The Cost of Credentialing

September 9, 2008 at 3:24 pm 12 comments

The impact of healthcare credentialing registrations on vendors cannot be overlooked.   Some of the debate centers on the expense of unique health system-driven programs vs. a rep-level standardized program.   Nearly 500 hospitals have chosen Vendormate to manage their rep credentialing as well as business processes well beyond that.   With that sizable base, we analyzed the impact of these registrations to our vendor participants.   Here’s what we learned:

  •  Each Vendormate registration fee encompasses four hospitals on average.   That’s because the sizes of health systems selecting Vendormate range from one hospital to 41 hospitals.  

  • Even though nearly 500 hospitals have contracted with Vendormate, less than 1 in 10 reps register at more than one health system.   The few that do, only register at two. 

  • Typically, 2 individuals register as representatives of each vendor company with a Vendormate health system.  Because Vendormate charges higher or lower fees depending on the level of risk, credentialing, and monitoring performed, the average company registration fee is $163. One company fee covers all related reps, so divide that by 2 reps.   The resulting average registration cost per rep is $82.

    Ironically, if these same reps had registered with a community-based model, they would have paid more.  And the healthcare systems would still have to find a solution to managing their custom policies and their entity-level checks and records.  

    In the end, successful programs will be measured on the participation and cooperation between healthcare networks and vendors not on the cost.   So to encourage participation, Vendormate has been working directly with vendor companies to create custom programs ranging from prepaid volume discounts to full credential document management.     If you’d like to discuss a program for your registering company, contact us at

    Entry filed under: vendor compliance, vendor credentials, vendor management.

    “Publicly Available” Is Not the Same as “Free” Medical Insurance Company Pushing HCIR Credentialing

    12 Comments Add your own

    • 1. Ronald Shultz  |  October 7, 2008 at 3:12 pm

      The problem faced by small medical equipment snd suppies businesses is not credentialing. It is the inceasing number of credentialing companies and the lack of reciprocity. To say that a company has “nearly 500” hospital cusomers is not impressive when you service a single state that has over 300. National standards are completely acceptable but difficult to achieve. Reciprocity is but a distant dream hindered by self interest and the desire for profit.

      • 2. Ken Johnson  |  October 9, 2012 at 11:56 am

        Mr. Shultz could not have said it better. Many representaives jump through many hoops to meet the requirements of a major credentialing company, just to be blocked by up to 1/2 of their other accounts because of one or more other credentialing companies.

    • 3. Tom Kelly  |  October 24, 2008 at 10:12 pm

      Credentialing is a scam. Great idea to make some money for Vendormate, et al.

      I’ll gladly carry my credentials in a big folder in lieu of paying thousands of dollars to do business with your customers. And thousands more to RepTrax.

      Why not one fee per rep, to cover all VendorMate customers? How is risk determined? Something tells me there aren’t alot of $25 memberships.

      There is something very wrong with a hospital telling me I must give personal information to a third party, whose only interest is profit. On top of that, I am to pay them!
      If I were an identity thief, I would target the reps in Vendormate and Reptrax.

    • 4. Dave Penn  |  November 19, 2008 at 8:29 pm

      I agree with Tom Kelly on this being a scam. Where are the $25 memberships? Why do I have to pay $250 per year for each hospital that uses Vendormate. So far I have 2 in my territory which will probably be $250 each.
      I asked for my fees to be reviewed before the renewal date. I was told that my $250 fee covered credentialing. I asked what credentialing was done and was not given an answer. Needless to say, they ran my card.
      I pay Reptrax $59 per year and that covers my hospitals in 2 states. You need to look at their model.

    • 5. B Garcia  |  June 5, 2010 at 12:08 am

      RepTraxx is a fraud. they now are seeking to “credential” Clinical personel in their site. However they have no credentials themselves! This fly by night companies are not recognized as far as I know by any oficial healthcare organization (JCAHO,the State or federal agencies, Better Business Bureau even!).
      So who polices this rent a cop that provides nothing but a PC and a printer at a hospital with no clinical concern to ensure good care?
      There needs to be a real agency that controls credentials of credited clinical providers and not this “money pit “call Reptraxx, and we have it, it is called JCAHO.

