Patient Safety at Stake: Why Contractors Deserve a Spot in Your Credentialing Program

In the intricate and tightly regulated realm of healthcare, vendor credentialing stands as a pivotal process 
to safeguard patient safety, ensure regulatory compliance, and boost operational efficiency. This process 
involves verifying and managing the credentials of third-party representatives, such as medical device 
sales reps, pharmaceutical representatives, and service contractors, who enter healthcare facilities to 
perform their duties. While hospitals often prioritize credentialing for clinical staff, permanent employees, 
and third-party vendors, contractors are an equally vital component of a comprehensive credentialing 
program. This article delves into vendor credentialing governance best practices and underscores why 
contractors should be considered a core part of a hospital's credentialing strategy.

Why Contractors are a Core Component of a Hospital's Credentialing Program

In an interconnected healthcare environment, the lines between employees and non-employees are 
increasingly blurred. Contractors—whether they’re on-site technicians, remote IT specialists, or 
international support staff—play a pivotal role in keeping hospitals running smoothly. However, their 
access to facilities, sensitive data, and critical systems also introduces significant risks if not properly 
managed. 

Every non-employee, regardless of their location or role, should be included in a standardized 
credentialing policy. From biomedical engineers repairing life-saving equipment to remote workers 
handling patient data, contractors are integral to hospital operations—and their credentials must be 
verified with the same rigor as those of permanent staff. Ignoring this crucial component of credentialing 
isn’t just an oversight; it’s a gaping vulnerability in your hospital’s safety and compliance framework.
 

Patient Safety
Contractors often work in close proximity to patients and critical healthcare equipment. Ensuring 
that these individuals are properly credentialed minimizes the risk of accidents, errors, and breaches 
that could harm patients.

Regulatory Compliance

Regulatory bodies such as The Joint , CMS and National Fire Protection Agency (NFPA) require 
hospitals to maintain a safe and compliant environment. This includes ensuring that all individuals 
with access to the facility meet specific standards. Contractors who are not properly credentialed 
can expose the hospital to fines, penalties, and loss of accreditation.

Operational Continuity
 
Contractors play a key role in maintaining the hospital's infrastructure and operations. For example, 
HVAC technicians ensure proper ventilation, while IT contractors maintain critical systems. If these 
individuals are not credentialed, their inability to access the facility could disrupt operations and 
compromise patient care.

Risk Mitigation

Contractors often work in close proximity to patients and critical healthcare equipment. Ensuring 
that these individuals are properly credentialed minimizes the risk of accidents, errors, and breaches 
that could harm patients.

Reputation Management

A single incident involving an uncredentialed contractor can damage a hospital's reputation. Patients 
and stakeholders expect healthcare facilities to prioritize safety and compliance. By including 
contractors in the credentialing program, hospitals demonstrate their commitment to these values.

The Importance of Credentialing Governance

Vendor and contractor credentialing governance ensures that all third-party individuals entering a 
healthcare facility meet the necessary standards for safety, professionalism, and compliance. This process 
typically involves verifying credentials such as licenses, certifications, immunizations, training, and 
background checks. Effective governance not only shields patients but also mitigates risks for the 
hospital, including legal liabilities, regulatory penalties, and reputational damage.

Building a strong vendor and contractor credentialing program requires more than just checking boxes. 
This section outlines best practices for establishing governance that drives continuous improvement and 
protects your organization. To ensure a successful vendor credentialing program, healthcare organizations 
should adhere to the following governance best practices.

Develop a Comprehensive Credentialing Policy

Establish a clear and standardized policy that outlines the requirements for all vendors and 
contractors. This policy should include criteria for background checks, immunization records, training 
certifications, and compliance with industry standards such as HIPAA and OSHA.

Centralize Credentialing Processes

Use a centralized credentialing platform to streamline the verification and management of vendor 
and contractor credentials. This ensures consistency, reduces administrative burden, and provides 
real-time access to credentialing data.

Include Contractors in the Credentialing Program

Recognize contractors as a core component of the credentialing program. Ensure that they undergo 
the same rigorous verification process as other vendors and clinical staff. This includes verifying their 
technical certifications, safety training, and compliance with hospital policies.

Conduct Regular Audits and Updates

Regularly audit vendor and contractor credentials to ensure they remain current and compliant. 
Implement a system for tracking expiration dates and sending reminders for renewals.

Leverage Technology for Efficiency

Invest in credentialing software that automates the verification process, tracks compliance, and 
provides reporting capabilities. This reduces manual errors and improves efficiency.

Collaborate with Vendors and Contractors

Foster strong relationships with vendors and contractors by communicating credentialing 
requirements clearly and providing support throughout the process. This collaboration ensures 
compliance and builds trust.

Train Staff on Credentialing Protocols

Educate hospital staff on the importance of vendor and contractor credentialing and their role in 
enforcing compliance. This includes training on how to verify credentials and handle non-compliant 
individuals.

A well-structured governance framework not only safeguards healthcare organizations but also delivers 
significant benefits to vendor and contractor partners. For instance, this approach can empower general 
contractors by offering unprecedented transparency into their subcontractors’ compliance status. By 
providing access to real-time, on-site activity data, general contractors gain the ability to proactively 
monitor and audit critical processes such as change orders and billing practices. This transparency ensures 
accuracy, reduces disputes, and fosters trust, ultimately enhancing operational efficiency and 
strengthening partnerships across the supply chain.

Conclusion

Vendor credentialing governance is a cornerstone of patient safety, regulatory compliance, and 
operational efficiency in healthcare facilities. While hospitals often focus on credentialing clinical staff and 
vendors, contractors must not be overlooked. Their role in maintaining the hospital's infrastructure and 
operations makes them a core component of any credentialing program. By implementing best practices 
and recognizing the importance of contractor credentialing, hospitals can protect patients, mitigate risks, 
and uphold their commitment to excellence in healthcare delivery.