HIPAA–covered entities such as providers completing electronic transactions, healthcare clearinghouses, and large health plans were required by regulation to use only the NPI to identify covered healthcare providers by May 23, 2007. CMS subsequently announced that as of May 23, 2008, CMS will not impose penalties on covered entities that deploy contingency plans to facilitate the compliance of their trading partners (e.g., those healthcare providers who bill them). The posted guidance document can be used by covered entities to design and implement a contingency plan. Details are contained in a CMS document entitled, “Guidance on Compliance with the HIPAA National Provider Identifier (NPI) Rule.” Small health plans have one additional year to comply.
The NPI is a 10-position, intelligence-free numeric identifier (10-digit number). This means that the numbers do not carry other information about healthcare providers, such as the state in which they live or their medical specialty. The NPI must be used in lieu of legacy provider identifiers in the HIPAA standards transactions. As outlined in the federal regulation, The Health Insurance Portability and Accountability Act of 1996 (HIPAA), covered providers must also share their NPI with other providers, health plans, clearinghouses, and any entity that may need it for billing purposes. Ten-digit NPI numbers may be validated using the Luhn algorithm by prefixing “80840” to the 10-digit number.
The NPI is a data key that identifies a substantial portion of healthcare providers and other entities in the US, it is a frequently used data key in other data sources. For instance, the DocGraph data set is a crowdfunded open data set that details how healthcare providers collaborate to deliver care (i.e. referral patterns) that uses the NPI as its data key.