    • 6. mike p  |  August 17, 2010 at 3:15 pm

      I am a service vendor and would like to thank the credential companies. We can now charge the hospitals and clinics that are covered by the companies the fees charged to us by them plus internal processing for us having to get the required information.

      For any healthcare facility that thinks this is going to be a free service to them , pull your head out of the sand. These companies are a scam and this service can be done by any facility that can make and keep files. Generate a vendor badge and give it to all vendors. Have them scan a door reader on the way in and the way out, tracking done easy.

    • 7. Jeff N  |  September 21, 2010 at 1:09 pm

      I own a small business that sells products to hospitals. Can you imagine what they (the hospitals) would say if I told them that I hired an outside company to keep track of all my customers and that they need pay me $ 163. to register as a customer so that they can have the privilege of buying my products!

      I like your idea, Mike. A simple computer program and a bar code reader would be able to handle this at no cost to the vendor.

    • 8. Mark Weiss, P.E.  |  September 17, 2011 at 2:33 am

      I was working as a videographer for a local hospital on a fill in basis on short notice. I’d already done the work, and then they sprung this Vendormate thing on me, basically threatening that I would not see anymore work from them if I didn’t sign up and pay for my own background check. I did, and guess what? They stopped using me entirely. I had been working for them about once a week, and then, bam.. Vendormate registration and suddenly no more work.
      I feel ripped off, cheated by this system. The cost of due diligence should be on the hospital, not on the contractor who is struggling to earn an honest living.

    • 9. Portable Air Conditioners  |  August 14, 2013 at 6:49 pm

      This is just another comment from a vendor who feels ripped off by this system. After careful consideration we have decided not to pay this arbitrary and unnecessary fee, and informed the hospital in question that even though we could have saved them tens of thousands of dollars yearly, we refuse to be extorted for pocket change at every turn. Turning private information over to a unknown third party increases the likelihood of a raft of issues, from identity theft to fraud, and it feels like a scam to boot. There are other hospitals in the area who do not scam their vendors, and they will be benefiting from our great service and industry leading prices, while Vendormate-affiliated institutions will not.

    • 10. chat online  |  December 31, 2013 at 3:33 am

      This one doesn’t apply when conversing to a possible date on line
      but it really could be preferable to get these issues fixed before meeting in the
      flesh. This can be one of the most frustrating things and can turn off
      your partner as this is an indirect way of telling your partner that
      you don’t respect their feelings and time and that you have better things to take care of.
      The heavier your emotions the easier it is to be sucked
      into something “heavy” and negative.

    • 11. Dave  |  April 22, 2014 at 7:58 pm

      I contacted VendorMate. Said I would have a background check done for $250.00 and can then go in to the hospitals to do business with them. In Massachuseets they claim they are signed up with many hospitals. NO OTHER HOSPITAL I work with DEMANDS this. I told vendormate I do not go into the hospital and only work on the phone with them. They were confused. I told them I have been doing business with this hospital since 1986. They said I have to pay anyway. Initially they said to pay a small fee of $25/year and I can work with the hospital and do not need background checks. If no background checks, why sign up with VendorMate. This is Scam.

    • 12. Tim  |  August 15, 2016 at 7:00 pm

      What I learned about Vendormate from Vendormate.

      A hospital will only do business with you if you are registered in the Vendormate system. Each hospital assesses “risk” based on a number of arbitrary factors that they set and charge a fee to the vendor based on that risk. The fee ranges from $25 to $250.
      I have one customer that purchases a software product that I sell. This customer pays a yearly maintenance contract that costs about $250/year. Vendormate charges me $25 for the privelege of continuing to do business with that one hospital.
      Another hospital wants to do busines with us, but they assess a high risk to our company and a yearly fee of $250. There is no rhyme or reason as to why the fee is so high. Obviously, the $250 year charge negates our $250 contract.
      Basically, I won’t do business with them because it is a zero sum.
      Who’s fault is all of this? The hospital or Vendormate? It’s a bit of both. Just waiting out the demise of Vendormate or the unlikely change to hospital policies.


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