Skip to main content

N397 Remark Code: Incomplete Service or Undelivered Item

N397 means the payer won't pay because the service was not completed or the item was not delivered to the patient. Benefits apply only once the service is finished or the item is actually delivered.

Quick facts

Code
N397 (RARC N397)
Status
Active In use since August 1, 2007.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Billing before completion or delivery is a provider issue. The amount is not billable to the patient.
Official description
Benefits are not available for incomplete service(s)/undelivered item(s).
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N397 means

Health plans generally pay for what a patient actually received. N397 is used when the payer sees that a service wasn’t finished or that an item never reached the patient. It shows up in dental prosthetics billed at preparation, DME billed before delivery, multi-stage procedures billed at the first stage, and orders cancelled after billing.

It commonly accompanies CARC 96, 203, or 112.

Common causes

  • A crown, bridge, or denture was billed on the prep or impression date instead of the delivery date.
  • Equipment was billed when ordered or shipped, but delivery failed or the item was returned.
  • A service was stopped part-way and billed as if complete.
  • A custom item was fabricated but the patient never picked it up.
  • The payer’s records show a delivery date after the billed date of service.

What to do

  1. Confirm what happened. Check the chart, delivery ticket, or tracking to see whether and when the service was completed or the item delivered.
  2. If it was completed later, correct the date of service to the completion or delivery date and submit a corrected claim with frequency code 7.
  3. If it was never completed, void the claim. Ask the payer whether it has a policy for partially completed or abandoned treatment.
  4. If it was completed on the billed date, appeal with the proof: signed delivery receipt, seating note, or procedure note.
  5. Refund any patient payment collected for a service that wasn’t provided.

How to prevent it

Tie billing to the completion event, not the start. For DME, release claims only after a signed delivery ticket or tracking confirmation is in the file. For multi-visit dental work, schedule the claim for the seating appointment.

Codes that may appear with N397

  • CO-96 (Non-covered charge(s).): Non-covered charges, used when the payer treats an incomplete service as not payable.
  • CO-203 (Discontinued or reduced service.): Discontinued or reduced service.
  • CO-112 (Service not furnished directly to the patient and/or not documented.): The service was not furnished directly to the patient or not documented.
  • N338 (Missing/incomplete/invalid shipped date.): Used when a shipped date is missing or invalid, which can call delivery into question.
  • N441 (This missed/cancelled appointment is not covered.): States a missed or cancelled appointment is not covered.
  • CO-115 (Procedure postponed, canceled, or delayed.): The procedure was postponed, canceled, or delayed.

N397 FAQ

When is a dental crown or denture considered complete?

Many dental plans consider these complete at delivery or seating, not at the preparation or impression appointment. Check the plan's rules.

What if the patient never came back for delivery?

Payer rules differ. Some allow billing for work done when a patient abandons treatment, often with documentation and specific coding. Ask the payer before billing.

Is proof of delivery required for DME?

Yes, most payers require it. A signed delivery ticket or shipping tracking record is the usual proof.