Credentialing ROI: How Streamlined Processes Save Time, Money, and Morale
By: N. Adam Brown, MD MBA, CMO Radiant Healthcare
In healthcare, a seamless credentialing process does more than ensure compliance—it sets the stage for operational efficiency, financial stability, and a more engaged workforce.
Despite the apparent benefits, many hospitals are stuck in outdated systems that waste time, inflate costs, and frustrate clinicians before they even start work.
With the above in mind, here’s how a well-oiled credentialing process can drive financial savings, reduce turnover, and improve clinician satisfaction.
The Cost of Inefficiency
Credentialing inefficiencies waste time, deplete resources and erode already razor-thin profit margins.
Every day a provider’s start date is delayed costs hospitals up to $10,000. But the financial toll is not limited to onboarding delays. Inefficiencies in credentialing workflows also inflate administrative costs.
Manually handling applications, chasing missing documents, and correcting errors all consume valuable staff hours. In fact, credentialing admins spend around 20 hours per provider application on what remains a complex and confusing process.
Other less obvious costs include:
Denials from payers. Incomplete or inaccurate credentialing often drives claim denials that delay reimbursement or result in lost revenue.
Recruitment. Poor credentialing practices may also increase staff turnover and require positions to be re-advertised. Replacing a primary care physician costs between $250,000 to $1 million when one considers recruitment expenses, lost productivity, and onboarding.
The impact of efficient credentialing
Credentialing inefficiencies undermine operational performance, but streamlining the process can reverse these trends.
Hospitals that integrate technology and various best practices can eliminate time-consuming manual tasks, reduce errors, and accelerate provider onboarding.
Verification processes that are both accurate and efficient also promote compliance with payer requirements, which reduces denials and protects reimbursement flows.
Beyond the financial impact, it’s also clear that smoother workflows improve staff morale and retention. We’ll explore this facet in more detail in the next section.
Reduced Turnover Starts with Better Onboarding
Credentialing is often one of a clinician’s first encounters with the culture, morale, and team unity of their new employer.
While longer onboarding programs can help retain the best talent, tedious and disorganized programs do the opposite.
According to Becker’s Hospital Review, 20% of new hires resign in the first 45 days if the onboarding experience is poor. The risk is elevated for hospitals, which have turned over 106.6% of their staff since 2019.
Credentialing delays and inefficiencies often lead to frustration for incoming clinicians, with repeated follow-ups for missing documents or unclear timelines making them feel undervalued.
The impact of efficient credentialing
In contrast, a smooth credentialing process builds trust and demonstrates an organization’s commitment to supporting its workforce.
It also:
Avoids ambiguity around timelines. Clear communication builds trust and reduces anxiety, allowing clinicians to focus on their new roles.
Increases employee engagement and morale. Efficient credentialing processes demonstrate to clinicians that the organization respects their time. They also help admin teams feel more empowered and accomplished.
Improves retention rates. According to the Society for Human Resource Management (SHRM), 69% of employees are more likely to remain with a company for over 3 years if the onboarding experience is favorable.
Lowers attrition rates. Hospitals with streamlined processes are better able to retain their workforce, reducing the likelihood of workforce shrinkage caused by unfilled positions when staff leave.
Clinician Satisfaction Drives Better Care
Credentialing inefficiencies often add to the administrative burden already felt by many clinicians. Forms, follow-ups, and unclear timelines create frustration and detract from a clinician’s ability to focus on their primary responsibility—patient care.
Administrative overload is a key contributor to burnout. In one study involving over 15,000 physicians, 47.1% said they intended to leave their professions because of work overload.
In another study of UK physicians, 54% showed signs of emotional exhaustion, 40% had feelings of low professional efficacy, and over half (54%) exhibited depersonalization—a phenomenon where clinicians disconnect from their patients and treat them as tasks rather than individuals.
The impact of efficient credentialing
A well-designed credentialing process avoids many of these unpleasant consequences. Repetitive tasks are automated, and physicians can easily stay informed about the progress of applications in a centralized system.
Individuals can also receive alerts about the status of their malpractice insurance, for example, which avoids unnecessary back-and-forth communication.
When clinicians are not burdened by these tasks, they can devote more time and energy to their patients.
Higher engagement among providers subsequently improves patient outcomes and increases job satisfaction—particularly when other factors such as physician autonomy and staffing levels are ideal.
Final Thoughts
Credentialing inefficiencies cost hospitals time, money, and morale.
When workflows are simplified, hospitals can accelerate onboarding, reduce administrative burdens, and create a more satisfying clinician experience. This shift benefits the bottom line in addition to driving retention, engagement, and better care outcomes.
Radiant Healthcare specializes in tailored credentialing solutions that remove bottlenecks and optimize processes.
Want to help your organization streamline its credentialing workflows and achieve measurable results? Reach out today for personalized solutions designed with your needs in mind.
References
https://kevinmd.com/2020/01/can-the-physician-credentialing-process-be-saved.html
https://www.dailypay.com/resource-center/blog/employee-turnover-rates-in-the-healthcare-industry/
https://pmc.ncbi.nlm.nih.gov/articles/PMC10035977/
https://www.som.org.uk/sites/som.org.uk/files/Burnout_in_healthcare_risk_factors_and_solutions_July2023_0.pdf
https://bmjopen.bmj.com/content/14/2/e079931
https://www.beckershospitalreview.com/hr/onboarding-new-employees-in-2023-getting-it-right.html
https://www.themedicusfirm.com/news/onboarding-excellence-in-healthcare-a-blueprint-for-retention-and-success
