New Tax ID Needed?

February 1, 2007

I am planning to set up a movable ultrasound service for doctors’ offices. We will do billing as well. Since I already have my own practice and tax ID set up, can I use the same one or do I need to apply for another?

Question: I am planning to set up a movable ultrasound service for doctors’ offices. We will do billing as well. Since I already have my own practice and tax ID set up, can I use the same one or do I need to apply for another?

Answer: Here is a response from Owen Dahl, an experienced practice administrator and consultant:

As I understand the question,

  • The practice currently has all the appropriate tax ID and provider numbers.

  • The practice is currently offering the ultrasound service to its patients and has done the billing for it under its tax ID and provider numbers.

  • The practice, for some valid reason, is changing its approach to providing the same service. I assume there has been a cost-benefit analysis applied to this matter and the best decision for the practice is to contract these services.

There is no need to seek another tax ID or additional provider numbers, and there is no major problem related to billing procedures, barring a carrier-specific need to disclose that these services will be contracted rather than provided directly. I suggest contacting the local carrier Web site or provider representative to obtain any specific information.

There is, however, a definite need to have a valid contract in place with the ultrasound equipment vendor, with fees based upon fair market value, etc. Medicare or other payers may request to see this contract.

This is a service that was provided by the practice and will be continuing, so it should not be a difficult switch.