Starting a practice

Started by caliking87
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caliking87

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I have read through many past posts on here about starting a practice. The most helpful of which was Feli’s detailed cost breakdown.
I got into podiatry for the private practice aspect, office visits and simple surgeries (1st ray, soft tissue) I’ve never liked the hospital setting. My main concerns with opening are closed insurance panels. The area I’d hope to open is very geriatric with roughly 30% of insured people insured through Medicare. Everyone always says private practice is dead, I hear about reimbursement cuts all the time. Is solo owner private practice doing routine podiatry still viable?
 
Yes. You won't be making a ton of money but if you build it up you can be on autopilot making 200-300 working 9-5. Thats a pretty good quality of life.

If thats something you can accept then yes its "viable". Join an IPA to get on insurances. Market a lot. Expect it to take 1-3 yrs for a full schedule depending on location/demand. Nothing however can make up for being a good doctor. If you suck..well good luck.
 
You could also be the guys down the street from me billing 11305 to circumvent non covered routine footcare and cutting on people who shouldn't be cut on.

That way they end up coming to me for 2nd opinions and FMLA paperwork and then disappear.

Business management.
 
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Unfortunately my employees continue to ask for cost of living increases and my supplies/rent continue to increase as well.
 
Hello everyone and happy holidays! I have a question: If you work at a podiatry practice for several months or a year and then leave to start your own practice, can you transfer the existing PPO/HMO contracts to your new practice, or would you need to apply and credential with each insurance from scratch?
Thank you so much!
 
Hello everyone and happy holidays! I have a question: If you work at a podiatry practice for several months or a year and then leave to start your own practice, can you transfer the existing PPO/HMO contracts to your new practice, or would you need to apply and credential with each insurance from scratch?
Thank you so much!
From the couple of people I know who did, its from scratch. Now you're doing it as you with your own practice, not as an auto part of your prior practice
 
Hello everyone and happy holidays! I have a question: If you work at a podiatry practice for several months or a year and then leave to start your own practice, can you transfer the existing PPO/HMO contracts to your new practice, or would you need to apply and credential with each insurance from scratch?
Thank you so much!
If they were using 3rd party credentialing, soon as that contract expires you are responsible for getting back on with those insurances yourself.
Certain insurances don't work with any credentialing companies and rely on the individual to get onboarded (looking at you UHC).

Its like pulling teeth just trying to get on their panel because all of their "Contact Us" lines are automated bots. Almost impossible to reach a real person unless its collections/reimbursements related.
 
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If they were using 3rd party credentialing, soon as that contract expires you are responsible for getting back on with those insurances yourself.
Certain insurances don't work with any credentialing companies and rely on the individual to get onboarded (looking at you UHC).

Its like pulling teeth just trying to get on their panel because all of their "Contact Us" lines are automated bots. Almost impossible tor each a real person unless its collections/reimbursements related.
How do you even contact them. Do you look up the website for each individual insurance and find a credentialing contact number?
 
How do you even contact them. Do you look up the website for each individual insurance and find a credentialing contact number?
You can do that or go through a 3rd party credentialer like TIOPA, SPA, etc.
They basically charge you a fee to negotiate all the credentialling for you.

So you fill out the basic CAQH form, send them everything.
Have malpractice cert, hospital privileges, board cert, DEA, license ready

They'll be like hey here's the list of insurances we got you onboarded with, here's when the next re-up is due.
Some will also send you updates on changes within the insurances themselves like hey btw this guy is gonna cut your E&M by 3% next month etc.
 
You can do that or go through a 3rd party credentialer like TIOPA, SPA, etc.
They basically charge you a fee to negotiate all the credentialling for you.

So you fill out the basic CAQH form, send them everything.
Have malpractice cert, hospital privileges, board cert, DEA, license ready

They'll be like hey here's the list of insurances we got you onboarded with, here's when the next re-up is due.
Some will also send you updates on changes within the insurances themselves like hey btw this guy is gonna cut your E&M by 3% next month etc.
Do these 3rd party IPA's ever have "closed panels"?
 
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Geez.
So someone that's an awesome podiatrist can start a ground up practice and legitimately be screwed due to insurance panels themselves being closed, AND the 3rd party "backups" like the IPA's also being closed?

