Provided by:  Jennifer Kirschenbaum, Esq.

July 6, 2022


Hi Jennifer,

I want to buy a practice and I want to bill from day 1 but I’m not credentialed yet.  How do I handle from Closing to credentialed?  

Dr. F


Yes! The in-between!  There are a few right answers and some wrong ones available here…. Let’s go over a few rights answers.  The most common and proper solution, as part of the transaction we enter into an “in-between” agreement or transition services agreement whereby you use seller’s credentials and we have a contract for money transfer and services.  This solution is the cleanest IF the parties actually follow through with the terms of the Transition Services Agreement.  Be mindful that this option may bring with it terms that may require a financial wherewithal and accounting that some just don’t have the bandwidth for.   

Another option is the “wait it out” method - where you wait it out to bill once credentialed.  Depending on the payor, you may or may not be authorized to hold claims for future release.  

Sometimes if you are an IPA member, the benefits of that participation will save you from the in-between, so be sure to inquire.  

A “no no” is to use the seller tax ID with NO construct established.  

On a positive note, hopefully the in-between is very temporary, and only a detail to be worked out during your sale/purchase process.  With two motivated parties, typically this period is worked out without much disruption to deal flow.