Telehealth's New Frontier: Credentialing and Regulatory Shifts in 2024

Michelle Ofiwe
11 Apr, 2024 updated

In this article, we delve into the complexities of provider network management, exploring the challenges and proposing solutions to streamline these critical processes and provide healthcare organizations with actionable strategies to optimize their provider networks.

The process of onboarding, credentialing, and contracting providers to serve a member population is a critical aspect of healthcare delivery, involving the intricate management of relationships between healthcare providers and payers. At the same time, these processes are often manual, lengthy, opaque, and costly. There is a significant operational cost for healthcare organizations to credential providers, as well as a reputational cost associated with having inaccurate provider data due to substandard credentialing processes.

What Is A Provider Network In Healthcare

Effective healthcare network management ensures that providers have the necessary resources to deliver top-notch care. This management approach significantly reduces administrative burdens, allowing providers to receive timely reimbursements for their services and concentrate on their primary role – delivering medical care.

Efficient credentialing and enrollment processes are essential for healthcare organizations to fulfill their obligations to states, health plans, and the federal government, ensuring the best care possible.

Credentialing is a key component of this process, verifying that providers meet specific quality standards and possess the requisite training and certifications to provide high-quality care. Enrollment, on the other hand, involves adding providers to a payer's network.

Timely credentialing reduces the number and severity of denials and rejections that affect the revenue cycle, as you avoid the common causes: expired or invalid credentials, mismatched information, or lack of authorization. A proper credentialing process can also help resolve issues faster and more effectively as you will always have the necessary documentation and evidence on hand.

The Consolidated Appropriations Act of 2021, along with state regulations, mandates collaboration between health insurers and healthcare practitioners to protect consumers from unexpected out-of-network bills. This Act introduced a directory verification mandate for various health plans, aligning with the Centers for Medicare and Medicaid (CMS) requirements for directory accuracy, which necessitate updates every 90 days.

These measures underscore the importance of maintaining up-to-date, accurate provider information, a critical aspect of efficient healthcare network management.

Healthcare Provider Network Management Market

The provider network management market encompasses a range of software and services. These include contract management, credentialing, performance assessment, network optimization, patient steerage, and more. Each of these components plays a crucial role in the efficient management of healthcare provider networks.

Healthcare providers and insurers are increasingly turning to sophisticated network management solutions to enhance the quality of care and reduce costs within an increasingly complex system. The global Healthcare Provider Network Management market was valued at USD 3,204.65 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 13.94% during the forecast period, reaching an estimated USD 7,011.95 million by 2028.

This market growth is expected to be fueled by several key factors. These include improvements in the quality of care driven by payer reporting requirements, advancements in healthcare IT solutions, and a growing awareness of insurance policies.

Efficient Provider Network Management

Optimized provider network management, much like other successful business processes, is characterized by its flexibility. This means that if a particular approach isn't yielding the desired results, the organization is agile enough to shift directions. Effective medical network management involves diverse teams collaborating and sharing knowledge, which saves time and eliminates redundant work.

Organizations that excel in managing their provider networks think strategically and implement holistic processes that address multiple steps simultaneously. Importantly, good provider network management is proactive, always staying ahead by anticipating potential issues and preparing for them.

Reimagining provider network management means embracing automation and leveraging technology to enhance processes throughout the provider lifecycle. This approach significantly improves data quality, optimizes various processes, and boosts the value added by provider services.

Healthcare Provider Network Management: Credentialing Systems

Despite the challenges, there are effective ways to simplify the processes of provider network management. A key solution is the use of cloud-based credentialing software, which automates and refines each step of the credentialing process, from data gathering to verification, approval, and renewal. This approach not only enhances efficiency and accuracy but also saves considerable time and effort.

Such software keeps users informed about crucial credentialing events, including renewal deadlines and expiration dates, aiding in maintaining compliance and avoiding potential penalties.

Security is a paramount concern in provider network management software, necessitating robust measures such as multifactor authentication, stringent password protocols, restricted access permissions, data encryption, antivirus defenses, regular backups, and comprehensive security audits to safeguard data and ensure privacy.

  • Ongoing monitoring

Ongoing monitoring is a critical component of these systems. It continuously assesses provider eligibility, mitigating potential risks by automating the retrieval of status from trusted primary sources like the NPDB. This streamlined workflow reduces the need for manual verification.

An automated system for status retrieval is invaluable, offering real-time snapshots of provider eligibility, thereby aiding in adherence to compliance requirements. For instance, automated alerts about changes in provider status can help mitigate risks and reduce the workload involved in verification processes, ensuring timely and effective interventions.

  • Contracting and enrollment

Automated processing of provider data significantly simplifies the initial phases of enrollment, reducing the paperwork and associated delays. Real-time monitoring provides clear insights into the progress of applications from their initiation to enrollment, showcasing pending tasks, their status, and deadlines. This feature is particularly beneficial for specialized management needs, allowing the marking of providers for dedicated specialists to update profiles and re-attestations.

  • Use analytics and reporting

Due to the volume of data involved in the onboarding process and subsequent reporting, this can be a challenging area. Continuous monitoring of essential metrics like turnaround times and statuses provides ongoing awareness, helping in accurately assessing the performance and efficiency of data management processes.

Having accessible and interpretable data is crucial for identifying performance bottlenecks. Being able to pinpoint delays in the credentialing process readily allows for a data-driven approach to enhance operational efficiencies, making these analytic insights beneficial even for those with minimal expertise in data analytics.


The importance of efficient Provider Network Management in the healthcare sector is immensely significant. The adoption of advanced technological solutions into provider management processes signifies a crucial move away from traditional methods, which are often manual, time-consuming, and prone to errors. As the healthcare provider network management market is expected to experience substantial growth, the adoption of these technological innovations is becoming increasingly essential for healthcare organizations.

Effective management of provider data, streamlined credentialing and enrollment processes, and the utilization of analytics for informed decision-making are revolutionizing healthcare network operations. As healthcare regulations evolve and the industry increasingly moves towards value-based care, it's imperative for healthcare organizations to stay agile and proactive.

The journey towards optimized provider network management is both challenging and rewarding. Embracing change, prioritizing the integration of technology, and focusing on strategic network management are key for healthcare organizations aiming to excel. This proactive approach to provider network management is not only a strategic imperative but also a pathway to better healthcare outcomes and increased operational efficiency.

What are the key components of effective provider network management in healthcare?

Effective provider network management in healthcare involves credentialing to verify provider qualifications, enrollment to integrate providers into payer networks, and leveraging technology for process automation and data management. It also requires adherence to healthcare regulations for maintaining accurate provider directories and employs ongoing monitoring and analytics to assess provider performance and compliance.

How does technology impact provider network management for healthcare organizations?

Technology transforms provider network management by automating credentialing and enrollment processes, enhancing data accuracy, and ensuring regulatory compliance. It streamlines operations, providing real-time updates for provider directories, improving reporting capabilities, and reducing administrative costs.

What are the benefits of optimizing provider network management for healthcare decision-makers?

Optimizing provider network management enhances operational efficiency, improves relationships with providers, ensures regulatory compliance, and focuses on quality patient care. It also provides strategic advantages in the competitive healthcare market through effective resource management and provider network deployment.

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