So if an established practice wants to hire someone, they have to call whoever their insurance panel company or group is and ask if there's room to add on an additional podiatrist? And if there's not any room, the office is just screwed and can't hire anyone (for insured patients)?

Is it a non-issue in-practice basically everywhere in the country? Because I've definitely seen and heard of private practices in extremely saturated markets hiring people on and they get on board to insurances just fine.
 
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Thanks everyone. The insurance/credentialing side is the only thing holding me back from opening my own practice, so any advice or experience you shared would really mean a lot. So basically, working for another podiatrist wouldn't help for credentialing ?
 
No, once you leave, you have to get recredentialed under your new entity. Joining a good IPA can help because you could possibly benefit from their payor rates as well as getting added to all their insurance panels. Joining an IPA is also a way to get around closed panels from certain insurance companies.
 
No, once you leave, you have to get recredentialed under your new entity. Joining a good IPA can help because you could possibly benefit from their payor rates as well as getting added to all their insurance panels. Joining an IPA is also a way to get around closed panels from certain insurance companies.
The person above said that IPA's could also be closed when I asked. So closed insurance panels, and no room on the IPA for us, so no in-network patients?
Do these 3rd party IPA's ever have "closed panels"?
"Yes."

Am I understanding that correctly?

Also, why aren't these IPA's the "go to" way to be able to get paid for seeing patients? Seems like its easier, quicker, more money reimbursed, and not having to worry about "closed panels" (whatever closed panels even means; I am just assuming it means the insurance companies deny to make you in-network, which would just cost the insurance company MORE money if the patients still come to see me as OON wouldn't it lol).
 
You can do that or go through a 3rd party credentialer like TIOPA, SPA, etc.
They basically charge you a fee to negotiate all the credentialling for you.

So you fill out the basic CAQH form, send them everything.
Have malpractice cert, hospital privileges, board cert, DEA, license ready

They'll be like hey here's the list of insurances we got you onboarded with, here's when the next re-up is due.
Some will also send you updates on changes within the insurances themselves like hey btw this guy is gonna cut your E&M by 3% next month etc.
Are hospital privileges specifically a requirement?
 
This is particular to my situation, but I def have to remain on staff at my hospital in order to participate in insurance plans. I know of several doctors who moved their practice out of state specifically to avoid being on staff at hospitals they want nothing to do with.
 
This is particular to my situation, but I def have to remain on staff at my hospital in order to participate in insurance plans. I know of several doctors who moved their practice out of state specifically to avoid being on staff at hospitals they want nothing to do with.
That sounds horrible
 
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I have read through many past posts on here about starting a practice. The most helpful of which was Feli’s detailed cost breakdown.
I got into podiatry for the private practice aspect, office visits and simple surgeries (1st ray, soft tissue) I’ve never liked the hospital setting. My main concerns with opening are closed insurance panels. The area I’d hope to open is very geriatric with roughly 30% of insured people insured through Medicare. Everyone always says private practice is dead, I hear about reimbursement cuts all the time. Is solo owner private practice doing routine podiatry still viable?
When I started my solo practice, I called the main carriers (uhc, bcbs, aetna) and asked them all for a contract to be in network. They all told me no - their panels are closed. So I went original medicare only out of necessity. I never knew (still don't know) what an IPA is or how to use them, so I just stayed with original medicare only. That was years ago, and though I've probably made less than most who take insurance, I'm honestly glad they told me no as it has kept my practice operations much simpler.
 
When I started my solo practice, I called the main carriers (uhc, bcbs, aetna) and asked them all for a contract to be in network. They all told me no - their panels are closed. So I went original medicare only out of necessity. I never knew (still don't know) what an IPA is or how to use them, so I just stayed with original medicare only. That was years ago, and though I've probably made less than most who take insurance, I'm honestly glad they told me no as it has kept my practice operations much simpler.
How is your practice running now ? Thanks
 
How is your practice running now ? Thanks
Going good - after about 13 medicare and dme audits in 18 months, I got tired of the paperwork and dropped medicare and am self pay only. I feel like working under the insurance model creates a disadvantage for the patient for low cost visits. The cost of collecting the money from the insurance company now sometimes costs more than the reimbursement itself, so the level of care ultimately suffers. This is particularly true as inflation increases and reimbursement doesn't keep up.

