What is NPI?
On January 23, 2004 the Centers for Medicare & Medicaid Services (CMS) published the final rule for the National Provider Identifier (NPI). The rule establishes a standard for using a nationally assigned NPI that will be required for all electronic health care transactions. It is one provision of the Administrative Simplification portion of the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
What is the purpose of NPI?
The NPI is a single identification number that will be assigned by the federal government to health care providers. It is intended to improve the efficiency of the health care system and help to reduce fraud and abuse. Implementation of the NPI will eliminate the need for health care providers to use different identification numbers when conducting HIPAA standard transactions with multiple health plans.
Who gets a National Provider Identifier (NPI)?
NPIs will be assigned to health care providers who need them to submit claims or conduct other transactions specified by HIPAA. A "health care provider" is defined as an individual, group, or organization that provides medical or other health services or supplies. This includes:
physicians and other practitioners
physician/practitioner groups
institutions such as hospitals
laboratories
nursing homes
dental providers
suppliers such as pharmacies and medical supply companies and
any health care provider who transmits any health information in electronic form in connection with a standard transaction.

Exception: Health industry workers, such as admissions and billing personnel, housekeeping staff, and orderlies who support the provision of health care are not eligible to obtain NPIs.
What will the NPI look like?
The NPI will be a ten digit numeric field that will include one check digit in the tenth position to ensure accuracy. This format will permit 200 billion unique identifiers to be issued without reusing the same values. The NPI will contain NO imbedded intelligence. In other words, you will not be able to determine a provider's state, region, specialty or any other information directly from their NPI.
Click the button below to view a list of questions/answers related to HIPAA National Provider Identifier (NPI) rules and standards.