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N768 Remark Code: Incomplete Initial Evaluation Report

N768 means the payer received an initial evaluation report but found it incomplete or invalid. This is common for therapy and rehabilitation services, where the initial evaluation establishes the baseline, goals, and plan that justify ongoing care.

Quick facts

Code
N768 (RARC N768)
Status
Active In use since March 1, 2016.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The provider bears the adjustment until a complete evaluation report is supplied. Not patient responsibility.
Official description
Incomplete/invalid initial evaluation report.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N768 means

In therapy, rehabilitation, and some other specialties, the first visit produces an initial evaluation report. It records where the patient started, what they cannot do, what the goals are, and how treatment will reach them. Payers use it to judge whether the evaluation and the visits that follow are justified.

N768 says the payer has the report but cannot accept it as it stands. It usually pairs with CARC 251, and sometimes with CARC 50 if the gap leaves medical necessity unsupported.

Common causes

  • Goals are vague or not measurable.
  • Objective measures, such as range of motion, strength, or standardized test scores, are missing.
  • The plan of care lacks frequency or duration.
  • The report is unsigned or signed by someone not qualified to perform the evaluation.
  • The report predates the episode of care or belongs to a previous episode.

How to fix it

  1. Identify the missing element using the payer’s notes or its documentation policy.
  2. Retrieve the full signed report from the record, including any attachments like test forms.
  3. Where appropriate, the evaluating clinician can add a dated addendum; do not alter the original.
  4. Resubmit through the payer’s reconsideration process, noting any dependent claims for later visits.

How to prevent it

Use an evaluation template that requires measurable goals, objective findings, and a complete plan of care before it can be signed. Periodic peer review of evaluations helps catch gaps before payers do.

Codes that may appear with N768

  • CO-251 (The attachment/other documentation that was received was incomplete or deficient.): The documentation received was incomplete or deficient.
  • CO-50 (These are non-covered services because this is not deemed a 'medical necessity' by the payer.): The evaluation did not establish medical necessity for the services billed.
  • CO-16 (Claim/service lacks information or has submission/billing error(s).): A general missing or invalid information denial.
  • N899 (Missing Initial Evaluation Report.): The initial evaluation report is missing entirely.
  • N466 (Incomplete/invalid Physical Therapy Notes/Report.): Incomplete physical therapy notes or report, a related therapy documentation code.
  • N238 (Incomplete/invalid physician certified plan of care.): The physician-certified plan of care is incomplete or invalid.
  • N731 (Incomplete/Invalid mental health assessment.): An incomplete mental health assessment, the behavioral health counterpart.

N768 FAQ

What should an initial evaluation report contain?

Payers typically expect the reason for referral, relevant history, objective measurements, functional limitations, assessment, goals, and a treatment plan with frequency and duration, signed by the evaluating clinician.

Does N768 affect only the evaluation claim?

It can affect later visits too, because the evaluation supports the whole episode of care. Payers may hold follow-up claims until the evaluation is acceptable.

Is N768 used in workers' compensation?

Yes, it can be. Workers' compensation and other property and casualty payers often have their own evaluation report formats, so follow the jurisdiction's requirements.