What is the purpose of a NPI number

Quick Review on NPI

We’ve heard a lot of talks lately about the NPI. What is it? NPI is known as National Provider Identifier. It is a unique 10 digit number that will last forever. It can neither be changed nor exchanged. It is used to identify health care providers on a national level. This means that the NPI is recognized by all entities in the health care industry.NPI has replaced Medicare legacy numbers like UPINs and PINs (personal identification numbers). Basically, NPI is a new way of collecting your information simply by electronic transmission. NPI is a unique identification number given to the payers, employees, healthcare partners so that they can easily examine your health data.

What are the types of NPI?

There are two types of NPI and these are as follow:-

1.        Type 1

Any individual or healthcare provider who does solo practice is eligible for NPI but only one. This healthcare provider can be dentists, physicians, or any sole proprietors.

2.        Type 2

Type 2 NPI is for the organizations that are health care providers, including medical associations, hospitals, and nursing homes.

What is the NPI Number and Why it is Important?

The NPI came into existence because the Centre of Medicare and Medicaid service (CMS) wants to strengthen the HIPAA transactions and billing, healthcare transmission submitting procedure and NPI has successfully done it. The intention was to deter fraud, improve electronic transitions, and also reduces the burden.

What is the purpose of a NPI number

What is the purpose of an NPI NUMBER?

NPI came into existence with the intensions to improve the efficiency of healthcare. The other purposes of NPI are as follow:-

1.        It is helpful for billing purposes.

2.        It is also helpful in tracking the identification of multiple numbers.

3.        It is beneficial to process claims.

4.        The National Plan and Provider Enumeration System will provide you a full record of yours by entering your NPI number.


In general, the main purpose of two types of NPIs is to make things simple, easy, quick, and clear in the healthcare industry. For example, if a patient is receiving any treatment in a large hospital then the insurance company not only wants to know which particular hospital has done the patient’s treatment and with type 2 NPI they can do it, but just by typing type 1 NPI, they can identify the doctor too.



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