How to Break Up With Your Credentialing Vendor (and What to Do Next)

A Practical Guide for Decoupling—Whether It’s a Mess or Just Time to Move On

When it’s time to part ways with your credentialing vendor—whether due to poor performance or simply a change in direction—the transition process matters. You need to protect your organization, secure your data, and ensure continuity. Below, you’ll find a step-by-step approach, sample communications, and a checklist to guide you through a smooth and safe separation.

Step 1: Review Your Contract and Know Your Rights

Before taking action, carefully review your contract to clarify your rights and obligations. This is your roadmap for a compliant and organized transition.

• Termination clause: Understand the notice requirements and obligations for both parties.
• Data return and destruction: Look for language about how your data will be returned, transferred, or destroyed.
• Final reporting: See if you’re entitled to a final status report, audit, or handoff documentation.
• State-specific data rules: Know any state requirements for healthcare data retention and transfer.

If your contract is unclear or missing, document every request and communication, and consider seeking legal advice. This experience can guide your future vendor agreements and reinforce why strong contracts matter.

Step 2: Communicate With Stakeholders Early

Transparency with leadership and your team is essential. Let them know about the transition, the reasons behind it, and what to expect moving forward.

• Notify leadership and teams: Share your reasons for the change and outline the transition plan.
• Set expectations: Be upfront about potential risks, disruptions, or unknowns.
• Keep everyone updated: Promise regular updates as the process unfolds.

Early communication helps manage expectations, reduces confusion, and ensures everyone is aligned during the transition.

Step 3: Officially Initiate the Separation

A formal, documented approach is crucial—whether you’re leaving a problematic vendor or a reputable partner. Your goal is to reclaim your data and ensure nothing is missed.

• Provide written notice: Follow your contract’s requirements for termination.
• Request all files and documentation: Ask for provider files, applications, notes, correspondence, and a comprehensive final report.
• Request data destruction: Ask for written confirmation or a certificate of destruction if applicable.
• Revoke access: Remove the vendor from all systems and shared drives.
• Document everything: Keep records of all requests, responses, and returned materials.

Taking these steps ensures you have a clear record and a strong foundation for the next phase.

Sample Emails for Vendor Separation

Here are sample emails you can adapt for your situation:

Termination Notice

Data Request Follow-Up

Stakeholder Update

These templates help ensure your communications are clear, professional, and thorough.

Step 4: Secure and Organize Your Data

Once you’ve received your files, organize them in a secure, accessible system. This will make it easier to audit and continue your credentialing work without interruption.

• Centralize all files: Store them securely in a system like Google Drive or Dropbox.
• Create or update your provider roster: Track key data points such as provider names, NPIs, license numbers, expiration dates, and payer statuses.
• Audit for completeness: Check for missing or incomplete work and flag any gaps.

Good organization now will save you countless headaches as you move forward.

Step 5: Assess, Communicate, and Plan Next Steps

Review your data, identify any gaps, and communicate your findings and next steps to your team and leadership.

• Review final reports and files: Identify unfinished applications, expired documents, or compliance risks.
• Reach out for missing items: Contact providers or payers directly as needed.
• Keep leadership and providers informed: Share updates and your remediation plan.

Clear communication and a prioritized action plan will help your team recover quickly and efficiently.

Step 6: Prevent Future Issues

Use this transition as a learning opportunity to strengthen your credentialing process and vendor management for the future.

• Strengthen future contracts: Include clauses for data return, reporting, transition support, and data destruction.
• Implement internal controls: Assign ownership for credentialing data and schedule regular audits.
• Use credentialing software: Track expirations and automate reminders.
• Document your workflow: Make future transitions smoother and less stressful.

Proactive improvements now will pay off in long-term efficiency and security.

Credentialing Vendor Transition Checklist

To help you stay on track, here’s a practical checklist for decoupling from a credentialing vendor:

• Review your contract for termination, data return, and reporting clauses.
• Notify leadership and affected teams about the vendor transition.
• Provide formal written notice of termination to the vendor.
• Request all provider files, applications, notes, correspondence, and a final status report.
• Request written confirmation or certificate of data destruction if applicable.
• Revoke vendor access to all systems and shared drives.
• Collect and centralize all returned files in a secure location.
• Create or update a provider roster with key data points.
• Audit returned data for completeness and identify any gaps.
• Communicate status and remediation plans to leadership and providers.
• Contact providers or payers directly to fill in missing information.
• Strengthen future contracts with clear data and transition clauses.
• Implement internal controls and assign credentialing data ownership.
• Use credentialing software to track expirations and automate reminders.
• Document workflows to facilitate future vendor transitions.
• Maintain detailed records of all communications and data transfers during the transition.
• Set realistic expectations with stakeholders about potential risks and timelines.
• Follow up persistently with the vendor to ensure timely data return and reporting.
• Plan for contingencies in case of vendor non-cooperation or delays.
• Consider legal advice if contractual obligations are not met.

Keep this checklist handy throughout the process to ensure nothing is overlooked.

What’s Next? Find Your Ideal Credentialing Partner

Decoupling from your current vendor is just one step in building a stronger credentialing process. If you’re ready to choose a new partner, don’t miss our Best Credentialing Services Guide for a step-by-step approach to vendor selection, scoring, and contract negotiation.