The Cost of Customization
Customization is often seen as a luxury--a product or solution that is tailor-made to fit one's exact needs. When it comes to customization in the business of healthcare, customization can be counterproductive.
This is because, on average, physician practices contract with 20 health plans. If each health plan implements its own credentialing process, providers are forced to juggle multiple requirements, formats and timelines. This can be costly and frustrating and may increase the likelihood of delays or incorrect information.
A standardized solution, on the other hand, reduces many of the burdens brought on by customization. When providers can use the same platform for many or all the health plans they contract with, the process is streamlined and predictable.
As more plans and providers use the same platform, the efficiencies increase significantly.
For example, if a provider contracts with 15 plans that use the same credentialing system and 5 that do not, then the practice must manage 6 platforms. If all 20 use the same system, then the practice only needs to enter the information once.
The savings in time and money can be dramatic. A recent CAQH study of the burden providers face when juggling multiple credentialing systems found that practices who used a single platform to exchange credentialing information reported spending on average $1,249.86 in associated administrative costs per month, 39.6 percent less than the $2,068.00 spent per month by those who used multiple approaches.
CAQH Credentialing is relied on by nearly 1,000 healthcare organizations and 2 million providers to streamline their credentialing processes and ensure accurate information. By offering providers one solution to submit their credentialing and directory information for all participating organizations, CAQH significantly reduces the costs and burdens associated with this process. And this widespread adoption is helping to bring the healthcare industry towards one standardized approach to credentialing--and unlocking further efficiency.
To learn more about CAQH Credentialing, click here.