Denial code N371

Remark code N371 indicates that the equipment's ownership must be transferred to the patient.

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What is Denial Code N371

Remark code N371 indicates that the title of the equipment being referenced must be transferred to the ownership of the patient.

Common Causes of RARC N371

Common causes of code N371 (Alert: title of this equipment must be transferred to the patient) are:

1. Incorrect billing of durable medical equipment (DME) items where the title of the equipment should legally transfer to the patient after a certain period or upon full payment.

2. Failure to properly document the transfer of ownership in the patient's records or within the billing system.

3. Misinterpretation of payer-specific guidelines regarding the billing of DME items, leading to the assumption that the provider retains ownership.

4. Inadequate communication between the billing department and the DME provider or supplier, resulting in unclear terms of ownership transfer.

5. Errors in the electronic health record (EHR) or billing software that incorrectly flag the equipment as rental instead of a purchase that requires a title transfer.

6. Lack of understanding or oversight regarding the specific conditions under which the title of the equipment must be transferred to the patient, as dictated by payer contracts or federal regulations.

Ways to Mitigate Denial Code N371

Ways to mitigate code N371 include ensuring that the ownership documentation for the equipment in question is accurately prepared and processed in favor of the patient before the claim submission. This involves verifying that all necessary paperwork reflects the transfer of the title to the patient and is fully compliant with the billing requirements. Additionally, it's crucial to maintain clear and detailed records of the equipment transfer, including dates and parties involved, to support the claim if needed. Regular training for staff on the proper handling of equipment title transfers can also help prevent this issue from arising.

How to Address Denial Code N371

The steps to address code N371 involve a multi-faceted approach focusing on equipment ownership and patient billing. Initially, ensure that your billing team is aware of the specific equipment associated with this code and its current ownership status. Next, coordinate with your legal or compliance department to understand the implications of transferring the title of the equipment to the patient, including any necessary documentation and consent forms.

Subsequently, communicate with the patient or their representative to explain the necessity of the title transfer, the benefits to them, and any financial responsibilities or changes in billing that may arise as a result. Prepare and provide all necessary paperwork for the title transfer, ensuring it is completed accurately and in compliance with relevant regulations.

Once the transfer is finalized, update your billing system to reflect the change in equipment ownership, and adjust the patient's account accordingly. This may involve revising charges, issuing refunds, or altering future billing cycles. Lastly, document the entire process thoroughly in the patient's record and your internal systems to ensure compliance and facilitate any future audits or inquiries related to this equipment and its billing.

CARCs Associated to RARC N371

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