Hospitals and other major medical organizations recognize the importance and need for an annual financial audit that precisely demonstrates the institution¹s financial position, the adequacy of financial processes, and identifies areas in need of improvement. No board or CEO would be comfortable without such a time-tested tool. Boards rely on such regular audits for assurance that "all is well". CEOs and other managers use the annual financial audit to fine-tune their institution¹s financial program including policies, procedures, and internal control mechanisms. Few doubt
the importance of the annual external financial audit.

Medical leaders might borrow or modify this technique in order to refine their own important processes, namely, performance improvement and credentialing. This monograph demonstrates the annual credentials audit for the medical staff and board. This example will help medical leaders, whether appointed or employed, to assure that the credentialing process is serving the needs of patients, physicians, and the organization.