Cloud-Based Medical Credentialing Software: A Game-Changer for Your Healthcare Operations

Alexander Bushuev
16 Jul, 2023 updated

This article will delve into the advantages of PDMs over MDMs and discuss the potential benefits of integrating an existing MDM with a PDM system.

While the digitization of patient data has rightly been a priority, the digitization of provider data has often been overlooked. Yet, this data is vital for the efficient operation of hospitals and health systems. Every department and essential operation depends on some aspect of provider data for effective functioning:

  • Scheduling and compliance teams work diligently to ensure providers' privileges are current.
  • Credentialing teams must be aware of which providers hold active licenses.
  • Referral teams need to be informed about providers' subspecialties and network affiliations with payers.
  • Billing teams require information about referring providers to accurately bill for ancillary services.

In terms of managing provider data, health systems historically had limited options. Typically, they either developed in-house databases or depended on Master Data Management (MDM) systems.

However, the landscape is changing with the advent of Provider Data Management (PDM) systems, tailor-made for the healthcare sector. These systems have made a significant impact since their introduction. This article will delve into the advantages of PDMs over MDMs and discuss the potential benefits of integrating an existing MDM with a PDM system.

The Difference Between Master Data Management (MDM) and Provider Data Management (PDM) Systems

Both Master Data Management (MDM) and Provider Data Management (PDM) systems offer centralized storage for substantial volumes of high-quality data and facilitate integration with other systems.

  • PDM systems are specifically tailored for provider data.

They feature a data model encompassing comprehensive clinician data points, sourced either manually or from reliable data feeds like credentialing platforms. Essential provider details such as practice locations, specialties, subspecialties, health plan affiliations, and network participation are all incorporated into PDMs.

  • MDM systems are more general, serving as application-agnostic data repositories.

They necessitate significant input from IT teams and experts to create data models, business workflows, user applications, reporting tools, and system integrations. MDMs also demand considerable ongoing IT support for development and maintenance, as well as a skilled technical team for database configuration and data retrieval. In contrast, PDMs are generally more user-friendly, requiring minimal technical assistance post-implementation.

  • Data management and sharing also differ between the two.

PDMs aim to consolidate, cleanse, and normalize provider data across an Integrated Delivery Network (IDN), with continuous updates to all healthcare systems via Application Programming Interfaces (APIs). MDMs, however, often require manual consolidation, de-duplication, loading, and cleansing of provider data, a task that can be burdensome without dedicated data curation resources.

While MDMs offer robust security, they can be challenging and time-consuming to design and extract data from. PDMs, on the other hand, are designed to be more agile and real-time, providing a ready-to-use repository of all necessary provider data for functions ranging from registration and scheduling to referrals and billing, simplifying data entry and retrieval processes.

Diverse Needs, Different Systems: MDM vs PDM for Healthcare

Mid-to-large-sized healthcare organizations aiming to conduct extensive clinical research and data analysis could find Master Data Management (MDM) systems particularly advantageous. For instance, when conducting a study on specific patient groups across multiple hospitals over several years, MDMs can supply a comprehensive and rich dataset. They are also valuable for claims processing and related research. However, leveraging MDMs for such complex tasks necessitates a robust data analytics team.

Provided the necessary resources and technical expertise are available, MDMs can offer healthcare organizations an exhaustive understanding of patient data.

On the other hand, Provider Data Management (PDM) systems are ideally suited for provider and payer organizations seeking a centralized, constantly updated, and reliable source of provider data. PDMs excel in streamlining data management processes, significantly influencing the patient experience by increasing patient acquisition and reducing patient leakage.

Unlike MDMs, PDMs provide unique functionalities and operational efficiencies, such as provider search and outreach, managing locations, health plans, and networks, as well as enabling real-time provider enrollment directly from a provider directory.

Both MDM and PDM systems offer distinct benefits, particularly in terms of high data accuracy and security. A blend of these data management systems can be beneficial for many healthcare organizations, each complementing the other to cover a wide range of data management needs.

Provider Data Management vs Master Data Management: Analysis

While both PDM and MDM systems offer high data accuracy and security, their cost-effectiveness depends on the specific needs of the healthcare organization. PDMs may be more financially viable for organizations focusing on provider data management, while MDMs could be beneficial for extensive research and data analysis needs.

  • Initial investment and ongoing costs

PDM Systems: The initial cost includes software purchase, setup, and staff training. Ongoing expenses involve system maintenance and periodic updates. Given their user-friendly nature, PDMs usually require less technical staff involvement, potentially reducing long-term labor costs.

MDM Systems: MDMs often require a more substantial initial investment due to their complexity. This includes developing a data model, integrating with existing systems, and comprehensive staff training. Ongoing costs are higher due to the need for a dedicated IT team for maintenance and updates.

  • Return on investment (ROI)

Efficiency Gains: Both systems improve operational efficiency by centralizing provider data. However, PDMs, specifically designed for healthcare provider data, may offer quicker and more significant efficiency improvements in provider-related operations.

Reduced Errors and Compliance: Streamlining data management reduces errors and enhances regulatory compliance. This can translate into cost savings by avoiding penalties and reducing time spent on correcting data-related issues.

Revenue Impacts: Efficient provider data management can minimize patient leakage and improve network utilization, directly impacting revenue. PDMs, with their real-time data updates and ease of use, might offer a quicker return in this area.

