What is an NPI Number and Why Does it Matter?
A simple, step-by-step guide for therapists, coaches, and health providers who want to set up a legitimate, long-term practice.
For the next few weeks, I’ll be walking us through each step of my Quick Checklist to Starting a Private Practice. You can find articles on past steps here.
Starting a private practice involves learning a whole lot of new acronyms, LLCs, EINs, NPIs. It’s a lot. There were often moments where I felt like I was missing something and didn’t know what was and wasn’t necessary to get my business up and running.
If you’re here, you’ve probably heard about an NPI number. Maybe you’re not sure what it is, or whether you even need it.
But here’s the good news: getting your National Provider Identifier (NPI) is one of the simplest steps in the whole process. It’s free, takes less than 10 minutes, and unlocks access to systems and referrals you’ll likely need down the road.
This post breaks it down step-by-step. What it is, why it matters, and exactly how to get one.
First, What Is an NPI?
An NPI is your National Provider Identifier, a unique 10-digit number issued by the Centers for Medicare & Medicaid Services (CMS). It follows you throughout your clinical career.
Think of it as your social security number for your identity as a healthcare provider.
You need it if you plan to:
Get credentialed with insurance panels
Provide Out-of-Network (OON) superbills
Bill insurance (either directly or through third-party platforms like Alma or Headway)
Use some credit card processing platforms (more on this soon)
Refer or be referred to by other providers
Be listed in directories
Look like an official and licensed provider
Even if you’re private-pay only right now, getting your NPI is free, easy, and signals that you're building something that can grow. I use my NPI often, despite being private pay, for things like providing superbills, writing accommodation letters, and even just charging my clients’ credit cards.
How to Apply for Your NPI (Step-by-Step) and What Type
Don’t worry, this takes 10–15 minutes max. Grab a cup of coffee, pull up a tab, and let’s do this together.
Step 1: Go to the official website
This is the National Plan and Provider Enumeration System (NPPES). Don’t fall for lookalike sites. That’s the real one.
Step 2: Click “Create or Manage an Account”
If you’ve never applied before, you’ll select Create an Account under the "Identity & Access Management System (I&A)" portal. This is where you’ll manage your NPI later if you ever need to update anything.
Follow the prompts to register. You’ll need a valid email address.
Step 3: Log in and apply for a Type 1 or Type 2 NPI
There are two types of NPIs:
Type 1 = Individual providers (this is what you need if you’re going solo)
Type 2 = Organizations or group practices (you can always apply for this later if needed)
Click “Apply for an NPI”, and choose Type 1. Even if you need a Type 2 NPI for a group practice, make sure you also have an individual NPI (Type 1) as your own unique identification number.
Step 4: Fill in your information
Here’s what you’ll need:
Your full legal name
Date of birth
SSN (or EIN if applying under a business name later)
Register for your EIN through the IRS in minutes here.
Your license information (state and license number)
Your business address (can be your practice address or even a virtual business address like iPostal1 or PO box if you’re not ready to use your home address)
Optional: Add your taxonomy code. For most therapists, this is 101YM0800X (Mental Health Counselor), but you can browse codes by profession here: taxonomy lookup tool
Step 5: Submit and save your confirmation
Once you hit submit, you’ll get a confirmation screen and (eventually) an email with your official NPI number. It can show up immediately, or take up to 24 hours.
FAQ
Do I need to apply again if I move or change jobs?
Nope. Your NPI follows you forever. You just update your info in the system.
Can I use a business address instead of my home?
Yes, and I recommend it if privacy is important. You can update your address anytime.
Can I bill insurance without one?
No. Your NPI is required for insurance billing (even OON superbills), and through platforms like Alma or Headway.
Recap
Your NPI is your professional ID number
You need a Type 1 NPI if you’re an individual provider
You can apply for Type 2 (group practice) at any time
The process is free and fast (under 15 minutes)
You can apply here
It’s a small step that is incredibly important for you to start making money
Want help with the other private practice setup steps?
I’m writing a whole series on the steps to starting a private practice.
Next up: Getting credentialed with insurance companies. How to know if it’s the right move for you.