5 Common Challenges in Credentialing for Healthcare Providers

Andi Stamper

July 1, 2023

Credentialing

Healthcare credentialing is vital to patient safety and delivering quality care. However, it’s not without a lot of challenges. Providers often face several obstacles during the credentialing process, which delay opportunities and can impact their careers. Delayed credentialing also costs the healthcare industry billions of lost monies every year.

In this article, we will explore 5 common challenges in healthcare credentialing and provide some actionable strategies to overcome them. Just understanding these obstacles can help providers streamline the credentialing process so they don’t miss out on any more opportunities.

1. Lengthy Application Processes

One of the top challenges in healthcare credentialing is the lengthy application process. Providers often find themselves swamped with paperwork and administrative tasks. To overcome this challenge, providers can streamline the process by leveraging tools and technology. For instance, they could use credentialing software or an online platform like HealthShield Credentialing to significantly reduce the paperwork, organize and manage their documentation, and accelerate the onboarding process.

2. Navigating Complex Requirements

Credentialing requirements can be complex and vary across different healthcare organizations and specialties. Providers must stay informed and up to date with all these requirements. The best way to do this is to stay current with continuous education, attend seminars, and participate in professional networks. Additionally, seeking guidance from credentialing experts or hiring a credentialing specialist can provide valuable insights and ensure compliance with all necessary criteria.

3. Gathering and Verifying Documents

Collecting and verifying the necessary documents is one of the most time-consuming aspects of credentialing. But the great thing is providers can overcome this challenge by creating a centralized document repository like a cloud-based system. By organizing and maintaining a comprehensive file of their credentials, certifications, licenses, and other relevant documents, providers can easily access and submit the required information quickly. To avoid delays in the credentialing process, providers should regularly update and renew documents ahead of expiration dates.

4. Managing Multiple Credentialing Processes

Providers often work at different healthcare facilities or participate in various insurance networks, each with its own credentialing process. Juggling multiple processes can oftentimes be very overwhelming. Providers should create efficient systems for managing their credentialing processes to overcome this challenge. So that may include creating a detailed checklist, setting reminders for renewals, and utilizing project management tools. These can help providers stay organized and ensure the timely completion of each credentialing process.

5. Addressing Credentialing Delays

Credentialing delays can be frustrating for healthcare providers, especially when they are ready to start practicing or pursuing new opportunities. To handle delays, providers should maintain open lines of communication with credentialing bodies and healthcare organizations. Proactively following up, providing requested information promptly, and building professional relationships can help expedite the credentialing process. Additionally, staying updated on the status of applications and addressing any concerns or discrepancies in a timely fashion can also prevent unnecessary delays.

Main Takeaway

Healthcare credentialing presents many challenges for providers, but with proper strategies in place, these obstacles can be overcome. By streamlining processes, staying informed, utilizing technology like HealthShield Credentialing, and seeking expert guidance when needed, providers can navigate the credentialing journey smoothly and unlock a world of professional opportunities.

About The Author

We at HealthShield Credentialing understand the hassle, inefficiencies, and frustration with credentialing. We help you create one shareable database to keep your credentialing documents secure, ready to share, and available at a moment’s notice. Therefore, no more searching for credentialing information or having to wait until you are home to share your data.

STEPS TO FOLLOW TO BUILD A 1099 BUSINESS:

Protect yourself and your assets by performing your contract work under the umbrella of a business entity. Think about what you’d like your proposed business to be named!
- Visit your Secretary of State website to see if your chosen name is available
- Check with your state’s Board of Nursing for state specific requirements
File applicable business set-up paperwork

The S-Corp Edge: How you structure your 1099 CRNA business will have far-reaching consequences, whether it is a sole proprietorship, a limited liability corporation (LLC), or an S corporation (S-corp).
An S-corp may offer several advantages over other business structures when it comes to taxation. In this structure, a business owner is called a shareholder, and the business owner is recognized by the IRS as an employee of the business. What this means is that the business owner must pay themselves a salary through the corporation. The S-corp pays their payroll taxes, which can in turn be deducted as a business expense. Income tax is paid through its owners’ tax returns based on their percentage of ownership. Moreover, any remaining profits have a lower tax rate than regular income. An S-corp may also allow 1099 CRNAs to avoid a higher tax level that other self-employed contractors pay for Medicare and Social Security.
A CRNA may structure their company as an S-corp serving as the sole owner, with their business income, tax deductions, and losses passing through to the owner, as opposed to being taxed at a corporate level – a potentially smart move for maximizing financial security in the future.

- Register for an EIN
Open a business checking account and credit card
Keep track of all your business expenses as these could save you money come tax time!
- Have an envelope for receipts or a folder on your computer where you scan these into
Be sure not to co-mingle your business and personal finances!
Remember, as a freelance CRNA, if you don’t work, you don’t get paid!
- Do you have at least six months savings should your contract abruptly stop?
Think about replacing your current benefits
- Health Insurance
- Health Savings Account/Dependent Savings Account
- Retirement Savings Account
- Life Insurance
- Disability Insurance
Procure malpractice insurance
Look for jobs!
Apply for state licenses where you want to work
- Each state needs a different CRNA license (and RN if they are not a compact state). Keep this in mind as some BONs can take 3-6 months to license a provider.
Have an employment attorney review your contract
Have your contract written to your business and deposit all earnings into your business checking
Keep A Schedule

As a W-2 employee, your taxable income and amounts taken out for taxes appeared on your W-2 form at the end of every year, without you having to calculate them. But when a firm pays more than $600 for services from an independent contractor, that income must be reported to the IRS.
What many 1099 CRNAs don’t realize is that they must pay taxes on their income as they earn it. Paying your quarterly estimated income taxes will be a new part of running your business successfully.
It doesn’t sound so difficult—keeping track of paying estimated income tax only happens four times a year. But the reality is a late payment can result in penalties and fines from the IRS. Keeping a schedule to help you stay on top of your quarterly estimated tax payments, and paying adequately to avoid underpayment, is imperative in avoiding penalties in the future. Not to mention providing peace of mind!

Make sure you have a trusted team of accounting and/or financial professionals who have experience with freelance CRNAs to guide you through this process!

CPAs
Financial Planners
Bookkeepers

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