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CO-174 Denial Code: Not Prescribed Before Delivery

CO-174 means the service or item was not prescribed before it was delivered. The payer found an order, but its date falls after the delivery or service date, so the order does not support the claim.

Quick facts

Code
CO-174 (CARC 174)
Status
Active In use since June 30, 2005; last modified September 30, 2007.
Code set
Claim Adjustment Reason Codes (CARC)
Group codes
  • CO (Contractual Obligation): The supplier or provider carries the amount. A late order is a process failure on the provider side and is not billable to the patient.
Official description
Service was not prescribed prior to delivery.
X12 Claim Adjustment Reason Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What CO-174 means

CARC 174 reads “Service was not prescribed prior to delivery.” Payers that require an order generally require it to exist before the item is dispensed or the service performed. When the order date is after the delivery or service date, the order doesn’t support the claim.

This code mostly affects DME, prosthetics, orthotics, supplies, and other dispensed items, where suppliers sometimes deliver first and chase paperwork later.

Example: a patient leaves the hospital with a walker. The supplier delivers on Monday, and the physician signs the written order on Thursday. The payer’s policy requires the order before delivery, so the claim is denied CO-174.

Common causes

  • Delivering before the signed order is received, often to meet discharge timelines.
  • Verbal or dispensing orders not documented in a way the payer accepts.
  • Wrong date of service in box 24A, for example billing the order date as the delivery date or vice versa.
  • Renewal orders that expired before the next delivery and were renewed late.
  • Detailed written order timing requirements not met for items with stricter rules.

How to fix it

  1. Compare the dates: order signature date, delivery date, and date of service billed in box 24A.
  2. If the date of service was billed wrong, submit a corrected claim with the accurate date (resubmission code 7).
  3. If a valid earlier order exists (for example a documented verbal or dispensing order that meets policy), appeal with that documentation.
  4. If the order truly came after delivery, the claim is usually not recoverable. Write off the CO amount and do not bill the patient.
  5. For ongoing rentals, get a valid order and restart billing from the date the requirement is met, per payer rules.

How to prevent it

  • Hold delivery until a compliant order is in the file, except where policy clearly allows a dispensing order first.
  • Track order expirations for recurring supplies and rentals so renewals arrive before the next shipment.
  • Build date checks into intake that compare order date to planned delivery date.
  • Educate referral sources about the supplier’s order requirements, especially hospital discharge planners. See preventable denial causes.

Specialty notes

DMEPOS suppliers should know which items require a written order prior to delivery under their payer’s policies, as those carry the strictest timing rules.

Remark codes that may appear with CO-174

  • N331 (Missing/incomplete/invalid physician order date.): The physician order date is missing, incomplete, or invalid.
  • N57 (Missing/incomplete/invalid prescribing date.): The prescribing date is missing or invalid, so the payer could not confirm timing.
  • N456 (Incomplete/invalid Physician Order.): The order is incomplete or invalid, which may include dating problems.
  • CO-173 (Service/equipment was not prescribed by a physician.): No valid prescription at all, rather than one written too late.
  • CO-175 (Prescription is incomplete.): The prescription is incomplete, for example missing required elements.
  • CO-197 (Precertification/authorization/notification/pre-treatment absent.): Precertification or authorization was absent, another before-the-service requirement.

CO-174 FAQ

Can a backdated order fix CO-174?

No. Backdating orders is not acceptable and creates serious compliance risk. The order date must reflect when the prescriber actually signed it.

Are there exceptions for urgent deliveries?

Some payers allow a dispensing order (such as a verbal order) before delivery, followed by a detailed written order later. Rules vary by payer and item, so check the policy for the item you supply.

Is CO-174 appealable?

Only if the payer misread the dates, for example if you have a valid earlier order, a documented verbal order the policy accepts, or the delivery date was reported wrong.

Can I bill the patient for an item denied CO-174?

No. The CO group code means the supplier is responsible, and the missed order timing is a supplier-side process failure.