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N38 Remark Code (Deactivated): Place of Service Invalid

N38 meant the place of service on the claim was missing, incomplete, or invalid. X12 deactivated it and suggested M77, which covers a missing, incomplete, invalid, or inappropriate place of service.

X12 deactivated RARCN38 on February 5, 2005. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Code: N38 (RARC N38)
Status: Deactivated StoppedFebruary 5, 2005 (in use since January 1, 2000).
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): Paired with CO adjustments; the provider needed to correct the place of service.
Official description: Missing/incomplete/invalid place of service.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N38 meant

Professional claims include a place of service code describing where care was given, such as an office, hospital outpatient department, or the patient’s home. Remark N38 said that code was blank, incomplete, or not a valid value.

What replaced it

X12’s note suggested M77. M77 is active and adds “inappropriate” to the list, so it covers a valid code that does not fit the service. Related adjustment codes include CO-5, when the procedure is inconsistent with the place of service, and CO-58, when the payer considers the setting inappropriate.

If you still see N38

It only appears in older remittances. For a current rejection, check the encounter location, including telehealth rules and whether the patient was a hospital inpatient or outpatient at the time, then correct the place of service and resubmit.

M77 (Missing/incomplete/invalid/inappropriate place of service.): The suggested replacement: missing, incomplete, invalid, or inappropriate place of service.
CO-5 (The procedure code/type of bill is inconsistent with the place of service.): The procedure code or type of bill is inconsistent with the place of service.
CO-58 (Treatment was deemed by the payer to have been rendered in an inappropriate or invalid place of service.): Treatment rendered in an inappropriate or invalid place of service.

N38 FAQ

Why does place of service matter?

It can change payment, for example facility versus non-facility rates, and some services are covered only in certain settings.

What does M77 add that N38 lacked?

M77 also covers a place of service that is valid but inappropriate for the service billed.

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