HOW TO: Malpractice insurance, NPI, EIN
Whoohoo, you did it! You are properly licensed, your paperwork is in place, and you’ve even made contact with a real-life lawyer!
In this blog post, we’ll cover malpractice Insurance, getting an EIN number, and setting up your NPI number.
Deep breath. You got this.
Setting Up Malpractice Insurance
Not much to know here besides, do it now. Call a few companies, let them know what you are doing, and pay for coverage. We suggest reaching out to CPH & Associates to start.
Are liability and malpractice insurance the same thing?
Malpractice insurance is essentially professional liability insurance. You’ll want to keep your personal and professional insurances separate.
Can you write off malpractice insurance?
Yes, you can write off malpractice insurance as a business expense. All of your payments towards malpractice insurance are a business expense.
Setting Up an NPI Number
Applying for an NPI is free. Doing it now will save you lots of time in the future. Here’s how to get started:
Go to NPPES
Click on: Create or manage account an account
Complete the information on the CMS website
KEEP YOUR NPI NUMBER EASILY ACCESSIBLE
How do I set up an NPI for my business?
Setting up an NPI for your business is the same as setting it up for you as an individual. You’ll get a personal NPI number which you’ll then use for your business.
What is an NPI number used for?
An NPI is a 10-digit numeric identifier. Your NPI doesn’t have any location-based information about you, therefore if you move, your NPI will always stay the same. Your NPI number is used to work with insurance providers, health care companies, electronic health records, and Superbills. It’s a MAGICAL number, used to easily identify you.
Is NPI the same as tax ID?
Your NPI number is not the same as a tax ID. You’ll use your EIN number (tax ID) for tax purposes and to collect payments. Your NPI number is used to identify you in a health care setting. Just think, NPI doesn’t involve payment.
What are the benefits of an NPI?
Your NPI allows you to have simple electronic transmission of HIPPA standard transactions. It’s a unique identifier for health care providers. And it allows for efficient coordination of benefit transactions.
Setting Up an EIN Number
Go to IRS.GOV
Follow Directions to set up your EIN.
What is a practice EIN number?
An employer identification number (EIN) is a nine-digit number assigned by the IRS used to identify the tax accounts of employers.
Does it cost money to get an EIN number?
Getting an EIN number is free from the IRS and does not cost you anything.
Should I get an EIN to set up my LLC?
We recommend doing whatever works best for you and consulting with an accountant to make sure you are setting your business up for success. That being said, in general, yes you should get an EIN to start an LLC. It’ll be helpful and you’ll also need it to set up a business bank account.
Is NPI the same as EIN?
No, NPI and EIN are not the same things. Your NPI is assigned by Health and Human Services and the EIN is assigned by the IRS. You’ll need both of these to start up a private practice, but they are not interchangeable.
Next Steps
In our next blog posts, we’ll cover how to find an accountant, getting a business license, and finally (!) opening a business bank account.
You are seriously so close to creating the private practice of your dreams.
If you have all of this in place and are looking for a website for your private practice, our Squarespace templates launch in October 2022. Getting started in private practice is totally doable, we can’t wait to see what you do!
JULIE GOLDBERG is the founder of Third Nature Therapy, a virtual therapy group offering holistic mental health care for people seeking a different perspective on wellbeing. She offers straightforward and easy to implement methods for running a successful private practice.