriage Counselors
  • Social Workers
  • Psychologists & Psychiatrists
  • Behavioral Therapists

During The Credentialing Procedure, could A Practitioner Treat Patients?

The medical credentialing process serves as a quality assurance and verification procedure, and it mandates that an individual may not treat patients until their results have been certified. This rule exists to guarantee that patients receive top-notch care only from practitioners who are genuinely qualified to provide it. In addition to upholding care standards, this requirement also lessens liability risk for medical institutions such as clinics and hospitals.

Do Medical School Students Require Credentials?

Technical, medical students, including those in residency and fellows, are supervised by a credentialed professional, such as an attending physician, and can only provide treatment within the scope of their training and under the guidance of their program. This is a rare exception, as they have not technically finished their training to earn official privileging.

Which Organizations Need Credentialing?

To treat patients, a wide range of medical institutions require credentialing and medically privileged practitioners. This includes the following:

  • Ambulances
  • Diabetes Educators
  • Dialysis
  • Drug & Alcohol Recovery Centers
  • Home Health Services
  • Hospice Care
  • In-Home Care Services
  • Independent Diagnostic Testing
  • IV Home Infusion Therapy
  • Laboratories
  • Lithotripsy
  • Medical Equipment Provider
  • Prosthetic & Orthotic Clinics
  • Radiology & Diagnostic Imaging Centers
  • Sleep Disorder & Sleep Study Clinics

What Is the National Quality Assurance Commission?

Also known as the NCQA. It is a non-profit organization that assesses and immediately reports on the quality of healthcare companies before awarding them credentials. This includes the following:

  • Preferred Provider Organization
  • Managed Behavioral Healthcare Organizations
  • New Health Plans
  • Doctor Organizations
  • Managed Care Plans
  • Credentials Verification Organizations
  • Disease Management Programs

The Joint Commission: What Is It?

The organization, commonly known as TJC, is an accrediting body that aims to uphold the highest standards and best practices in the United States healthcare industry. Hospitals and clinics have the option to voluntarily undergo TJC accrediting surveys every three years.

What Are the Centers for Medicare and Medicaid Services?

The CMS is a Federal Government department that is part of the United States Department of Health and Human Services. It is responsible for a wide range of tasks, including monitoring quality standards in long-term care institutions and clinical laboratories.

However, its most common role is to work with state and local governments to administer Medicaid and the Children’s Health Insurance Program and maintain health insurance portability regulations.

What Is Primary Source Verification?

Primary source verification is critical in preventing fraud in the medical credentialing process. They collaborate closely with the Board of Medicine to ensure that all medical licenses are valid and that licensed healthcare facilities comply with high criteria.

How Does a Medical Practitioner Get Their Credentials?

The medical credentialing process varies depending on the facility and the specialty, although some fundamental components are present throughout all verification and privileging phases. Most institutions have a preferred credentialing service, and larger clinics and hospitals with multiple specialists may retain more than one.

The application process typically begins with submitting documents to a CVO via mail, fax, or email. The credentialing service professionals then initiate the verification process, which entails creating a file for review by the credentialing committee. Upon completing the process, the practitioner’s application file and a letter detailing the reasons for its approval or denial will be sent to the medical facility.

What Is the Function of a Credentialing Committee?

A credentialing committee comprises experienced individuals whose responsibility is to uphold the integrity of the medical credentialing process. This involves supervising the application procedure and verifying that all parties meet the necessary standards. The committee is generally composed of physicians from diverse specialties, along with a chairperson and liaison personnel.

How Long Does It Take To Get Medical Credentials?

The duration of the medical credentialing process may vary depending on the medical institution and the practitioner applying for credentials. For simple cases where only a limited amount of background information is needed, the process could take as little as 7 to 10 days. However, if the applicant is a specialist or the application is incomplete, the process may take several weeks to several months.

To avoid complications, it’s recommended that individuals applying for medical credentials plan to initiate the application process at least 90 days before their intended start date. This timeframe allows sufficient time for every process stage to be completed without undue delays. In case of issues or minor clerical errors, there is ample time to have them corrected without causing any complications.

There are steps that both the medical institution and the applicant can take to assist in speeding up the process. This includes the following:

  • Including the practice and remit addresses
  • Filing with the Taxpayer Identification Number
  • Include the National Provider Identifier-2
  • Verify the phone and fax number
  • Include a completed W9 for the individual or the practice
  • Include your IRS 147C Letter

What Is The Cost Of Medical Credentialing?

The expense associated with medical credentialing can differ based on the medical institution and specialty and may also vary depending on the fee structure of the credentialing service being used. As a medical practitioner seeking to obtain medical credentials, the estimated cost is $200 to $300 per provider per application. However, some medical institutions may cover these costs or provide reimbursement upon successful completion of the process.

How Billing Services Can Help In Medical Credentialing?

Top medical billing services would act as a liaison between the healthcare provider and the credentialing organization, such as an insurance company or a healthcare facility. They may assist the healthcare provider in completing the necessary credentialing applications and gathering the required documentation, such as diplomas, licenses, and certifications.

The medical billing company may also follow up with the credentialing organization to ensure that the healthcare provider’s credentialing application is processed in a timely manner and that any issues or concerns are addressed. Once the healthcare provider is credentialed, the medical billing company may also update the provider’s information in their billing system to ensure that claims are submitted correctly and that the provider is paid for their services

How Often Do Medical Credentials Need to Be Updated?

The frequency of updating medical credentials can differ across institutions, with most requiring providers to update their credentials every one to three years. This is especially true if their medical license mandates a certain activity level or continuing education. Many specialties also set an expiration date on a provider’s credentials to ensure they maintain the highest standards of professionalism. In case of a lapse, the practitioner is required to apply for reinstatement.  The best medical credentialing companies stay up-to-date with credentials by utilizing advanced technologies that enable them to constantly monitor and track any changes in regulations, policies, and requirements. They also employ highly trained and experienced staff members who are knowledgeable about the latest industry developments, ensuring that they can keep pace with any changes in credentialing requirements.

Is It Possible To Monitor The Medical Credentialing Procedure?

Certain medical credentialing services offer cloud-based applications that enable applicants to monitor the process via an app or email. This feature can be particularly helpful if there are any accidental errors or other complications with the application. However, the availability of this feature depends on the service used by the institution and the specific institution itself.

Handling of Post-Medical Credentialing

After the medical practitioner has been credentialed and their information has been submitted to the institution for approval, they can proceed to sign a contract with an insurance company. This enables them to bill as an in-network provider and receive reimbursement. This is particularly significant for small practices that may handle their medical billing or outsource the task to a third-party medical billing service.

What Is Recredentialing?

Recredentialing refers to the process of re-enrolling or re-credentialing with a medical institution, which is typically required every one to three years. Practitioners are usually notified in advance of the deadline through a letter. Failing to reapply on time could result in a lapse or suspension of the medical credentials, requiring the practitioner to go through the reinstatement process. In many cases, the institution may cover the cost of credentialing or reimburse the individual practitioner upon successfully completing the process.

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About cristinealexx

Best medical billing services is made up of trained professionals with more than 20 years of expertise in medical billing, information technology, and business consulting. Throughout the previous decade, our leadership team of billers and coders has worked with a variety of hospitals, medical practices of all sorts, laboratories, and individual physicians

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