As the healthcare industry evolves, Provider Lifecycle Professionals (PLPs) are increasingly tasked with navigating complex regulatory landscapes. One area that continues to grow in importance is interstate licensure. At the heart of that landscape are interstate compacts—agreements that streamline the process for healthcare providers to practice across state lines. For PLPs, understanding these compacts isn’t optional—it’s essential.
What Are Interstate Compacts?
An interstate compact is a formal agreement between two or more states to address shared concerns—in this case, licensing and practice mobility. For healthcare, compacts allow providers to work in multiple states without having to obtain a full license in each one. Instead, they hold a multistate or expedited license recognized by all compact-member states.
Some of the most relevant compacts for PLPs include:
- Nurse Licensure Compact (NLC)
- Interstate Medical Licensure Compact (IMLC)
- Psychology Interjurisdictional Compact (PSYPACT)
- Physical Therapy Compact (PTC)
- Social Work Licensure Compact (emerging)
Each compact has specific eligibility requirements, application processes, and participating states—making it critical for PLPs to stay current.
Why Interstate Compacts Matter
PLPs who work in credentialing, licensing, or provider enrollment need to understand how compacts affect timelines, documentation, and compliance. When a provider is eligible for a compact, the licensure process can be significantly faster—sometimes cutting wait times from months to weeks. This has a direct impact on provider onboarding, access to care, and revenue generation.
Compacts also make it easier for healthcare systems to respond to workforce shortages, public health emergencies, and telehealth expansion—situations where cross-state flexibility is vital.
What PLPs Need to Know
Compacts Are Not Universal: Not all states participate in every compact, and not all providers will qualify. Each compact outlines criteria related to primary state of licensure, background checks, and disciplinary history. PLPs should verify both provider eligibility and state participation before initiating the process.
They Affect Workflow and Documentation: Interstate compacts often involve new application portals, compact commissions, or centralized data verification systems. PLPs should become familiar with these systems—such as the IMLC’s centralized portal—to streamline documentation collection and reduce delays.
They Can Influence Enrollment and Payer Strategy: Some payers may still require state-specific licenses, even if a provider holds a compact license. PLPs should coordinate with enrollment teams to confirm whether a compact-based license meets payer requirements in each state.
They Require Ongoing Monitoring: Like all licenses, compact-based privileges require renewal, and compact rules may change as legislation evolves. PLPs must track expiration dates, regulatory updates, and compliance requirements across jurisdictions.
The Bottom Line
Interstate compacts represent a major shift in how licensure works—and a powerful opportunity to simplify and accelerate provider mobility. For PLPs, this means updating internal workflows, learning new systems, and staying ahead of regulatory changes. But it also means gaining leverage in conversations about provider onboarding strategy, licensing efficiency, and access to care.
In short, understanding compacts isn’t just about checking a box—it’s about being a strategic partner in helping healthcare organizations deliver care across boundaries.