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N262 Remark Code: Operating Provider NPI Invalid

N262 means the payer could not accept the operating provider's primary identifier, the surgeon's individual NPI. It was blank, failed validation, or did not match the payer's records for the named surgeon.

Code: N262 (RARC N262)
Status: Active In use since December 2, 2004.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): The facility must correct the NPI. The adjustment is not patient responsibility.
Official description: Missing/incomplete/invalid operating provider primary identifier.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N262 means

When a facility claim includes surgery, the payer wants to know who performed it. That person is the operating provider, identified primarily by an individual NPI in UB-04 form locator 77 or the operating physician section of the 837I. N262 tells you that NPI was not usable.

The remark usually arrives with CARC 16 or one of the NPI-specific reasons (206, 207, 208). Those tell you whether the number was missing, malformed, or unmatched; N262 tells you which role it belonged to.

Common causes

Missing surgeon data. The OR system did not pass the surgeon’s NPI to billing.
Organizational NPI used. The facility or surgery group NPI was entered instead of the individual surgeon’s.
Typo. A transposed digit breaks the NPI check digit.
Deactivated or reassigned number. The NPI is inactive in NPPES, or belongs to a different clinician than the name reported.
Enrollment gap. A newly credentialed surgeon has a valid NPI that the payer has not yet linked to an enrollment.

How to fix it

Confirm the surgeon from the operative note.
Search NPPES for that surgeon; confirm the NPI is active, individual, and matches the name.
If the payer requires the operating surgeon to be enrolled, check the payer portal. The provider enrollment guide explains common gaps.
Correct the operating provider NPI and name together, then resubmit with frequency code 7 and the original claim number.

How to prevent it

Build an edit that validates the NPI check digit and rejects Type 2 NPIs in individual-provider roles. Refresh your surgeon roster from NPPES periodically. When a surgeon’s privileges are granted, add them to billing with NPI and payer enrollment status on the same day, so their first case does not become a denial.

Codes that may appear with N262

CO-16 (Claim/service lacks information or has submission/billing error(s).): Submission error; N262 points to the operating provider NPI.
CO-206 (National Provider Identifier - missing.): The NPI was missing.
CO-207 (National Provider identifier - Invalid format): The NPI format was invalid.
CO-208 (National Provider Identifier - Not matched.): The NPI did not match the provider on file.

N261 (Missing/incomplete/invalid operating provider name.): The operating provider's name is the problem rather than the NPI.
N253 (Missing/incomplete/invalid attending provider primary identifier.): The same NPI problem for the attending provider.
N273 (Missing/incomplete/invalid other payer operating provider identifier.): Concerns the identifier a prior payer assigned to the operating provider, reported for coordination of benefits.

N262 FAQ

Can the hospital's NPI be used for the operating provider?

No. The operating provider is an individual, so the field needs the surgeon's own Type 1 NPI.

What if the surgeon isn't enrolled with the payer?

A valid NPI that isn't enrolled can still cause problems. Some payers use N262; others use an eligibility reason such as CARC B7. Either way, enrollment needs to be resolved.

Does N262 affect the whole claim?

It depends on the payer. Some deny the entire institutional claim, others only the procedure-related lines. Read the remittance to see which lines carry the remark.

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