N404Remark Code (RARC)Active
Effective 08/01/2007

N404 Remark Code: Incomplete/Invalid Facility Certification

The N404 remark code indicates that the facility certification provided is either incomplete or invalid. This remark supplements a Claim Adjustment Reason Code that already addresses an adjustment related to the facility certification issue.

How It Relates to the Denial

Typically, the N404 remark accompanies adjustment reason codes that pertain to facility certification denials or reductions. The combination signals that the payer has identified a problem with the facility's certification status, which needs resolution before payment can be processed.

Common Scenarios

1A hospital billed for inpatient services but received a denial related to facility certification on the remittance advice.
→ The N404 remark suggests that the payer found the facility's certification documentation lacking or incorrect, which contributed to the denial of the claim.
2A skilled nursing facility submitted a claim for services rendered but received an adjustment indicating the facility certification was invalid.
→ The appearance of the N404 remark indicates that the payer requires valid certification documentation to approve the claim, pointing to a need for correction.
3An outpatient clinic billed for a procedure but the payment was reduced due to an issue with the facility certification that was referenced in the remittance advice.
→ The N404 remark signifies that the facility certification was either not submitted or not valid, which directly impacted the payment adjustment.

What to Do

  1. Verify the facility's certification status with the appropriate governing or accrediting body.
  2. Gather any missing documentation that supports the facility's certification and prepare it for submission.
  3. Resubmit the claim with the corrected or complete facility certification information.

What to Check

  • The facility certification documents to ensure they are complete and valid.
  • The claim submission to confirm that the correct facility certification number was included.
  • The payer's policy regarding facility certification requirements to ensure compliance.