Billing code 32540: Lung lesion resectionMedicare rate & RVUs

Medicare pays $1,633.64 for 32540 nationally in a facility.

Medicare allowed amount for participating (non-QP) physicians, before deductible, coinsurance and claim adjustments. Not a patient’s bill or a hospital charge.

What 32540 covers

This code describes open surgery to remove a lesion from the lung, commonly a suspected or confirmed tumor. A thoracic surgeon typically performs the operation in a hospital operating room through an open chest approach. The operative report should identify the lesion and lung site, describe the resection and approach, and document the clinical reason for removal. The specific resection performed determines whether a more narrowly defined code, such as one for wedge resection or apical tumor resection, better represents the service.

CMS assigns a 90-day global period: the day-before preoperative visit and 90 days of related postoperative care are included. When multiple procedures are performed in the same session, the highest-valued procedure is paid in full and other procedures are subject to the standard multiple procedure reduction. Modifier 50 is inappropriate for this code. An assistant at surgery may be paid; co-surgeon payment requires supporting documentation, and team surgery is not permitted.

This summary was written with AI assistance from CMS physician fee schedule data and checked against the CMS billing rules shown here. Rates on this page come directly from CMS files.

Where 32540 pays more and less

The same RVUs, adjusted for each area’s costs. Open a locality for its calculation, history and nearby areas.

109 of 109 payment localities

32540 rates by state

Office rate range in each state. Select a state to see its payment localities.

How the 32540 rate is calculated

Each of 32540’s three RVUs is multiplied by a geographic index (GPCI) for the payment locality, added up, and multiplied by the conversion factor. Drag the indexes or enter a ZIP to see what moves the rate.

Payment rules and modifiers for 32540

32540 has a 90-day global period: related visits in that window are included in the surgery payment.

What modifiers do to the payment

When to use modifier 51

32540 compared with similar codes

How to choose

32505Lung wedge resection

This code is for open removal of a lung lesion when a more specific resection code is not supported. Code 32505 applies when the documented operation is a wedge resection.

32503Lung tumor resection

Code 32503 identifies resection of an apical lung tumor. Use it when that tumor location and procedure are documented rather than a general lung-lesion resection.

32504Apical tumor resection

Code 32504 describes apical lung tumor resection with chest wall involvement, a more specific operation than general lesion removal.

32666Lung wedge resection

Code 32666 describes an initial wedge resection performed thoracoscopically. This code represents open removal of a lung lesion.

Codes related to 32540

Related codes aren’t interchangeable: bill the code that matches the service performed.

Where these rates come from

FeeBase calculates base physician payments from CMS work, practice-expense and malpractice RVUs, adjusted by each locality’s geographic indexes and the conversion factor. Services without a published rate are labeled, never given a made-up amount. Amounts are Medicare allowed amounts before claim adjustments: not a patient’s bill or a commercial rate.

CMS RVU26D · effective Oct 1, 2026 through the day before Jan 1, 2027

Open CMS sourceHow we calculate rates