Consider a 99213. To collect $90 you have to 1. Obtain medicare number. 2. Query to be sure it's active. 3. Query to see if there is a deductible/copay due. 4. Obtain the supplemental insurance information and see if it covers the deductible. 5. Arrange collection of the deductible/copay if applicable. 6. If deductible is not paid, send 2 letters to patient in attempt to collect deductible/copay. 7. Chart a perfect note so it survives future audit. 8. File the claim with medicare. 9. File the claim with the supplemental carrier if it didn't automatically cross over. 10. Play the game with the secondary carrier if they act like you never sent the claim. 11. Then if they audit you, you have to assemble the chart and submit it.

That's a lot of work to collect the $90, not to mention performing the service itself. If you put the energy/resources of #1 - #11 above towards the patient visit, it generally will result in a competitive advantage compared to your peers regarding the service provided. The big "if" is will the patient will bypass insurance, that's the hard part.
 
Going good - after about 13 medicare and dme audits in 18 months, I got tired of the paperwork and dropped medicare and am self pay only. I feel like working under the insurance model creates a disadvantage for the patient for low cost visits. The cost of collecting the money from the insurance company now sometimes costs more than the reimbursement itself, so the level of care ultimately suffers. This is particularly true as inflation increases and reimbursement doesn't keep up.

That's a lot of work to collect the $90, not to mention performing the service itself. If you put the energy/resources of #1 - #11 above towards the patient visit, it generally will result in a competitive advantage compared to your peers regarding the service provided. The big "if" is will the patient will bypass insurance, that's the hard part.

As someone that wants to open a practice within the next 1-2 years, this is depressing and discouraging as heck lol.
Are there really certain payers where it cost more to get reimbursed than the amount you're actually getting reimbursed?

Instability/poor ROI being an employee anywhere, difficult to make good money being an owner apparently lol, all desirable places to live oversaturated, seven years of post college life, 200 to 500 K of student loans (yes, I had classmates <multiple> that have half-a-million in student loans for this crap due to undergrad loans), reimbursements going down instead of at the very least, keeping up with inflation.

I should just leave the US and open a practice in Mexico or Brazil or Turkey or Singapore or UAE lol
 
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As someone that wants to open a practice within the next 1-2 years, this is depressing and discouraging as heck lol.
Are there really certain payers where it cost more to get reimbursed than the amount you're actually getting reimbursed?
The way around this is that you need staff to verify insurance eligibilities. If you're starting from the ground level, you can do it yourself but pretty soon there are better uses for your time. This is why it was such an upheaval a year and a half ago when change healthcare underwent its cyber attack, because they were the insurance clearing house that we currently no longer use who handled all of this garbage, and we basically had to go 3 months with zero cashflow.
 
The way around this is that you need staff to verify insurance eligibilities. If you're starting from the ground level, you can do it yourself but pretty soon there are better uses for your time. This is why it was such an upheaval a year and a half ago when change healthcare underwent its cyber attack, because they were the insurance clearing house that we currently no longer use who handled all of this garbage, and we basically had to go 3 months with zero cashflow.

Gotcha. Practically speaking, does that mean I have to call each insurance company, ask them if they cover a heel injection for example for all their insured patrons in my area, and only then I should schedule said patient, or perform the injection? That seems like a dumb system. If someone wants to call and get scheduled to be seen, and they are insured, that should be the end of it. lol

When I start, I am paying someone (like a consultant or one of those companies that handles all the billing, appealing, RCM, etc.) to handle that side of it. Maybe I'll do it myself or bring it in house after a few years, but I don't mind spending a few % per transaction for stable cashflow and accurate, ethical billing.

Maybe even just pay for the whole package on EMR's where the billing and RCM is handled through the EMR provider. Is that typically cost-prohibitive? Like why would someone choose NOT to use the billing features of their EMR's? Cause to me, it seems like it would streamline everything and be less of a headache for everyone lol.
 
Because when you get paid pennies on the dollar and you are not that busy you will say to yourself every dollar counts and you have all the time so you're just going to do it yourself and not pay somebody. You're not made out of money


Edit - every penny counts
 
My EHR does automated insurance verifications. I'm sure I'm paying for the feature. Over the years we've had a few people slip through and the number one rule is to reverify insurance the week of outpatient surgery.

