Why is obtaining proper licensure and registrations crucial for a physician?

Obtaining proper licensure and registrations is crucial for a physician primarily because it allows participation in managed care plans. Being licensed ensures that a physician has met the necessary educational and clinical competency requirements set by medical boards and state regulations, which is a prerequisite for joining these plans. Managed care organizations often require physicians to hold valid licenses and be credentialed to provide care to their members, ensuring that only qualified and authorized practitioners are delivering medical services within their networks.

Involvement in managed care plans is pivotal for a physician as it expands access to a broader patient population and can improve practice viability through established referral networks and consistent patient volume. These factors significantly contribute to the operational success and financial stability of a physician’s practice.