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NCD 240.7 · version 1

NCD 240.7: Postural Drainage Procedures and Pulmonary Exercises

Reviewed by QuickIntell RCM Editorial Team · Last reviewed

Data effective
Data currency: Medicare Coverage Database release of September 24, 2026 (effective September 20, 2026). Next CMS release: weekly (every Thursday) for the MCD; quarterly for lab NCD code lists.

Key facts for NCD 240.7

Benefit category
Extended Care Services, Home Health Services, Incident to a physician's professional Service, Inpatient Hospital Services, Outpatient Physical Therapy Services
Effective date
09/01/1988
Transmittal
Transmittal 32
Versions published
1
Manual chapter
240
NCD Manual (Pub. 100-03)

TL;DR

NCD 240.7 sets Medicare's national policy for postural drainage procedures and pulmonary exercises under the benefit category "Extended Care Services, Home Health Services, Incident to a physician's professional Service, Inpatient Hospital Services, Outpatient Physical Therapy Services", effective 09/01/1988. In most cases, postural drainage procedures and pulmonary exercises can be carried out safely and effectively by nursing personnel. However, in some cases patients may have acute or severe pulmonary conditions involving complex situations in which these… It has been revised once since publication and binds every Medicare Administrative Contractor nationally.

Indications and limitations of coverage

In most cases, postural drainage procedures and pulmonary exercises can be carried out safely and effectively by nursing personnel. However, in some cases patients may have acute or severe pulmonary conditions involving complex situations in which these procedures or exercises require the knowledge and skills of a physical therapist or a respiratory therapist. Therefore, if the attending physician determines as part of his/her plan of treatment that for the safe and effective administration of such services the procedures or exercises in question need to be performed by a physical therapist, the services of such a therapist constitute covered physical therapy when provided as an inpatient hospital service, extended care service, home health service, or outpatient physical therapy service.

NOTE: Physical therapy furnished in the outpatient department of a hospital is covered under the outpatient physical therapy benefit.

If the attending physician determines that the services should be performed by a respiratory therapist, the services of such a therapist constitute covered respiratory therapy when provided as an inpatient hospital service, outpatient hospital service, or extended care service, assuming that such services are furnished to the skilled nursing facility by a hospital with which the facility has a transfer agreement. Since the services of a respiratory therapist are not covered under the home health benefit, payment may not be made under the home health benefit for visits by a respiratory therapist to a patient's home to provide such services. Postural drainage procedures and pulmonary exercises are also covered when furnished by a physical therapist or a respiratory therapist as incident to a physician's professional service.

Text reproduced from the CMS Medicare Coverage Database record for NCD 240.7 version 1. View the original on cms.gov.

Revision history

09/1988 - Revised section to substitute terms "respiratory therapy" and "respiratory therapist" for "inhalation therapy" and "inhalation therapist." Effective date NA. (TN 32)

How this NCD shows up on remittances

A service denied under a National Coverage Determination returns CARC 50 (not deemed medically necessary) with remark N386 (decision based on an NCD); a denial citing a local policy instead carries N115. Because NCDs bind nationally, the appeal path is documentation that the patient meets the indications above, not a contractor-policy argument.

How QuickIntell applies NCD 240.7

QuickAuth checks the ordered service and diagnosis against NCD and LCD criteria before the encounter, QuickCode validates the diagnosis pairing on the claim, and QuickRCM routes CARC 50 denials with the policy text and the covered-code list attached so the appeal starts with evidence.

Frequently asked questions — NCD 240.7

What does NCD 240.7 cover?

In most cases, postural drainage procedures and pulmonary exercises can be carried out safely and effectively by nursing personnel. However, in some cases patients may have acute or severe pulmonary conditions involving complex situations in which these procedures or exercises require the knowledge and skills of a physical therapist or a respiratory therapist. Therefore, if the attending physician determines as… The full indications and limitations are reproduced on this page from the CMS Medicare Coverage Database.

When did NCD 240.7 take effect?

The current version (1) is effective 09/01/1988, published in transmittal 32. This is the only published version.

Does a Local Coverage Determination override NCD 240.7?

No. A National Coverage Determination binds all Medicare Administrative Contractors; an LCD can only address services or circumstances the NCD leaves open. Claims denied under this NCD typically return CARC 50 with remark N386 (NCD) rather than N115 (LCD).

Sources

Every figure on this page is taken from the CMS publications below, as released by the Centers for Medicare & Medicaid Services. Projection built 2026-10-02. Verify against the primary file before billing or contracting decisions.

Disclaimer

This page reproduces the CMS National Coverage Determination text and, for laboratory NCDs, the CMS ICD-10 edit lists, as an operational reference. Coverage decisions depend on the full policy, the claim and the contractor; nothing here is legal, clinical or billing advice. CPT codes are shown as numbers only; CPT descriptors are copyright AMA.