Four Models for Managing Vendor Credentialing

April 19, 2012 at 2:49 pm 6 comments

In our work with healthcare vendors and suppliers across the U.S., we see four models that are used to manage vendor credentialing. The approach chosen depends on the size of the company and number of reps, whether or not credentialing is viewed as a corporate function, resources and management style.

  • Rep managed:  Reps are left to figure out and handle credentialing requirements  on their own.  The employer tells the reps that meeting these requirements is their responsibility.  This is common in small organizations, but some of the largest healthcare vendors follow this practice as well. This can be a challenge for many reps because reps are typically results, not process, oriented.  Even so, we estimate 60% of vendor companies take this approach.
  • Hybrid: In this case, there’s some level of corporate support to help the reps, but the reps are still on their own for meeting some requirements.  Typically the corporate support is for company documents and payment. The reps are held accountable for managing any training or immunization requirements.  Many companies use this model so they are sure that their brand and overall customer relationship is managed without the complexity of addressing each individual reps status.  Some 25% of the vendor companies go this route.
  • Fully managed:  A specific corporate staff member has oversight and day-to-day responsibility for ensuring reps meet any credentialing requirements appropriately.  Reps tap this resource for official company documents, for company guidelines about which policies are appropriate and which are not, and for assistance in finding approved resources for training, etc.  This results in higher numbers of reps fully compliant with their customers’ requirements, and the company able to centrally manage moves, adds, changes, and deletes to their rep staff and territories.  Current estimates are that 1 in 10 companies adopt the fully managed model, but the number is growing.
  • Outsourced:  A third party, like Vendormate, is contracted to ensure participation and compliance. The supplier may outsource all of credentialing or parts of it.  Companies adopt this to ensure high levels of compliance without the expense and complexity of building credentialing expertise in house.  As a relatively new option, just 5% of the vendors have outsourced their rep credentialing managing.

In our experience, the suppliers who have some element of a managed function – that is some oversight of the reps’ participation and compliance status – are the suppliers who have the least trouble with credentialing.  They’re ahead of the game – with a great percentage of reps fully compliant and fewer customer concerns.

Guest post by Jean Hodges, Vendormate

Entry filed under: vendor credentialing, vendor credentials, vendor management. Tags: , , .

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6 Comments Add your own

  • 1. Deanna Sue Spittler  |  June 22, 2012 at 3:41 pm

    I am scheduled to begin a HOSPIRA repair project in Port Angeles, Wa. on July 9th and have been told I will need Vendormate credentialing, I presently have worked two assignments requiring REPTRAX and have completed their needs, but this will be my first Vendormate. Please advise my needed steps as soon as you are able, please. I actually am leaving for an assignment in Texas on Monday, 6/25 and will not be back until 7/6 and then will need to leave immediately for the Washington assignment. Thank you so much. Ms. Deanna Spittler

    • 2. Chet Mody  |  June 26, 2012 at 2:20 pm

      We are a catalog company. we have no sales rep. All orders done via Phone or fax. we do not make any in house calls or visit any sites. does Vendormate applies to our company.

      • 3. vendorcompliance  |  June 26, 2012 at 2:28 pm

        Vendor credentialing does apply. Hospitals have to ensure that they are working with valid business partners as a good business practice (checking financials, etc.), that the suppliers aren’t on any sanction lists, and if patient data is involved, HIPAA compliant procedures are in place. That being said, the individual requirements for your representatives, such as vaccinations, should be minimal or not apply. Each hospital makes its own decisions about how to handle, so you may want to touch base with your hospital contact for any requirements.

      • 4. Chet Midy  |  June 26, 2012 at 2:43 pm

        As I mentioned earlier we are a catalog company
        There is no way we can afford to pay for individual site
        We have no sales rep
        We do not visit any sites
        All sales done via phone
        We sell to 500+ accounts
        What is the yearly fee

      • 5. vendorcompliance  |  June 26, 2012 at 6:56 pm

        Chet. I’ll have one of our account managers contact you and see what we can do for you with a corporate plan.

  • 6. vendorcompliance  |  June 22, 2012 at 4:03 pm

    You can register for your customer’s vendor credentialing program at Choose the New User side. Search for your customer by name or location. Click “go” and start the registration.


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