By Matthew Haddad, President & CEO,
Medversant Technologies, LLC
These days, it seems that everyone is being “credentialed.” Americans are painfully aware of the need to produce credible, current identification each and every time they board a flight. Banks and consumer credit companies use increasingly sophisticated techniques to ascertain identity and eliminate fraud. For decades, the healthcare industry has relied on the process of credentialing to identify providers and qualify them for practice. Unfortunately, technology solutions have made little headway in truly improving the healthcare credentialing process, which is still largely manual in nature and symbolized by the paper file. Provider credentialing as the principal source of provider information for the organization as a whole is a source of massive errors and inefficiency. Aside from the human error involved with manual, paper-based processes, provider information changes constantly and without warning-from innocuous changes in demographics to more problematic changes in professional and legal status. Under typical manual credentialing systems, this type of data inaccuracy flourishes and opens the door for the dangerous and destructive consequences of medical provider fraud.
Luckily, with the advent of Web services and other software innovations, this area is poised for dramatic change. With real-time information-rather than updates which can arrive months or even years following changes to a provider’s credentials or profile-healthcare organizations can ensure patient safety, decrease liability, and protect their institutions from financial harm. Continuous monitoring of provider credentials allows immediate, automated notification of any discrepancy in provider information as compared against trusted primary sources (e.g., DEA, State License Boards, etc.)-and finally prepares healthcare organizations to efficiently and inexpensively eliminate provider fraud in moments.
The Manual Credentials Process-A View into an Outdated World
Generally, the credentials process starts with the attempt to acquire provider information, typically through various paper applications. An important exception to this rule is the Web-accessible universal application provided by the Committee on Affordable Quality Healthcare (CAQH), a bright spot in this dark environment. Once the initial information is received from the provider, it must be checked for completeness and accuracy, often requiring manual follow-up with the provider to complete the application. The information must then be verified against approved third-party “primary” sources, in accordance with standards such as the Joint Commission, NCQA, URAC, CMS and Medicaid guidelines. In most cases, this means a flurry of letter writing, faxing and Web searching to find and record verification results.
Under these paper-based processes, verification can last several months and all too frequently, information initially gathered has expired by the time verification is complete, necessitating new verification efforts and provider involvement. Along the way, there are innumerable opportunities for illegitimate healthcare providers to slip through the cracks and offer fraudulent credentials or identity information.
Once verification is complete, collected information is manually entered into available database systems. Most organizations have separate credentialing, billing, HR, etc. database systems, often leading to duplicative efforts and the creation of multiple discrepant provider records.
While this data entry is occurring, the credentialing file is compiled into a verified profile for committee review. The verified profiles are then printed and duplicated for all committee members who physically meet and decide to grant or deny participation or affiliation. During this entire process, which can last as long as six months, the provider is often continuing to practice and submit claims, offering further incentive to fraudulent providers.
What is Electronic Credentialing?
Electronic credentialing involves several features which change the paradigm for how credentialing has been performed. These features include (1) a provider portal allowing electronic submission of provider information, (2) a centralized provider data repository, (3) automated electronic verification of provider information, (4) virtual committee functionality, and (5) integration of provider information to upstream and downstream systems. Additionally, not only does electronic credentialing improve efficiency and eliminate error, it lays the foundation for expanding the scope of what can be collected and processed efficiently such as quality information necessary for pay-for-performance programs, ongoing practice evaluation and other required skills assessments for the industry’s changing needs.
A Slow Transition
So why are these paper-based, manual processes still the norm when so much is changing? For one thing, paper-based processes are entrenched in the system and such old habits die hard. In addition, fear of job loss and authority, whether real or imagined, can slow down or even undermine efforts to change. There may even be mission-related bias against capturing more information on providers. Various types of healthcare organizations have viewed themselves as merely providing the space, equipment and support for providers to perform their services. Such healthcare organizations were advised not to dig too deeply into providers’ backgrounds by legal counsel seeking to protect them from liability. Not only is this position legally outdated, it steers an organization directly against the sweeping current of healthcare reform.
In other industries, “intellectual capital” is one of the most important assets of a business. It is a mission-critical function to identify, disseminate, and monitor the skills and knowledge of personnel. Yet the US healthcare industry, which features one of the most highly educated and skilled labor classes in the world, traditionally places virtually no value on the personnel information it collects beyond the avoidance of audit issues. How much could be accomplished if such information were not only efficiently collected and processed but expanded upon and made accessible to all in real time? Instead of marginalizing credentialing departments, industry leaders should bolster them with analysts and quality-focused managers while jettisoning the manual processes that are now obsolete.
Outsourcing: Today’s Real-Time Option
As organizations continue to focus further energies on preventing provider fraud, electronic credentialing will become the dominant credentialing process within the healthcare industry. Unfortunately, as of today, the vast majority of healthcare organizations perform the only type of credentialing they have capabilities for on their own: manual credentialing. Not only is this a massive duplication of effort on a national basis, but the inefficiency of the current methods emphasizes that credentialing is nowhere near the core competency of most healthcare institutions. Credentials Verification Organizations (CVOs) were formed to provide an outsourced alternative for struggling organizations. While many CVOs have the requisite subject matter knowledge, the vast majority are also still utilizing manual, paper-based processes that mimic the healthcare organizations. Cost reduction can only be achieved through lower labor costs. To see drastic improvement, healthcare organizations must find a CVO utilizing a shared Web-based platform with real-time credentialing functionality. This type of partner will provide an effective turnkey approach for achieving continuous credentialing and simultaneously centralizing provider data for enterprise-wide use.
Electronic Credentialing: Everyone Can Win
Imagine a world where credentials verification was completely electronic and continuous. The technology is already there, but the industry is largely unaware of its existence and its immediate applicability. In order to effectively deal with the growing number of patients and corresponding providers, organizations must have real-time knowledge of their providers to mitigate risk and ensure quality care. This means proactively identifying unqualified providers before harm or fraud can occur. Continuous electronic credentialing is a paradigm shift from the laborious credentialing methodologies of the 20th century to the real-time capabilities of the 21st. With this technological transformation, healthcare providers will spend a fraction of the time on credentialing, healthcare organizations will be proactively alerted to issues before they become liabilities, and they and their patients will be empowered with real-time knowledge that defines quality of care.
Matthew Haddad, J.D., is President and CEO of Medversant Technologies, LLC. Medversant is the nation’s leading provider of automated continuous credentialing and provider data management solutions. He is also a patent holder of Medversant’s AutoVerifi(tm) technology (US Patent No. 7,529,682). Mr. Haddad received a Bachelor of Sciences in Business Administration from the State University of New York at Albany and his law degree from Boston University. He maintains state bar licensure in New York, California and Massachusetts.