Credentialing and Privileging in Healthcare: What Providers and Organizations Need to Know in 2026

Credentialing and Privileging in Healthcare: What Providers and Organizations Need to Know

Credentialing is the official process of confirming and verifying a healthcare provider’s qualifications to ensure they meet your organization’s standards for clinical practice.

Credentialing answers a fundamental question:
Is this provider qualified to practice medicine or deliver care in our organization?

What Credentialing Typically Verifies

Credentialing involves validating a wide range of information, including:

  • Medical education and training
  • State licensure
  • Board certification
  • DEA registration (if applicable)
  • Work history and references
  • Professional liability coverage
  • Disciplinary history

Verification is not a one and done activity. Credentials have to be continuously monitored and periodically reviewed to remain compliant with regulatory and accreditation requirements.

What Is Privileging and How Is It Different?

While credentialing identifies who a healthcare provider is and what they do, privileging determines what that provider is allowed to do within a specific healthcare institution.

Privileging grants authorization for a doctor, nurse etc. to perform specific procedures or services based on:

  • Demonstrated competence
  • Training and experience
  • Organizational need
  • Available resources and oversight

Privileges aren’t regulated by a state or national body but instead are granted by a medical staff committee and are tailored to that providers practice.

Credentialing vs. Privileging: Key Differences

Although closely related, credentialing and privileging serve different functions:

Credentialing Privileging
Verifies qualifications Authorizes clinical activities
Focuses on background and credentials Focuses on scope of practice
Applies broadly across organizations Is organization-specific
Ongoing verification required Periodic review and renewal

Why Credentialing and Privileging Matter

Credentialing and privileging are key to high quality healthcare and minimizing risk. When done correctly, they help organizations:

  • Protect patients from unqualified or underqualified providers
  • Meet accreditation and regulatory standards
  • Reduce legal and financial risk
  • Support consistent, high-quality care delivery

Not following these processes or even simple delays can lead to serious consequences, including compliance violations, denied reimbursements, and reputational damage.

The Regulatory and Accreditation Landscape

Credentialing and privileging are shaped by multiple regulatory and accrediting bodies. While requirements vary, most healthcare organizations must align with standards from:

  • The Joint Commission
  • Centers for Medicare & Medicaid Services (CMS)
  • NCQA
  • ACCME (for organizations offering continuing medical education)

These organizations expect healthcare providers to maintain their licenses demonstrate ongoing professionalism and keep up with their required trainings (CME).

Recently, accreditation standards have emphasized continuous monitoring, not just spot checks which raise the stakes for accurate documentation and tracking.

The Credentialing Process: Step by Step

While workflows vary by organization, credentialing typically follows a structured process:

1. Application and Documentation

Providers submit credentials, disclosures, and supporting documentation.

2. Primary Source Verification

The organization verifies credentials directly with primary sources, such as licensing boards and training institutions.

3. Review and Approval

Credentialing committees review verified information and make recommendations.

4. Ongoing Monitoring and Recredentialing

Licenses, certifications, and other credentials are monitored for expiration and changes, with recredentialing conducted on a regular cycle.

The Privileging Process: Step by Step

Privileging builds on credentialing and focuses on clinical authority.

1. Privilege Request

Providers request specific privileges based on training and experience.

2. Competency Evaluation

Committees assess clinical competence using case logs, peer reviews, outcomes data, and education history.

3. Committee Review and Approval

Privileges are granted, modified, or denied based on organizational standards.

4. Ongoing Evaluation

Privileges are periodically reviewed and adjusted as providers’ roles, skills, or organizational needs evolve.

Common Challenges in Credentialing and Privileging

Even well-run hospitals face difficulties managing the compliance work including:

  • Manual, paper-heavy workflows
  • Disconnected systems for HR, education, and credential tracking
  • Difficulty tracking expirations and renewals
  • Audit preparation stress
  • Scaling processes across departments or locations

As healthcare organizations combine via mergers they become more complex, and these challenges only get worse.

