State Licensing Backlog? How Digital Health Companies Can Avoid Delays in Provider Onboarding
In today’s rapidly growing digital health industry, provider onboarding and state licensing are essential for getting clinicians ready to practice across multiple states. Whether you’re managing a telemedicine company or scaling your digital health operations, one of the most frustrating obstacles you may encounter is the state licensing backlog. It can be a slog and seem to move at a glacial pace sometimes. This backlog can slow down the onboarding process, delaying patient care and disrupting your company’s growth plans and revenue targets.
State licensing delays can turn what should be a quick and efficient onboarding process into a months-long ordeal. For companies relying on providers being licensed and ready to practice across several states, these delays are not just an administrative inconvenience—they can have a direct impact on revenue, patient satisfaction, and your ability to meet demand during peak periods. Fortunately, there are ways to navigate these challenges and optimize your licensing and onboarding process.
In this post, we’ll dive into the common causes of state licensing delays and offer strategies that digital health companies can use to avoid lengthy onboarding bottlenecks. By adopting a proactive approach, streamlining internal processes, and leveraging external support, you can ensure that your providers are licensed, onboarded, and ready to practice without unnecessary delays.
Common Causes of State Licensing Delays
The first step in avoiding state licensing backlogs is understanding the root causes of these delays. Every state has its own specific requirements for licensing healthcare providers, including physicians, nurse practitioners (NPs), and physician assistants (PAs). The complexity and variation of these requirements often contribute to delays. It’s a puzzle and not a relaxing one.
Here are some common factors that contribute to state licensing bottlenecks:
1. Variation in State-Specific Requirements
Each state has its own medical licensing board and distinct requirements that providers must meet to become licensed. These requirements often vary depending on the type of clinician (physician, NP, PA), the clinician’s specialty, and whether the provider has an active or inactive license in other states.
Some states may require providers to complete specific continuing medical education (CME) courses, while others mandate that clinicians pass a state-specific exam. Additionally, states often differ in their approach to background checks, fingerprinting, and the required submission of documents like diplomas and malpractice insurance history. Providers who hold multiple licenses in different states may have to meet varying requirements, which can slow down the licensing process.
2. Incomplete or Inaccurate Applications
The complexity of licensing applications can lead to errors or omissions, which can cause significant delays. If a provider fails to submit all required documents, provides incorrect information, or misses a step in the application process, the state medical board may reject or delay the application until the issue is corrected. These errors can lead to back-and-forth communication between the provider, the licensing team, and the state board, further exacerbating delays.
3. State Board Processing Delays
Even if a provider submits a complete and accurate application, state medical boards may still experience processing delays due to high volumes of applications, understaffing, or administrative inefficiencies. During peak periods—such as when a state’s telehealth programs are expanding, or in response to a surge in demand for healthcare providers—state boards may be overwhelmed with applications, leading to longer processing times.
4. Regulatory Changes and Variations
Regulations around medical licensing are constantly evolving. States may update their rules for telemedicine providers, adjust supervision requirements, or modify their licensure renewal processes. Regulatory changes can create confusion and add complexity to the licensing process. Additionally, states may interpret telehealth regulations differently, meaning that providers who are fully licensed and compliant in one state may face additional hurdles when seeking licensure in another.
5. Criminal Background Checks and Fingerprinting
Most states require a criminal background check and fingerprinting as part of the licensing process. If there are delays in obtaining the necessary fingerprints, or if background checks reveal any discrepancies, this can add weeks or even months to the licensing timeline. States that require in-person fingerprinting can pose logistical challenges for providers, especially if they are practicing remotely or live out of state.
Strategies for Avoiding Licensing Delays
Understanding the common causes of licensing delays is the first step in preventing them. To ensure that your digital health company can onboard providers quickly and efficiently, you need a proactive strategy for managing the licensing process. Here are some key strategies to help you avoid state licensing bottlenecks and keep your provider onboarding process on track.
1. Streamline the Licensing Process with a Centralized System
One of the most effective ways to avoid delays is to centralize your licensing management system. Whether you’re licensing a handful of providers or hundreds, a centralized platform for tracking and managing applications can help ensure that no steps are missed, no documents are forgotten, and no deadlines are overlooked.
A robust licensing management system should include features such as:
Automated Reminders: Keep track of important dates, such as license renewals and CME deadlines, by setting up automated reminders for both the licensing team and the providers.
Document Storage: Centralize all necessary documents in one place, making it easy to retrieve and submit them to state boards as needed.
