Healthcare providers, practice managers, and practice owners face a significant, recurring challenge with Reason Code N370 Exceeded Rental Months. This denial signals the billing exceeds the rental months covered or approved by the payer. Consequently, this often occurs when billing medical equipment rentals, such as oxygen or wheelchairs, surpasses the authorized rental period. Therefore, understanding the causes of Reason Code N370 Exceeded Rental Months and implementing proactive controls is essential for maximizing DME revenue.
Why Reason Code N370 Exceeded Rental Months Occurs
The Reason Code N370 Exceeded Rental Months denial confirms a lapse in monitoring the benefit period. Payers establish set limits for rental duration before they expect a purchase option or a discontinuation of the service.
| Common Cause | Explanation | Mitigation Focus |
| Exceeded Rental Period | The practice billed for rentals beyond the payer’s initial approved duration. For instance, billing for month 14 when only 13 months were approved. | Implementing automated alerts for rental period expiration. |
| Lack of Prior Verification | The practice failed to confirm the equipment rental coverage duration before claim submission. Thus, they billed past the policy limit. | Prior verification of the exact rental coverage period for every piece of equipment. |
| Rent/Purchase Guidelines Breach | The practice failed to adhere to the payer’s specific rent-to-purchase terms. Crucially, this may include not converting the rental to a purchase when required. | Thorough review of payer-specific rent/purchase rules and agreements. |
| Non-Compliance | The practice failed to follow payer guidelines for rental limits. Specifically, this includes rules for extending the rental due to medical necessity. | Internal audit and training on payer-specific rental policies and extension rules. |
| Bundling or Non-Covered Charges | The benefit for the rental service is included in another service’s payment. Alternatively, the payer deems the rental non-covered entirely. | Scrutinizing rental agreements to check for benefit bundling or exclusion. |
| Communication Gaps | Misunderstandings between the provider and payer regarding the final approved rental period. | Maintaining records of updated equipment coverage dates and approvals. |
In essence, the Reason Code N370 Exceeded Rental Months demands that the provider track the rental lifecycle meticulously and obtain new authorization when required.
8 Strategies to Eliminate Reason Code N370 Exceeded Rental Months
Eliminating this denial requires a systematic approach that integrates technology, careful monitoring, and staff education.
1. Prior Verification of Rental Duration
Always confirm the rental coverage period before submitting claims. Verify the start date, end date, and any stipulations for renewal or conversion.
2. Implement Automated Alerts
Utilize billing or EHR systems to implement automated alerts. The alerts must notify the billing team when rental periods approach expiration. This prompts timely reauthorization or conversion.
3. Thoroughly Review Rental Agreements
Scrutinize patient files and rental agreements for accuracy. Ensure that the rental period billed aligns with the approved dates and the patient’s clinical need.
4. Adhere to Payer Guideline Compliance
Ensure compliance with payer-specific rental limits and documentation requirements for extensions. Failure to follow these rules causes immediate rejection.
5. Maintain Updated Equipment Records
Keep meticulous records of updated equipment coverage dates, reauthorization approvals, and rent-to-purchase conversions. This prevents billing staff from using outdated information.
6. Conduct Internal Audit and Training
Conduct regular internal audits. Specifically, focus these audits on DME rental claims to catch administrative errors early. Train staff on denial prevention best practices.
7. Prepare Detailed Appeals Proactively
For medically necessary extended rentals, prepare detailed appeals with supporting documentation before the denial occurs. This allows for a faster appeal submission if the payer automatically denies the extension.
8. Eliminate Administrative Errors
Address administrative errors, such as incorrect dates or NPIs, immediately. Correct the documentation. Then, resubmit claims promptly to secure payment.
Stop Losing Revenue to Reason Code N370
You do not need to let Reason Code N370 Exceeded Rental Months reduce your DME revenue. By understanding the root causes of N370 denials and implementing effective strategies, healthcare providers significantly improve their billing efficiency. Our revenue cycle specialists provide comprehensive RCM solutions. We help you navigate these complex rental challenges and optimize your reimbursement.
Contact us today to learn more about how our expertise can support your practice.
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