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Health care providers who are not considered covered entities may also apply and be assigned an NPI.
However, entities that do not provide health care (e.g., transportation services) are not eligible to be assigned NPIs because they do not meet the definition of "health care provider" and are not subject to HIPAA regulations.
When the NPI is implemented, covered entities will use only the NPI to identify health care providers in all standard transactions.
The Luhn algorithm was designed as a simple method to help guard against accidental keying errors.
In addition to its application in validating NPI numbers, it's also commonly used in validating credit card numbers and IMEI numbers.
Once a health care provider has been assigned an NPI, it must furnish updates to its data within 30 days of any changes.
The National Provider System (NPS), being built under a Centers for Medicare & Medicaid Services (CMS) contract, will process the applications and updates, ensure the uniqueness of the health care provider, and generate the NPIs.
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