In the realm of healthcare, particularly in nursing homes, credential management is a crucial aspect that influences both quality of care and operational efficiency. The administrative burden of managing staff credentials, coupled with the high cost of non-compliance, makes this a significant area of concern for nursing home administrators. This article provides an in-depth analysis of Automated credentialing systems, exploring their functionality, the benefits they deliver, and the tangible return on investment (ROI) they can provide.

Table of Contents:

Understanding Automated Credential Management

Comprehensive Benefits of Automation

Detailed ROI Analysis

Industry Context and Workforce Composition

Cost Of Credentialing Per Staff

Estimated ROI for AI Credentialing

AI-Enabled Credentialing Platforms

Conclusion

Understanding Automated Credential Management

Automated credentialing systems are advanced software solutions designed to streamline the management of healthcare provider certifications and licensing requirements. These systems automate essential tasks such as employee onboarding, tracking expiration dates, renewing certifications, requesting documents and ensuring compliance with regulatory standards. By moving away from traditional methods like manual tracking and spreadsheets to sophisticated automated solutions, nursing homes can significantly enhance accuracy, reduce human error, and improve compliance.

Comprehensive Benefits of Automation

• Significant Cost Reduction: Automated systems reduce the labor-intensive nature of manual credential management. By minimizing the administrative workload, these systems allow staff to focus on higher-value activities, translating directly into cost savings.
• Enhanced Regulatory Compliance: Compliance with healthcare regulations is non-negotiable, because the legal costs of missed credentials could be significant. Automated systems provide timely alerts before credential expirations, reducing the risk of penalties associated with non-compliance and ensuring continuous regulatory adherence.
• Operational Efficiency: The automation of credential verification speeds up the process of onboarding new staff and maintaining current staff compliance, which in turn optimizes workforce management and enhances the capacity for quality care delivery.
• Data Security and Management: With stringent security measures in place, automated credentialing systems ensure the integrity and security of sensitive data, protecting against unauthorized access and potential data breaches.

Detailed ROI Analysis

To quantify the ROI of automated credentialing, consider these aspects:

• Cost Savings: Evaluate the reduction in hours spent on manual processes compared to the efficiency gained with automation. This includes savings from decreased labor costs and avoidance of compliance fines.
• Revenue Enhancement: Assess how quicker credentialing processes enable faster deployment of staff, potentially reduces burn out, increasing service offerings and availability, and improves quality of patient care.
• Total Investment: Account for all costs related to the implementation and maintenance of the AI system, including initial setup and training expenses.
• ROI Calculation: ROI=(Total Annual Savings from AI Implementation−Total Annual AI Software Investment/Total Annual AI Software Investment)×100

Where net benefits equal the sum of cost savings and additional revenue generated minus the total investment.

Industry Context and Workforce Composition

According to the US Department of Labor, in 2023 US Nursing and Residential Care Facilities employ approximately 3,079,930 employees. Of these, about 70% (2,155,951 employees) require a higher level of credentialing due to the necessity of possessing some form of competency, certification, or licensing. This includes a wide range of personnel from administrators to food preparation workers, all of whom require effective credential management.¹

Cost Of Credentialing Per Staff

Credentialing is tedious and time consuming, requiring reminder email communications, download and upload of multiple documents, calendar settings, spreadsheet monitoring and updates and categorizing and storing numerous documents. On average the FTE cost of monitoring and maintaining credentials for each staff is about $90 - $150 for nursing and residential care facilities depending on the number of credentials they manage, the hourly rate of the employee responsible for credentialing and other credentialing requirements and level of automation or optimization of their credentialing process.  

Estimated ROI for AI Credentialing

It is difficult to calculate the cost of risk and liabilities.  So the following only takes into account the direct FTE cost of credentialing.  

A properly engineered AI software should reduce the credentialing workflow by over 90%, by automating and streamlining the redundant and mundane tasks, and freeing up the staffs’ time to attend to more important tasks. Such AI products can provide a 25% to 30% ROI, not calculating savings from the risk and liability protection that can be achieved with automated systems.  Use Perla’s ROI calculator to determine how much you can save with an automated system that reduces your workflow by 90%. 

AI-Enabled Credentialing Platforms

In the rapidly evolving landscape of healthcare, AI-enabled credentialing platforms represent a significant advancement in managing the complexities associated with staff credentialing. Among these innovative solutions, Perla stands out as a specialized platform tailored for the long-term care sector, particularly in the nursing homes industry.

Perla has developed a unique offering that caters specifically to the needs of this sector. Its platform is equipped with features designed to address the nuances and requirements of long-term care facilities. One of the standout attributes of Perla is its user-friendly interface, which simplifies the credentialing process without the need for extensive training. This ease of use is crucial for facilities that prioritize efficiency and minimal disruption to their daily operations.

A key feature of Perla's technology is the AI-assisted credentialing. This innovative feature transforms the traditional, labor-intensive credentialing process by automating over 90% of the tasks involved. With this feature, Perla significantly reduces the time and effort required to manage credentials, enabling staff to focus more on patient care and less on administrative duties. This level of automation not only streamlines operations but also drastically cuts down on the potential for human error, enhancing compliance and reducing risk.

The financial implications of adopting Perla's platform are also compelling. Perla’s AI-assisted Credentialing feature offers an ROI of about 30%, making it not only a strategic asset for improving operational efficiency but also a sound investment from a financial perspective. By integrating Perla's AI-enabled platform, nursing homes can achieve significant cost savings, improve compliance rates, and enhance overall staff satisfaction.

Perla's dedication to advancing credential management through AI technology makes it an exemplary leader in the field, particularly for long-term care and nursing homes seeking to modernize their credentialing processes and achieve high returns on their investments.

Conclusion

The shift towards automated credential management systems in nursing homes represents a strategic investment that can yield significant returns in terms of cost savings, improved compliance, and enhanced operational efficiency. As the healthcare landscape continues to evolve, embracing these technological solutions will be critical for maintaining competitive advantage and delivering high-quality care. AI and software-assisted credentialing that eliminate over 90% of the tasks required in credentialing can produce an ROI of about 30% for nursing and residential facilities, highlighting the extensive scope and critical need for efficient credential management systems in this sector.

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Endnotes:

At the end of 2024, nursing and residential care facilities employed over 3.3 million employees, with skilled nursing facilities accounting for more than half of this workforce—approximately 1.4 million employees. (source: Federal Reserve Economic Data, FRED).