Look up another code

N371 Remark Code: Transfer Equipment Title to Patient

N371 is an alert that the title to this equipment must be transferred to the patient. Typically this happens once the payer has made the final rental payment for an item that converts to patient ownership.

Code: N371 (RARC N371)
Status: Active In use since August 1, 2006.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): Any adjustment follows the supplier's contract. The alert creates an obligation to transfer ownership, not a patient balance.
Official description: Alert: title of this equipment must be transferred to the patient.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N371 means

Some equipment is rented only until the payer’s payments reach a set point, after which the patient becomes the owner. N371 tells the supplier that point has been reached for this item and title must pass to the patient.

The alert usually sits on a paid rental line. It doesn’t reduce payment; it tells you what must happen next.

What to do

Confirm the item and rental count so the transfer applies to the right serial number and patient.
Transfer ownership. Provide the patient with written notice that they now own the equipment, following your payer’s and state’s requirements.
Stop rental billing for this item so no further monthly claims go out.
Explain service options. Tell the patient how repairs and maintenance work now, since payers treat patient-owned equipment differently. See N372 for how maintenance charges can be limited.
Update your records so the item is no longer tracked as supplier inventory.

A recurring billing rule that ends rentals at the transfer point, plus a template transfer letter, keeps this step from being missed.

Codes that may appear with N371

CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): May appear on the final rental line with a routine fee schedule adjustment; the alert is about ownership, not the amount.

N370 (Billing exceeds the rental months covered/approved by the payer.): Says billing exceeds the rental months the payer covers or approved.
M5 (Monthly rental payments can continue until the earlier of the 15th month from the first rental month, or the month when the equipment is no longer…): Explains when monthly rental payments stop for capped rental items.
M7 (No rental payments after the item is purchased, returned or after the total of issued rental payments equals the purchase price.): Says no further rental payments are made after purchase or once rentals reach the purchase price.

N371 FAQ

What does transferring title involve?

The supplier gives the patient ownership of the equipment, usually with written notice. The patient then owns the item rather than renting it.

Can I keep billing rental after N371?

Generally no. Once title passes, rental payments stop. Payers may cover separate maintenance or repairs under their own rules.

Does the patient owe anything for the transfer?

Not because of N371. Title transfer follows payment under the rental arrangement.

Important: read before using this information

This page is general educational information about a standard industry code set. It is not medical billing, coding, legal, reimbursement, or compliance advice, and it does not create a professional or advisory relationship with ClaimsRevenue.

Code definitions, payer usage, contracts, and laws change, and payers may apply the same code differently. The information is provided “as is,” without warranties of any kind, express or implied, including accuracy, completeness, or currency. You are solely responsible for verifying it against the current official X12 code lists, CMS guidance, your payer contracts, and payer policies before relying on it, and for every billing, coding, collection, and appeal decision you make.

Using this information does not guarantee that any claim will be paid or that any appeal will succeed. To the fullest extent permitted by law, ClaimsRevenue and MOODRX LLC are not liable for any loss or damage arising from its use. Official code descriptions are published by X12 and are quoted for reference only. See our full Claims Validation Disclaimer.