Payer credentialing

Definition

The approval that lets a provider bill a plan; it belongs to the entity, not the deal.

Why It Matters

An asset purchase can close on a fully booked clinic that cannot bill anyone for months, because contracts and credentials sit with the selling entity and re-credentialing with each plan runs on its own calendar. This is the most common reason a clinic deal is structured as a stock purchase instead. Ask which plans are contracted, when each was last renewed, and what the payer says about assignment before choosing a structure.