Reason Code N370: Avoid Denials by Managing Equipment Rental Periods

Reason code N370, “Billing exceeds the rental months covered/approved by the payer,” is a common stumbling block for healthcare providers. This denial often arises when medical equipment rentals surpass the authorized rental period. For instance, oxygen equipment might be billed for more months than initially approved.

Common Causes of N370 Denials

Several factors can lead to N370 denials:

• Lack of Prior Verification: Failure to confirm the equipment rental coverage duration before claim submission.
• Bundling: The benefit for the rental service might be included in another service’s payment.
• Non-Covered Charges: The payer might deem the rental as non-covered.
• Rent/Purchase Guidelines Breach: The rental or purchase terms may not have been adhered to.
• Exceeded Rental Period: Billing for rentals beyond the approved duration.
• Communication Gaps: Misunderstandings between the provider and payer regarding the rental period.
• Administrative Errors: Mistakes in claim processing or documentation.
• Non-Compliance: Failure to follow payer guidelines for rental limits.

Strategies to Prevent N370 Denials

1. Prior Verification: Always confirm the rental coverage period before submitting claims.
2. Thorough Review: Scrutinize patient files and rental agreements for accuracy.
3. Automated Alerts: Implement systems to notify the billing team when rental periods approach expiration.
4. Payer Guideline Adherence: Ensure compliance with payer-specific rental limits.
5. Appeal Preparation: For medically necessary extended rentals, prepare detailed appeals with supporting documentation.
6. Error Elimination: Address administrative errors and resubmit claims.
7. Record Maintenance: Keep records of updated equipment coverage dates.
8. Internal Audit and Training: Conduct regular audits and train staff on denial prevention.

Partnering with Claims Med

By understanding the root causes of N370 denials and implementing effective strategies, healthcare providers can significantly reduce revenue loss and improve their billing efficiency. Claims Med offers comprehensive revenue cycle management solutions to help you navigate these challenges and optimize your reimbursement.

Contact Claims Med: Reach out to Claims Med for tailored assistance in addressing N370 denials and improving your revenue cycle management. Our experts provide comprehensive revenue cycle management solutions to help healthcare providers reduce denials and maximize reimbursements.