Other than custom orthotics that require pre-certification and HMO visits that require referrals I see next to nothing denied in clinic other than fraudulent bullcrap ie. the league of insurance douchebags - UHC, Aetna, and Humana who'll deny anything against the wall to see what sticks.

Fun fact. United Medicare Advantage has denied NOTHING since I went out of network. Turns out that when you don't have a contract with them they can't sodomize you.

I do in clinic 5th digit resection arthroplasties, flexors, amputations, hardware removals, every sort of injection, etc and none have ever been denied as requiring an authorization across a diversity of insurances. We occasionally ask for authorization on irregular insurances or potential higher reimbursing insurances but its never been an issue.
 
Below are 2 links to recent OIG podiatrists findings.

When I told my patients I'm going off Medicare due to the coding/billing/audit hassles, many of them said "just hire it out." While you can hire out some things, I wounldn't hire out proper documentation for Medicare. See below links for recent findings from medicare audits for routine foot care and e&m's with 25 mods. They hit me with an audit for e&m's with 25 mod for about 30 charts. They also hit me with an audit for routine foot care. I had prepared for it, with photos etc of pathology because I knew they targeted those notes. Thankfully I passed every chart, but if I had not passed, they could have extrapolated the 25 mod audit which could have cost me dearly and turned into big dollar amounts.

Here are the links, hopefully I posted them correctly:

Podiatrists’ Claims for Routine Foot Care Services Did Not Comply With Medicare Requirements

 
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Is it worth buying a cheap part time practice (50-70k) just to have something established and already be on all insurance panels? Especially if it’s a location I want to be in.
About 20-25 patients a week

Thanks
 
Is it worth buying a cheap part time practice (50-70k) just to have something established and already be on all insurance panels? Especially if it’s a location I want to be in.
About 20-25 patients a week

Thanks

Being on insurance panels takes time no matter what. Buying a practice is like buying a house, the valuation depends on many many things. Knowing nothing of the specifics, I'm inclined to say yes it's worth it.
 
Is it worth buying a cheap part time practice (50-70k) just to have something established and already be on all insurance panels? Especially if it’s a location I want to be in.
About 20-25 patients a week

Thanks
Probably, depending on balance sheet, equipment, etc. Be sure there is nothing lurking behind the scenes that may come back to bite you, like a future medicare or other audit that the practice may be responsible for, in case the other guy didn't chart well. Or an upaid bill that the practice is responsible for. I don't know the legality, if you would be liable or not.
 
has anyone ever been denied getting on panels in an area that is not super saturated? using conservative numbers i'm probably opening in an area with a 1/15,000 ratio as far as podiatrists to population. I know the 1/15,000 isn't great but If i extend out to the nearby metro area maybe 1/30,000-40,000 or so. A lot of my patients will come from the metro area. my research shows me about 15-20% of the city is on medicare. 65% or so on commercial insurance.

My biggest concern with signing a 5 year commercial lease is i get in and realize BCBS or someone won't accept me and the practice is doomed from the beginning. however you can't just get this info easily before starting the credentialing process. so it's a bit of a gamble. I doubt very much a IPA exists in my area.

my hunch is people getting denied on panels are usually in large urban areas (philly, NYC) that are saturated with podiatrists. but i'm unsure. any help would be appreciated.

I’ve heard nightmare stories about this but not sure if it’s something I need to exactly worry about.

thanks.
 
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I have pretty limited experience with them, but I believe IPAs are done on a state-wide basis. So if your state has an IPA you could look into them. Also IPAs are not just limited to podiatrists, so you may be surprised and that there are some but consist mostly of real doctors (/s), not podiatrists. Some insurances can be more local though, so an IPA may not be able to help you with those insurance panels if they are based out of another region within the state.
 
I have pretty limited experience with them, but I believe IPAs are done on a state-wide basis. So if your state has an IPA you could look into them. Also IPAs are not just limited to podiatrists, so you may be surprised and that there are some but consist mostly of real doctors (/s), not podiatrists. Some insurances can be more local though, so an IPA may not be able to help you with those insurance panels if they are based out of another region within the state.
how do you even find out about IPAs? and aren't their fees associated with them?

i'm going to reach out to a credentialing company for more info. this is too important to **** up myself
 
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My yearly practice IPA fee is $600. They charged us $1200 when I joined a few years ago. They did not make me send a new "joining" fee even though I'm starting a new practice and hilariously my $600 fee that was paid by my current practice carries me till next year and works for my new practice 🤣

For $600 instead of contacting Cigna, and a ton of small insurances instead I got cc-ed on an email where my IPA credentialer contacted all of those insurances and said "add Heybrother to the IPA TIN on X/X date". They send BCBS something through Availity that adds me though it isn't as hilarious as just a "add this guy email".

