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N240 Remark Code: Incomplete or Invalid Radiology Report

N240 means the radiology report submitted for the imaging service was incomplete or invalid. It may be unsigned, missing findings or an impression, or describing a different study, date, or body part than billed.

Quick facts

Code
N240 (RARC N240)
Status
Active In use since August 1, 2004.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The imaging service was denied or held for documentation. The provider sends a valid report; the patient is not liable.
Official description
Incomplete/invalid radiology report.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N240 means

For imaging services, the radiology report is the proof that the study was performed and interpreted. N240 means the report was received but did not support the claim. The problem can be the report itself, such as a missing signature, or a mismatch between the report and the claim. N240 usually explains CARC 252.

Common problems

  • The report is preliminary or unsigned.
  • The exam described does not match the code billed, such as contrast versus non-contrast, or the number of views.
  • Laterality in the report differs from the RT or LT modifier on the claim.
  • The report has no clinical indication, making medical necessity hard to assess.
  • It belongs to a different date of service.

How to fix it

  1. Obtain the final, signed report from the reading radiologist or imaging center.
  2. Compare it to the claim’s code, modifiers, units, and date. Where the claim is wrong, submit a corrected claim with resubmission code 7 in box 22.
  3. If the report omits something that was done, ask the radiologist for a dated addendum.
  4. Send the report through the payer’s attachment channel, including the order if medical necessity is at issue.

How to prevent it

Bill imaging only after the final report is signed, and use code-to-report matching edits for contrast, views, and laterality. Include clinical indications on orders so they flow into the report.

Codes that may appear with N240

  • CO-252 (An attachment/other documentation is required to adjudicate this claim/service.): Documentation, the radiology report, is required.
  • CO-50 (These are non-covered services because this is not deemed a 'medical necessity' by the payer.): The payer could not confirm medical necessity from the report.
  • CO-4 (The procedure code is inconsistent with the modifier used.): The procedure and modifier are inconsistent, for example laterality or component modifiers that the report does not support.
  • M31 (Missing radiology report.): The radiology report was missing entirely.
  • N242 (Incomplete/invalid radiology film(s)/image(s).): The radiology films or images were incomplete or invalid.
  • N200 (The professional component must be billed separately.): The professional component must be billed separately.

N240 FAQ

What must a radiology report include?

Generally patient identifiers, date of service, the exam performed, clinical indication, technique, findings, impression, and the interpreting physician's signature.

Can the ordering physician's note substitute for the radiology report?

No. The payer wants the interpreting physician's formal report, though the order may also be needed to show medical necessity.

What if the report lists fewer views than billed?

Correct the claim to reflect what the report documents, or have the radiologist add an addendum if the report omitted views that were actually performed.