N732Remark Code (RARC)Active
N732 Remark Code - Services at Unlicensed Facility
The N732 remark code indicates that the services billed were performed at a facility that is unlicensed, and therefore, these services are not eligible for reimbursement. This remark supplements a Claim Adjustment Reason Code that reflects the adjustment made due to the unlicensed status of the facility where the services took place.
How It Relates to the Denial
The N732 remark code typically accompanies adjustment reason codes that denote claim denials or adjustments based on facility licensing issues. The combination signals that the payer is refusing payment due to the provider's location not meeting required licensing standards.
Common Scenarios
1A claim for physical therapy services is submitted, but the remittance shows an adjustment for services performed at a facility that is not properly licensed.
→ In this case, the N732 remark code confirms that the payer will not reimburse the claim because the therapy was conducted at an unlicensed facility, as indicated by the accompanying reason code.
2A hospital outpatient procedure is billed, but the payer denies payment citing the use of an unlicensed surgical center.
→ The N732 remark code clarifies that the denial is due to the surgical center's lack of licensing, which is a requirement for reimbursement as indicated by the accompanying reason code.
3A claim for diagnostic imaging services is submitted from a facility that has not been granted proper licensing, resulting in a payment denial.
→ Here, the N732 remark code indicates that the imaging services are not reimbursable because they were performed at an unlicensed facility, reinforcing the denial reason provided by the accompanying code.
What to Do
- Review the licensing status of the facility where the services were performed.
- Consider resubmitting the claim with services performed at a licensed facility if applicable.
- Ensure that future claims reflect services performed at facilities that meet licensing requirements.
What to Check
- The facility's licensing documentation to confirm its status.
- The payer's policy regarding facility licensing requirements.
- The claim submission details to verify the location of service provision.