Gotta put in the work to find an IPA. My guess is in small states they are statewide. Texas is unfortunately large enough that some insurance companies have regional contracting.
 
My yearly practice IPA fee is $600. They charged us $1200 when I joined a few years ago. They did not make me send a new "joining" fee even though I'm starting a new practice and hilariously my $600 fee that was paid by my current practice carries me till next year and works for my new practice 🤣

For $600 instead of contacting Cigna, and a ton of small insurances instead I got cc-ed on an email where my IPA credentialer contacted all of those insurances and said "add Heybrother to the IPA TIN on X/X date". They send BCBS something through Availity that adds me though it isn't as hilarious as just a "add this guy email".

Gotta put in the work to find an IPA. My guess is in small states they are statewide. Texas is unfortunately large enough that some insurance companies have regional contracting.
I’m assuming credentialing companies would know about open IPAs in the state/area

Might be a good backup option or maybe even the better option.
 
I’m assuming credentialing companies would know about open IPAs in the state/area

Might be a good backup option or maybe even the better option.
Why would a credentialing company know about IPAs?

An IPA is as far as I'm aware a physician lead organization - the board of mine is all doctors - that exists for the benefit of its members.

A credentialing company is a for profit enterprise that exists to help you navigate the garbage bureaucratic system that is American healthcare. For providing you a service that you could have performed on your own they charge you. Yes, they are presumably better than you are at it.

I could be wrong but its like comparing Vanguard and some active management company. They both technically provide a similar service, but the cost difference is likely substantial.
 
A credentialing company telling you about a IPA essentially undercuts their business too I would think. Seems like IPA’s are mainly just like word of mouth or invite only. Kind of like a fraternity.. Medicine is crazy when you learn all this nonsense exists but I understand the benefits of IPAs
 
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how do you even find out about IPAs? and aren't their fees associated with them?

i'm going to reach out to a credentialing company for more info. this is too important to **** up myself
Search Google. Maybe ask other doctors in the area if you can't find anything. IPAs charge a flat rate for every insurance; credentialing services will charge you per insurance panel and they get pricey. Everyone's situation is different, but when I was looking at things I gathered that IPAs were a better bang for your buck and you can also potentially get a better fee schedule due to group size. I am currently working on buying into a group, so I didn't end up needing to go the IPA route. Good info to know for the future though, because you never know.
 
Please learn the credentialling your self.
1. Is there any IPA in the state? You can just check with the state. These are registered organizations.
2. Some insurances even with IPA may still want a direct contract with the insurance.
3. Apply to insurances directly for anything the IPA does not include. Shouldn't take more than a week to speak with all the IPA in the state if they dont suck.
4. DO NOT USE a credentialing service. They all suck. You can get on most insurances your self in under 60 days ready to see pts. Even an IPA or these credentialing companies say 90-120 days. Thats total bs because they are lazy and slow.
5. By doing it your self you learn how the system works and how not to get screwed. You see your actual contracts. You see your logins and portals and everything is under your name, not some third party you have no control over.
6. Even after getting a contract you have to get PAID. Whos going to set that up? You still need portal access and accounts. Don't trust a 3rd party for that.
 
Please learn the credentialling your self.
1. Is there any IPA in the state? You can just check with the state. These are registered organizations.
2. Some insurances even with IPA may still want a direct contract with the insurance.
3. Apply to insurances directly for anything the IPA does not include. Shouldn't take more than a week to speak with all the IPA in the state if they dont suck.
4. DO NOT USE a credentialing service. They all suck. You can get on most insurances your self in under 60 days ready to see pts. Even an IPA or these credentialing companies say 90-120 days. Thats total bs because they are lazy and slow.
5. By doing it your self you learn how the system works and how not to get screwed. You see your actual contracts. You see your logins and portals and everything is under your name, not some third party you have no control over.
6. Even after getting a contract you have to get PAID. Whos going to set that up? You still need portal access and accounts. Don't trust a 3rd party for that.
Great post.