Real-Time Status Tracking: Provide real-time visibility into the status of each application, so your team can quickly identify any potential roadblocks and take action to resolve them.
Collaboration Tools: Enable collaboration between your licensing team, clinicians, and external partners to ensure that all parties are on the same page throughout the process.
By centralizing your licensing processes, you can reduce the risk of errors, streamline communication, and ensure that all licensing requirements are met on time.
2. Leverage External Licensing Experts
For digital health companies scaling operations across multiple states, managing the licensing process in-house can quickly become overwhelming. Licensing requirements vary widely from state to state, and staying up to date with the latest regulations and documentation can be time-consuming and complex.
Partnering with a licensing management company like Amethyst Licensing & Growth can take the burden off your internal team and ensure that your providers are licensed efficiently and without delays. Licensing experts can:
Monitor State-Specific Requirements: Stay up to date on the latest regulatory changes and ensure that your providers meet all state-specific requirements.
Handle Application Submissions: Manage the submission process on your behalf, ensuring that all documents are complete and accurate to prevent delays.
Track License Status: Provide real-time updates on the status of each provider’s license, allowing your team to plan accordingly and avoid onboarding delays.
Navigate Complex Cases: Address any unique challenges or roadblocks, such as criminal background checks or state board disputes, and work to resolve them quickly.
By outsourcing your licensing needs to experts, you can reduce the risk of delays and free up your internal team to focus on other priorities.
3. Plan Ahead for Peak Periods
Licensing delays are often exacerbated during peak periods, such as when telehealth companies are expanding into new states or preparing for an influx of patients. To avoid bottlenecks during these critical times, it’s important to plan ahead and anticipate potential challenges.
Some strategies for managing peak periods include:
Forecasting Provider Demand: Use data and analytics to forecast provider demand and anticipate when you’ll need to onboard new clinicians. By identifying high-demand periods in advance, you can start the licensing process earlier and ensure that providers are ready to practice when needed.
Staggering License Applications: If you’re onboarding a large number of providers, consider staggering their license applications to prevent overwhelming your internal team or state licensing boards. Submitting applications in waves can help ensure that each provider receives the attention they need and that delays are minimized.
Prioritizing Critical States: Focus on obtaining licenses in the states that are most critical to your operations. By prioritizing high-demand states and ensuring that providers are licensed in those regions first, you can minimize the impact of any licensing delays.
4. Stay Informed About Regulatory Changes
Regulatory changes at the state level can significantly impact the licensing process, particularly for telehealth providers. Staying informed about these changes is crucial for avoiding delays and ensuring that your providers remain compliant with state regulations.
Some ways to stay informed include:
Joining Professional Associations: Many state and national professional associations provide regular updates on licensing requirements and regulatory changes. By joining these associations, you can stay up to date on the latest developments and ensure that your team is prepared to navigate any changes.
Monitoring State Board Websites: Regularly check the websites of state medical boards for updates on licensing requirements, processing times, and new regulations. Some states may provide newsletters or bulletins that offer insights into upcoming changes.
Consulting with Licensing Experts: Partnering with licensing experts who are familiar with the regulatory landscape can help ensure that your company stays ahead of any changes and avoids delays.
5. Ensure Providers Are Prepared
Licensing delays often stem from issues on the provider side, such as incomplete applications or missing documents. To avoid these delays, it’s important to work closely with your providers to ensure that they are fully prepared for the licensing process.
Some steps to help providers prepare include:
Providing Clear Instructions: Offer clear, step-by-step instructions on the licensing process and the documents required for each state. Ensure that providers understand the importance of submitting complete and accurate information.
Offering Support: Make it easy for providers to ask questions and seek assistance during the application process. This could include providing access to licensing experts, offering informational webinars, or creating a help desk specifically for licensing issues.
Pre-Emptively Gathering Documents: Encourage providers to gather and submit all necessary documents (e.g., diplomas, CME certificates, malpractice insurance) well in advance of the application deadline to prevent delays.
Conclusion
State licensing backlogs can be a major obstacle for digital health companies looking to onboard providers quickly and efficiently. However, by understanding the common causes of licensing delays and implementing proactive strategies, your company can minimize bottlenecks and ensure that providers are ready to practice without lengthy delays.
Centralizing your licensing processes, leveraging external support (for example, using a third party company staffed by experts like the ones at Amethyst Licensing & Growth) staying informed about regulatory changes, and ensuring that providers are fully prepared can all help reduce the risk of licensing delays. By taking a proactive approach, your company can streamline the onboarding process, meet patient demand, and continue to grow in the dynamic digital health landscape.
