Credentialing and Contracting

About Credentialing and Contracting

Credentialing verifies a healthcare provider’s qualifications (license, education, etc.), while contracting establishes the financial and operational agreement with an insurer for reimbursement, with contracting typically following successful credentialing. Credentialing confirms a provider is competent and safe to treat patients, whereas contracting sets the specific rates, terms, and conditions for payment from an insurance company, allowing providers to get paid for services. 

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Credentialing

What it is

The verification process by an insurer to confirm a provider's legitimacy, competency, and adherence to standards.

Focus

The individual provider's qualifications (education, licensure, certifications, background).

Outcome

Approval to be considered for network participation, but not yet guaranteed payment.

Clear Fair Terms

Contracting

What it is

Negotiating and signing a formal agreement (contract) with an insurance payer.

Focus

The business relationship, including reimbursement rates, fee schedules, and billing processes.

Outcome

Allows credentialed providers to bill the insurer for services at agreed-upon rates.