- March 10, 2025
- Credentialing
Most people in healthcare know how complex and cumbersome provider credentialing and licensing can be. Most outside of the sector are blissfully unaware of its intricacies, despite the fact that delays in licensing directly impact patient care.
A recent article in The Atlantic examined professional licensing broadly across industries, highlighting how despite measures to reform licensing and roll back unnecessary red tape, very little has been done. “In fact, the institution of professional licensing has only grown in its reach and outlandishness. More and more new professions are becoming licensed, such as art therapists and, most recently and most absurdly, fortune tellers.”
While ensuring rigorous vetting for healthcare providers is crucial, the current system is riddled with obstacles.
According to the article, reform efforts have been lackluster because they fail to address the center of the problem, “the regulatory boards that control professional licensing.” The article explains, “When a state makes a licensing law—a rule that only practitioners who have jumped through certain hoops can practice—it usually also creates a board to interpret and implement the law. Each state has dozens of these boards; almost 1,800 have been established nationwide. They are powerful engines of professional regulation, deciding who is in and who is out, setting the terms of what you can do as a provider and, ostensibly, disciplining professionals for misbehavior.” Licensing boards hold immense power, determining who can practice and under what conditions. In some cases, there is hesitation around reform, such as updating existing laws and procedures that could ease physician shortages.
The ongoing healthcare workforce crisis demands urgent solutions. While patient safety remains paramount, we need reform that removes unnecessary barriers for providers to practice where and when they are needed. The Interstate Medical Licensure Compact (IMLC) is a great step forward, simplifying multi-state licensing, but more work is needed. A centralized credentialing model—where states access a standardized set of provider data—could further streamline licensing, allowing clinicians to work where they’re needed most.
With a new administration and ongoing shifts within the sector, now is the time to prioritize these reforms. Cutting unnecessary red tape, modernizing credentialing, and ensuring providers can focus on patient care is what we should be aiming for.
Where do you think reform is needed in provider credentialing? Let us know in the comments!