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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9858
Experience:  30 years of corporate, litigation and international law
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We are a health care practice with several practitioners who

Customer Question

We are a health care practice with several practitioners who are licensed in multiple states. Once of the health plans we contract with pays different rates in different states, and has asked us to provide a second Tax ID number for our double-licensed docs so their (health plans) claims payment systems can pay the correct amount depending on place of service. They apparently don't have the ability to distinguish if it is all billed under a single tax ID.
Is there anything improper about such a practice. Would we have to have a separate DBA for each, would we have to establish a separate entity for each?
Thank you.
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

I assume your doctors with multi-state licenses practice in each of the sates in which they are licensed and are paid according to the state in which they see the patient. the simplest solution may be to have each of the practitioners create a single member LLC for all but one of the state states in which they operate. They can bill in their own name under their Tax ID (SS#) in one state and through the LLC which can have its own tax ID # ***** from the professional's SS#. This will add cost for forming the LLCs and the annual fees in each state but it will solve your billing problem. Since they are single member LLCs the income and expenses are put on the individual's tax return under Schedule C so you do not have to file a separate tax return for each LLC.

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Expert:  Richard - Bizlaw replied 1 year ago.

The concern I have about not using an LLC and just getting a tax ID number as a sole proprietor, is I am not sure you can use two IDs number for the same business. That is why I suggested the LLC.