DENIAL CODES

Denial code N397

Remark code N397 indicates benefits are denied for services/items not fully provided or delivered.

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What is Denial Code N397

Remark code N397 is an indication that the claim has been processed but benefits cannot be provided because the service(s) or item(s) billed were not fully delivered or completed. This means that for the insurer to consider payment, the services or items in question must be fully delivered or completed as per the policy terms.

Common Causes of RARC N397

Common causes of code N397 are:

1. Submission of claims for services that were scheduled but not actually rendered to the patient.

2. Claims filed for medical equipment that was ordered but not delivered to the patient.

3. Documentation submitted does not sufficiently prove that the service or item was fully delivered or completed.

4. Errors in the claim form where services or items were mistakenly marked as delivered or completed.

5. Claims for partial services or items that require evidence of completion or delivery for reimbursement.

6. Miscommunication between healthcare providers and billing departments leading to premature claim submissions.

7. Technical issues or errors in electronic health records (EHR) or billing software that incorrectly flag services or items as completed.

Ways to Mitigate Denial Code N397

Ways to mitigate code N397 include ensuring that all services provided are fully completed and that any items billed for have been delivered before submitting claims. Implement a thorough review process within your billing department to verify that all services and items on a claim have been rendered and received by the patient. Additionally, maintain clear and detailed documentation of service completion and item delivery to support claims if questioned. Regular training for staff on the importance of accurate and complete documentation can also help prevent this issue.

How to Address Denial Code N397

The steps to address code N397 involve a multi-faceted approach to ensure that the services or items in question are fully delivered and documented. Initially, review the patient's record and the claim submission to verify that all services or items billed were indeed provided. If the service was partially delivered or the item was not dispensed, take the necessary steps to complete the service or deliver the item, if possible.

Next, update the patient's record and the billing system to reflect the completion of the service or delivery of the item. This may involve scheduling another appointment for the patient to complete a service or ensuring that any undelivered items are provided to the patient as soon as possible.

Once the service is completed or the item is delivered, resubmit the claim with detailed documentation supporting the completion of the service or delivery of the item. This documentation should include dates of service, a detailed description of the service or item, and any other relevant information that substantiates the claim.

If the claim was denied due to an error in the initial submission, such as incorrect coding or missing information, correct the error and resubmit the claim with a cover letter explaining the correction.

In cases where the service cannot be completed or the item cannot be delivered, communicate with the patient to discuss the situation and document the conversation in the patient's record. Depending on the circumstances, it may be necessary to adjust the bill to remove charges for services not rendered or items not delivered.

Finally, consider implementing internal processes to prevent similar issues in the future. This could include training for staff on accurate documentation and billing practices, regular audits of billing and documentation, and clear communication protocols for when services are not fully delivered or items are undelivered.

CARCs Associated to RARC N397

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