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N787 Remark Code: PHP 20-Hour Weekly Minimum Alert

N787 is an alert citing 42 CFR 410.43: a patient eligible for a Partial Hospitalization Program (PHP) requires a minimum of 20 hours of PHP services per week, as evidenced in the plan of care, and services must follow that plan.

Quick facts

Code
N787 (RARC N787)
Status
Active In use since March 1, 2017.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): When a related adjustment appears, it is usually the provider's responsibility for not meeting program requirements.
Official description
Alert: Under 42 CFR 410.43, an eligible Partial Hospitalization Program (PHP) patient/beneficiary requires a minimum of 20 hours of PHP services per week, as evidenced in the plan of care. PHP services must be furnished in accordance with the plan of care.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N787 means

Partial hospitalization is an intensive outpatient psychiatric program for patients who would otherwise need inpatient care. Medicare regulations at 42 CFR 410.43 set eligibility conditions, including that the patient requires at least 20 hours of PHP services per week, as shown in the plan of care. N787 restates that requirement on your remittance.

As an alert, it reminds you of the rule rather than changing payment on its own.

What to do

  1. Review the patient’s plan of care to confirm it documents the need for at least 20 hours of services per week.
  2. Compare the services billed with the plan of care.
  3. If a paired CARC reduced or denied payment, gather the plan of care, attendance records, and physician certification, and request reconsideration if they support the claim.
  4. Review weekly service hours across PHP patients to spot patterns before they affect payment.

Codes that may appear with N787

  • CO-272 (Coverage/program guidelines were not met.): Coverage or program guidelines were not met.
  • CO-50 (These are non-covered services because this is not deemed a 'medical necessity' by the payer.): Services were not considered medically necessary under program criteria.
  • M141 (Missing physician certified plan of care.): The physician-certified plan of care is missing.
  • N238 (Incomplete/invalid physician certified plan of care.): The physician-certified plan of care is incomplete or invalid.
  • N42 (Missing mental health assessment.): The mental health assessment is missing.

N787 FAQ

Does N787 mean the claim was denied?

Not by itself. It is an alert. Check the paired CARC and adjustment amounts to see whether payment was affected.

What must the plan of care show?

It should show that the patient needs at least 20 hours of PHP services per week, along with the services planned. Services billed should match the plan.

What if the patient attended fewer than 20 hours in a week?

Payer rules on shortfalls vary. Document why sessions were missed, such as illness, and review the payer's PHP billing guidance.