Another reason to do it yourself is that a lot of the "credentialing" has to be kept up to date by you. For example - you have to re-attest your own CAQH and maintain your malpracftice there. Every once in awhile I'm asked to provide my TSCA (Texas). Do them right by yourself the first time, keep them. and they won't seem like a big deal in the future.

The other day my current practice needed something fixed related to Medicare. My partner told me "he doesn't have a PECOS account". Wrong. Just clueless about his own practice

I asked him who our Radiation Safety Officer is. Didn't know either. Becoming progressively happier I'm leaving every day.

I tried to update my DEA account the other day. Turns out the office manager had transferred the email to herself. Had to go in to the office and fix it.

Need to own the things related to yourself.

EDIT: Horror story from Trizetto rep. They claimed they knew of a doctor who wasn't collecting anything. Their 3rd party biller had changed their ETF to a non-practice account. Terrifying.
 
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There are many ways to do insurance cred.
However you do it, you need the hard override on the logins and passwords (in case you ever changed billing or cred services or office mgr) and should check your CAQH occasionally.

I agree that credentialing services are more for big groups or supergroups with tons of associates coming/going.
They generally want more hours, tasks... which small office doesn't really have. It won't be their priority for a small/solo office.
Same with in-house billing... takes a good amount of claims to keep even one full-time person busy (and it puts all eggs in that basket).

The best ways for credential are then to DIY or have your biller service do it. Office manager might be an option, depending on competence.
None of you will enjoy it (cred is terrible work imo), but the billing service will likely be best at it as they've likely done it many times.
Docs could do it, but you are frankly worth way more per hour doing other things than any amount the biller service will charge.
But either way, any of those should have the same interest: more collections for you/practice. If you are taking zeroes from Aetna, so is your biller service.

...The old "give the bread to the baker" is usually the way to go...
Exception for some things you truly enjoy DIY that task AND get good results at it.
I will put together the exam chairs or do the supply orders or mop floors until I train staff, but I'd never do cred. Jmo.

I don't really enjoy work comp, FMLA, prior auths, hospital apps/re-apps, or a lot of things... but yeah, credentialing is the worst of all. It goes on days, weeks, months. I'd lean heavy to use biller service for credentialing (even if it's not cheap). They typically know the plans of the area, have contacts with payers, will do a good job as they have experience with it and skin in the game. I want to basically "sign here and here and here" and be on with each of the payers. 🙂
 
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The problem with credentialing is that - you have do all all the work anyway. When you credential you simply provide your life story, phone number, NPI, practice NPI, etc over and over again. They, the credentialer, don't know your story - so you have to provide the story to them. Once you've done it once for them you'll realize that you might as well have done it yourself. Guess what my desktop sticky note pad is full of - all of my phone numbers, TINs, NPIs, practice NPI. Applying to an insurance is simply copying these same values over and over. Except now I know exactly who I applied to and what my numbers are.
 
Yeah, I would think it goes without saying, but that is an important point that everyone from entrepreneurs to associates to hospital employ to mobile pods should have a list in their email, home hard drive, GDrive, whatever (or all of those) with their key credentialing info:

indiv NP,
group NPI if owner,
PECOS and login,
PTAN,
MedicAid login and number,
state license(s) number and exp,
state pharma number and exp,
DEA number and exp,
CAQH login,
pod school diploma,
residency completion certificate,
board cert/qual number and exp and certificate/letter scans,
surgery case logs,
you CV,
malpractice insurance cert,
3-5 references' contact info,
flu or TB or etc vaccine infos,
etc etc etc based on state or hospital or whatever

That is the bare minimum you should be able to email to anyone doing your credentialing, for a new job, for updates, for hospital apps, whatever. If you have that stuff and your CAQH up to date, you are generally pretty good. CAQH is good to do and then review once in awhile as it asks for past jobs, hospitals, and "resume" type stuff that will be faster for the doc themself to do (the initial time). A good billing service or office mgr or hospital/private credentialer will then take it from there and will save/update it... but don't count on that.

This stuff is more important to each of us than anyone else if you change jobs - or if the person doing that work for you flakes for some reason. A lot of people have this stuff all scattered around, and it can - and usually will - hurt them again and again with wasted time and delaying applications. It only takes about a day to get it all together and organized well.