SF4740 (Legislative Session 94 (2025-2026))

Provider-based clinics obtaining and usage of a unique National Provider Identifier(NPI) for reimbursement claims requirement, and all-payer claims data submitted inclusion of a provider-based clinic's unique NPI requirement provision

AI Generated Summary

Purpose

  • To require provider-based clinics to obtain and use a separate, unique National Provider Identifier (NPI) for reimbursement claims.
  • To ensure all-payer claims data include the provider-based clinic’s unique NPI.
  • To make these rules part of Minnesota law by adding a new subdivision to existing statutes and creating a new statute.

Main Provisions

  • New definitions and terms:
    • Defines an “NPI” as the standard health provider identifier issued nationally.
    • Defines a “provider-based clinic” as an off-campus clinic or provider office near a hospital (located at least 250 yards from the main hospital or per CMS rules) owned by a hospital or health system, mainly providing diagnostic/therapeutic care. Clinics that exclusively provide labs, X-rays, therapy, pharmacy, or education are not considered provider-based clinics.
  • Unique NPI requirement for provider-based clinics:
    • Provider-based clinics must apply for, obtain, and use a unique NPI (distinct from the hospital’s NPI) on all claims for health services provided at the clinic.
    • The clinic’s unique NPI must appear on all reimbursement claims, no matter who files the claim (hospital central office, a healthcare clearinghouse, or an intermediary).
  • Data submission rule:
    • Data submitted under the all-payer data provision (section 62U.04) that relates to a provider-based clinic must include the clinic’s unique NPI (distinct from the hospital’s NPI).

Key Definitions

  • National Provider Identifier (NPI): The standard national health provider identifier.
  • Provider-based clinic: Off-campus clinic or provider office near a hospital, owned by a hospital or health system, focused on diagnostic/therapeutic care.
  • All-payer claims data: Data that collects health care claims from multiple payers.
  • CMS: Centers for Medicare & Medicaid Services.
  • Off-campus clinic distance rule: Clinic must be at least 250 yards from main hospital buildings (or as CMS determines).

What Changes This Bill Makes

  • Adds a new subdivision to Minnesota Statutes 62U.04 (Subd. 14) to require inclusion of the provider-based clinic’s unique NPI in all relevant data submissions.
  • Creates a new statute section 62J.825 establishing the requirements and definitions for unique NPIs used by provider-based clinics.

Practical Effects and Implementation

  • Hospitals and provider-based clinics will need to obtain separate NPIs for clinics, distinct from the hospital’s own NPI.
  • All reimbursement claims from provider-based clinics must list the clinic’s unique NPI.
  • All-payer data systems must capture and store the clinic’s unique NPI for provider-based clinic data.
  • Administrative processes may need changes to ensure claims and data submissions consistently use the clinic’s NPI.

Exclusions

  • Clinics that exclusively provide laboratory testing, X-ray testing, therapy, pharmacy, or educational services are not considered provider-based clinics under this bill.

Significance

  • Improves ability to identify and distinguish provider-based clinics from the main hospital for reimbursement and data analysis.
  • Enhances accuracy of all-payer data and may affect reporting and policy evaluation.

Relevant Terms - National Provider Identifier (NPI) - NPI (unique to provider-based clinic) - provider-based clinic - off-campus clinic - hospital NPI - all-payer claims data - 62U.04 (Minnesota Statutes) - Subd. 14 (new subdivision) - 62J.825 (new section) - data submission - CMS (Centers for Medicare & Medicaid Services) - 45 CFR 160.103 - 45 CFR 162 (NPI-related rules) - provider-based clinic exclusion categories (labs, X-ray, therapy, pharmacy, education)

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2026SenateActionIntroduction and first reading
March 23, 2026SenateActionReferred toHealth and Human Services

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds Subd.14: Unique National Provider Identifier (NPI) for provider-based clinics.",
        "Requires data submitted under 62U.04 relating to provider-based clinics to include the provider-based clinic's unique NPI distinct from the hospital's NPI."
      ],
      "removed": [],
      "summary": "Adds Subd.14 to Minnesota Statutes section 62U.04 establishing that data submitted under this section relating to provider-based clinics must include the provider-based clinic's unique National Provider Identifier (NPI), distinct from the hospital's NPI.",
      "modified": []
    },
    "citation": "62U.04",
    "subdivision": "Subd.14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Minnesota Statutes Chapter 144 in defining hospital ownership/licensing related to provider-based clinics; no direct modification to Chapter 144.",
      "modified": []
    },
    "citation": "144",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill uses Code of Federal Regulations 45 CFR 160.103 to define 'Health care clearinghouse' in its definitions.",
      "modified": [
        "Relies on federal definition of 'Health care clearinghouse' from CFR 160.103."
      ]
    },
    "citation": "45 CFR 160.103",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill uses Code of Federal Regulations 45 CFR part 162.1 to define the National Provider Identifier (NPI).",
      "modified": [
        "Relies on federal definition of NPI from CFR 162.1."
      ]
    },
    "citation": "45 CFR part 162.1",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee
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