What happens if a provider is not credentialed?

Asked by: Moses Douglas  |  Last update: December 2, 2025
Score: 4.9/5 (63 votes)

Financially, services provided by non-credentialed physicians may not be eligible for reimbursement by insurance companies, leading to significant revenue loss. Furthermore, the reputation of both the physician and the healthcare practice can be damaged, undermining patient trust and professional reputation.

What does it mean when a provider is not credentialed?

We use this term to mean any clinician (physician or non-physician practitioner [NPP] such as a nurse practitioner or physician's assistant) who has not had his/her credentials verified and approved by a payor and is essentially, not a 'participating provider.

Do all providers need to be credentialed?

Generally speaking, anyone in your practice who is a medical provider must be credentialed. This includes physician specializations as well as nurse practitioners, physician assistants, respiratory therapists, and nuclear medicine technologists.

Can a non-credentialed provider bill under another provider?

Although practices may be able to bill non-credentialed physician's services with a credentialed physician's NPI under Medicare's “incident to” rules, commercial payers may not allow “incident to” billing. Similarly, commercial payers may not allow locum tenens or reciprocal billing arrangements.

What happens if credentialing is denied?

Because of credentialing denials, providers may lose the opportunity to treat patients covered by the denied insurance network, potentially losing revenue and patient trust. Organizations may also suffer financial setbacks due to these denials, impacting their revenue cycle management and overall financial stability.

Common Confusions With Credentialing

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What are red flags in credentialing?

Examples of red flags include the following: Frequent practice changes or moves. Unexplained time gaps in work history. References that raise issues.

Can you have hospital privileges without being credentialed?

You can get credentialed without having privileges. But you cannot obtain privileges without going through the credentialing process first. All physicians need credentialing in order to practice. Privileges, on the other hand, permit physicians to treat and perform certain procedures on patients.

Can providers see patients before payer credentialing is done?

Understanding which payers are most common in your geography is important so providers can get enrolled with as many panels as necessary. It is strongly advised that providers do not to see patients before the completion of this step as reimbursement is not retroactive and doing so could lead to lost revenue.

What is the denial code for provider not credentialed?

Denial code B7 means the provider was not certified/eligible to be paid for a specific procedure/service on a certain date.

What if insurance claims are being denied because the provider is not a contracted provider?

Many health insurance companies will flat out refuse coverage for medical treatment provided by physicians outside of their established network. If your insurance claim was denied on the grounds that your care provider was outside the network, you might have grounds for appeal.

How long does it take to get credentialed with insurance?

It's always a good idea to assume the process will take anywhere from 90 – 120 days for each plan application that you submit. It is important to note that you will not receive in-network reimbursement from an insurance company until you have completed credentialing and contracting.

Why is credentialing so important?

By rigorously assessing and verifying a medical professional's qualifications and practice history, credentialing instills trust among patients, reduces potential liabilities for healthcare organizations, and underscores the commitment of the medical community to uphold the highest standards of competence and ethics.

What is checked during a credentialing process?

Work History and Reference Checks.

The credentialing process also involves verifying the work history of the provider, including previous employment positions, job responsibilities, and professional references. This helps assess the provider's experience and reputation within the healthcare community.

What is negligent credentialing?

Negligent credentialing "should be reserved for cases in which a hospital unreasonably exposed its patients to harm by granting staff privileges to a physician with a demonstrable history of questionable conduct or inade- quate training." Id.

Can you bill Medicare if you are not credentialed?

To bill Medicare, permanent full-time or part-time providers must be credentialed.

How often does provider re credentialing occur?

It ensures providers continue to meet key standards for professional competence, conduct, and delivery of high-quality care. Recredentialing generally occurs every 1-3 years after the initial credentialing process.

What does disapproved for provider mean?

This means that either the provider truly is not credentialed with the insurance company or insurance company has processed the claim incorrectly.

What is a RVU and why is it important?

In medical billing, RVU refers to Relative Value Units—a set of standard values assigned by Medicare to determine the cost of services. With the help of RVU, it becomes easier to compensate doctors based on their productivity.

What does missing incomplete invalid credentialing data mean?

This means that the information required to verify the healthcare provider's qualifications or credentials is either not provided, incomplete, or does not meet the necessary standards or requirements.

What does "provider not credentialed" mean?

The most common situation, and I believe the one to which you are referring in your question, is when a new or established provider hasn't been credentialed by an insurance company. This happens when a provider is hired right out of residency or from another practice (in- or out-of-state).

How long does it take to get credentialed with Medicare?

How long does it take to enroll with Medicare? Medicare typically completes enrollment applications in 60 – 90 days. This varies widely by intermediary (by state).

Can you allow a provider to work prior to the credentialing process being completed?

No healthcare worker should be permitted to work before completing the credentialing process. On the other hand, healthcare institutions should promptly perform initial credentialing so that healthcare workers are not left in limbo for months. The governing board should approve the final credentialing.

How long does it take to get credentialed at a hospital?

The general timeframe for healthcare providers to complete credentialing is between 90 to 120 days. However, this is an average estimate. Some payors may complete the process quicker, while others might take longer, especially for certain specialties.

Can a hospital deny you access?

Sections 482.13(h), 483.10(f)(4), and 485.614(h), hospitals, critical access hospitals, and long term care facilities respectively may limit access to their facilities so long as: the restrictions are clinically necessary or otherwise reasonable (for example, limiting visitation hours or the number of visitors at a ...

What is the highest position at a hospital?

The Chief Executive Officer (CEO) is the highest-level management position in a hospital or hospital system. Hospital CEO's must possess the qualifications and skills to manage and direct the complexities of a modern patient care facility.