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Credentialing Timelines When Acquiring a New Practice Location

medbpo360 Team · 5 min read

When a practice acquires another location or opens a new one, the clinical and operational transition gets most of the planning attention — moving records, aligning staff, updating signage. Credentialing tends to get modeled as an afterthought, which is exactly backwards: it's often the single biggest determinant of when the new location can actually start billing and collecting revenue.

What actually has to happen, provider by provider

Every provider at the new location needs enrollment or location updates with Medicare through PECOS, with state Medicaid, and with every commercial payer the location will bill — even if that provider is already credentialed elsewhere with the same payer. Location changes and new practice affiliations typically require their own updates, not a simple transfer. Medicare enrollment through PECOS commonly runs 60 to 90 days from a complete submission, and that clock starts when the paperwork is actually filed correctly — not when the deal closes or the doors open.

Delegated credentialing can shorten this — with real ongoing obligations

Practices with delegated credentialing agreements in place with certain payers can move faster, since the payer defers initial verification to the delegated entity rather than running its own full review. But delegated status isn't free: it requires maintaining audit-ready credentialing files continuously, not just at the point of initial delegation, and falling out of compliance risks losing delegated status altogether — which would remove the very shortcut the practice was relying on.

The real risk: modeling the deal around the wrong clock

The most common mistake isn't a credentialing delay itself — delays are common and often unavoidable given how many payers and systems are involved. The mistake is modeling the financial timeline of an acquisition or new-location opening around the clinical and operational transition date, rather than the credentialing timeline. A location that's clinically ready to see patients on day one but isn't billable with several payers for another 60-90 days creates a revenue gap that was foreseeable, and often avoidable, if credentialing had started the moment the deal was in motion rather than after close.

Starting the clock early

The practical fix is starting credentialing applications as early as legally and practically possible — often before a deal fully closes, once there's enough certainty to begin the paperwork — rather than waiting until the location is operational. For multi-provider transitions, that also means sequencing which providers and which payers get prioritized first, since not every provider needs to be billable with every payer on day one.

See how we approach credentialing and payer enrollment for practices timing new-location or acquisition credentialing against their actual opening date.

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