How Technology Supports Credentialing and Privileging

Technology plays a critical supporting role in modern credentialing and privileging programs, particularly when it comes to education, competency, and documentation.

The Role of Learning Management Systems (LMS)

While healthcare LMS platforms don’t replace credentialing software, they provide essential infrastructure by helping organizations:

  • Track required training tied to privileges
  • Document CME and CE completion
  • Maintain centralized learning records
  • Support competency-based education
  • Generate reports for audits and reviews
  • Integrate with accredited bodies like ACCME PARS and CPE Monitor

Education is a pilar of keeping privileges, especially since guidelines change so frequently as new medicines, technologies and procedures emerge.

Using OasisLMS to Support Credentialing and Privileging

OasisLMS Healthcare focused system, is designed to support healthcare organizations that need reliable, scalable learning infrastructure to complement credentialing and privileging efforts.

With OasisLMS, organizations can:

  • Track CME and CE activities in one centralized system
  • Align learning requirements with clinical roles and privileges
  • Maintain detailed education records for audits and healthcare accreditation
  • Support ongoing competency development across departments or facilities
  • Automatically report CME and MOC
  • Create performance improvement plans (PIP) to enhance patient outcomes

Rather than managing education separately from credentialing workflows, OasisLMS helps bring structure and visibility to a critical piece of the compliance puzzle.

Best Practices for Managing Credentialing and Privileging

Healthcare organizations that manage these processes well tend to follow a few consistent best practices:

  • Standardize workflows across departments
  • Align education requirements with privileges and roles
  • Automate tracking and reminders where possible
  • Prepare continuously for audits, not reactively
  • Invest in systems that scale as the organization grows

All of these practices help standardize tasks across your organization.

Final Thoughts

Credentialing and privileging are much more than checking boxes or easy administrative tasks. When done correctly they are essential procedures that protect patients, support clinicians, and uphold the integrity of healthcare organizations.

As regulatory expectations evolve and healthcare delivery becomes more complex, organizations that invest in clear processes, supported by the right technology, will be best positioned to manage risk, ensure compliance, and deliver high-quality care.

Frequently Asked Questions About Credentialing and Privileging

What is the difference between credentialing and privileging?

Credentialing verifies a healthcare provider’s qualifications, such as education, licensure, and certification. Privileging determines which specific clinical services or procedures that provider is authorized to perform within a particular healthcare organization.

Is credentialing required before privileging?

Yes. Credentialing must be completed first to confirm that a provider meets baseline qualifications. Privileging decisions are then made based on verified credentials, demonstrated competence, and organizational needs.

How often do credentialing and privileging need to be renewed?

Credentialing typically requires ongoing monitoring and periodic recredentialing, often every two to three years. Privileges are reviewed on a regular cycle and may also be updated based on changes in a provider’s role, performance, or scope of practice.

Who is responsible for credentialing and privileging in a healthcare organization?

Credentialing is usually managed by the medical staff office, credentialing specialists, or HR teams, while privileging decisions are made by medical staff leadership or credentialing committees, often with governing board oversight.

How does continuing education relate to privileging?

Ongoing education, including CME and CE, helps demonstrate continued competency and is often tied to maintaining or expanding clinical privileges. Accurate tracking of educational activities is essential for audits and reappointment reviews.

Can an LMS be used for credentialing and privileging?

An LMS does not replace credentialing software, but it plays a key supporting role by tracking required education, documenting CME and CE completion, and providing reports that support credentialing and privileging decisions.

What are the biggest risks of poor credentialing and privileging processes?

Inadequate processes can lead to compliance violations, patient safety risks, legal exposure, and accreditation challenges. Inconsistent documentation and manual tracking are common sources of error.

 

Sam Hirsch

Vice President, Sales and Marketing

Sam Hirsch is the Vice President of sales and marketing at 360 Factor. He has helped over 250 associations find the right LMS for their organization.

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