Tackling Rising Labor Costs in Healthcare: How Efficient Payer Enrollment and Credentialing Can Help Provider Groups and Health Systems Stay Competitive

Healthcare provider groups and health systems are facing one of their most challenging financial periods in recent history, as labor costs continue to soar. According to Kaufman Hall, healthcare organizations are now investing more than $300,000 in each employed physician, marking a significant increase.

While healthcare systems are recovering in certain areas, many are still struggling to align their workforce models with the current healthcare environment. This includes rising labor costs, physician burnout, and the need to improve operational efficiencies—particularly around payer enrollment and credentialing.

The cost of employing physicians has grown by 5% year-over-year, according to Kaufman Hall’s Physician Flash Report, and it shows no signs of slowing down.

For many health systems, labor expenses are a significant portion of their overall budget, especially as temporary hires and staffing shortages continue to impact operations. Meanwhile, healthcare organizations are also facing the reality of treating more complex, sicker patients, which increases costs further.

As operating margins are squeezed, many organizations are rethinking their staffing models and looking for efficiencies wherever they can.

One area ripe for improvement is provider enrollment and credentialing. Inefficient or outdated processes in these areas can lead to claim rejections, delayed payments, and administrative overhead that only exacerbates financial strain.

According to a 2023 report by the American Medical Association (AMA), the credentialing process can take weeks or even months, delaying physicians’ ability to see patients and bill for services.

For health systems and provider groups looking to regain financial stability, automating and streamlining payer enrollment and credentialing can be a game-changer. By ensuring that all provider information is accurate, up-to-date, and compliant with payer requirements, healthcare organizations can reduce costly errors, speed up reimbursement cycles, and eliminate administrative redundancies.

Madaket Health specializes in simplifying the credentialing and payer enrollment processes for health systems and provider groups. Our platform offers automated solutions that ensure your provider directories are accurate, compliant, and updated in real-time. With our help, healthcare organizations can reduce labor costs, avoid costly delays, and improve their bottom line.

As the industry faces ongoing financial challenges, taking a proactive approach to credentialing and payer enrollment is critical.

Let Madaket Health help you streamline these processes, reduce inefficiencies, and ensure your provider groups stay competitive in today’s evolving healthcare landscape.