  • Risk assessment

Transition Risks: Transitioning to a new system poses risks like temporary operational disruptions. PDMs, being more specific and potentially easier to implement, might present lower transition risks compared to MDMs.

Data Security: Both systems offer high data security, but the complexity of MDMs might necessitate more robust security protocols, incurring additional costs.

  • Long-term financial implications

PDM Systems: With minimal ongoing technical requirements and significant potential for operational efficiency, PDMs may offer a favorable long-term financial impact, especially in provider-centric operations.

MDM Systems: Ideal for large-scale data analysis and research, MDMs can provide valuable insights for strategic decision-making, albeit with higher ongoing costs.

Credentialing Software: Secure and Streamlined Provider Management

The right cloud-based credentialing software streamlines the provider data management process, from collection to verification, approval, and renewal. The software keeps track of critical dates like renewals and expirations, aiding in maintaining compliance and preventing penalties. Security is a top priority, with features including multifactor authentication, strong password protocols, access controls, data encryption, antivirus, regular backups, and security audits to safeguard data and privacy.

Provider Data Management

Credentialing platforms like Credsy provide a comprehensive solution for managing provider network data. These platforms streamline onboarding, updates, and task management, integrating with systems like CAQH for real-time data access and automating profile updates to reduce administrative work. They also offer robust communication tools, centralizing data and practice settings.

Key features include ongoing eligibility monitoring and automated status retrieval from sources like NPDB, enhancing workflow efficiency and reducing manual verification needs. Additionally, these platforms continuously track crucial metrics, offering real-time insights for evaluating data management performance and effectiveness.

Payer Contracting and Enrollment

Credentialing platforms streamline the initial enrollment process of provider data by automating tasks, thereby minimizing paperwork and delays. These platforms feature real-time dashboards that provide transparent tracking of application progress, from start to completion. They display pending tasks, current status, and upcoming deadlines for efficient management. Additionally, for specialized requirements, such platforms enable the assignment of providers to designated specialists for profile updates and re-attestations, ensuring tailored management of provider data.


Such platforms enhance the process with integrations to primary sources for faster verifications, improving speed and accuracy. They feature role-based permissions for efficient operations and automated communications for provider follow-ups, including direct data import from CAQH for up-to-date profiles.

Healthcare Provider Licensing

Certain platforms include digital fingerprinting and professional advice in addition to managing licenses in all 50 states, Puerto Rico, and the U.S. Virgin Islands, as well as real-time license status tracking.

The technology minimizes human labor in state board submissions, automates the renewal process, and notifies users well in advance of deadlines for renewals. To guarantee that educational credits are completed, it also oversees continuing education requirements, monitors progress, and issues reminders.

In conclusion

The evolution of provider data management, transitioning from traditional Master Data Management (MDM) to innovative Provider Data Management (PDM) systems, marks a significant advancement in healthcare operations. This shift addresses the critical need for accurate, efficient, and readily accessible provider information, a cornerstone for the seamless functioning of various healthcare departments.

PDMs, with their provider-specific design, offer a real-time, user-friendly approach to managing essential provider details, which is crucial for enhancing patient care and operational efficiency. While MDMs continue to play a vital role in extensive data analysis and research, PDMs emerge as a more practical choice for everyday healthcare provider data management, offering a direct positive impact on patient experience and provider workflow.

Healthcare organizations must weigh the specific needs of their operations when considering the implementation of these systems. The integration of PDMs into existing infrastructures, especially in conjunction with MDMs, can lead to an optimized blend of data accuracy, security, and functional efficiency. Ultimately, the strategic use of these systems can lead to improved patient outcomes, streamlined operations, and a more robust healthcare system overall.

What are the key differences between MDM and PDM systems in healthcare?

MDM Systems are more general, serving as application-agnostic data repositories requiring significant IT input and ongoing support. Useful for extensive research and data analysis. PDM Systems are specifically tailored for provider data, offering real-time updates and ease of use, ideal for everyday healthcare provider data management.

How do PDM systems benefit healthcare organizations?

PDM systems streamline provider data management, enhancing operational efficiency, reducing errors, and improving compliance. They positively impact patient experiences by facilitating provider search and outreach, managing locations, plans, and networks, and enabling real-time provider enrollment.

What should healthcare organizations consider when choosing between MDM and PDM systems?

Organizations should assess their specific needs for data management. MDMs are beneficial for large-scale data analysis and research, while PDMs are more suited for efficient, everyday provider data management and direct patient care improvements.

Book your Free Consultation Today

And pick our brain for free. Zero commitments.

(954) 710-8991

Most popular

Most popular news, reading resources and articles about medical licensing and payors


Value-Based Care: The Future of Healthcare?

VBC is a novel reimbursement methodology linking payment directly to the quality of care provided. It functions as a promising alternative to conventional fee-for-service reimbursement, rewarding healthcare providers for efficiency and effectiveness, as opposed to the sheer volume of services.


How to Connect Fragmented Provider Data and Why It Matters

Grappling with the challenge of scattered provider data is like trying to solve a complex puzzle. This data isn't just a bunch of numbers and names; it's the heartbeat of top-tier healthcare delivery. Harnessing the power of technology to bring all this data under one roof can be a game-changer.