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CO-58 CARC

Wrong place of service for this treatment

The payer says the service should not have been done in the setting shown on the claim (for example, a procedure the payer only covers in an outpatient facility was done in the office, or the reverse).

CO = Contractual Obligation. The provider owes the difference. The patient cannot be billed for this amount. The same reason code can appear with a different group code; the group decides who may be billed.

Usual causes

  • Place of service code wrong on the claim.
  • Payer site-of-care policy requires a lower-cost setting for infusions, imaging or surgery.
  • Telehealth service done from a location the payer does not allow.

The fix

Confirm the actual setting. If the claim is wrong, correct the place of service. If the payer policy requires a different setting, appeal with the clinical reason this patient needed this one, or get prior approval for the setting next time.

Appeal or corrected claim?

Correct or appeal (see note)

Corrected claim for a wrong code; appeal when the setting was medically required.

Deadline to watch

Timely filing for corrections; appeal window per payer.

Exact limits are in your payer contract or provider manual. When in doubt, send the correction or appeal this week.

Questions

CO-58 in short

What does CO-58 mean?

The payer says the service should not have been done in the setting shown on the claim (for example, a procedure the payer only covers in an outpatient facility was done in the office, or the reverse). The official X12 text reads: "Treatment was deemed by the payer to have been rendered in an inappropriate or invalid place of service. Usage: Refer to the 835 Healthcare Policy Identification Segment (loop 2110 Service Payment Information REF), if present."

What usually causes a CO-58 denial?

Place of service code wrong on the claim. Payer site-of-care policy requires a lower-cost setting for infusions, imaging or surgery. Telehealth service done from a location the payer does not allow.

How do I fix CO-58?

Confirm the actual setting. If the claim is wrong, correct the place of service. If the payer policy requires a different setting, appeal with the clinical reason this patient needed this one, or get prior approval for the setting next time.

Should I appeal CO-58 or send a corrected claim?

Correct or appeal (see note). Corrected claim for a wrong code; appeal when the setting was medically required.

What deadline applies to CO-58?

Timely filing for corrections; appeal window per payer.