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.
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CMS RVU26D · Effective 2026-10-01
32540 Lung lesion resection Medicare reimbursement rates in New Jersey
Reports open surgical removal of a pulmonary lesion, such as a lung tumor, when the surgeon performs the resection through a thoracic approach. Compare 32540 office and facility rates across CMS payment localities in New Jersey.
Amounts below use the non-QP conversion factor for participating physicians. These are base physician payments before claim-level adjustments, not patient costs or total hospital charges.
What does Medicare pay for 32540 in New Jersey?
New Jersey has 2 payment localities in this comparison. Use the service location to choose the applicable amount. These are the supported base rates for the 2 payment areas shown below, using the same CMS release.
Office / nonfacility
No supported rate
Facility setting
$1733.78–$1776.26
2 of 2 localities have a supported rate.
These are locality ranges, not averages or address-specific quotes. A facility-setting amount covers the physician service; it does not include a hospital’s separate bill. Choose a locality below to inspect its calculation, compare other payment areas, or price a percentage of Medicare.
Thoracic surgery
About 32540: Open resection of a lung lesion
Reports open surgical removal of a pulmonary lesion, such as a lung tumor, when the surgeon performs the resection through a thoracic approach.
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.
CMS billing rules for 32540
- Global period
- Major surgery with a 90-day global period: the day-before preoperative visit and 90 days of related postoperative care are included.
- Multiple procedures
- Standard multiple procedure reduction: the highest-valued procedure is paid in full and others at 50% when performed in the same session.
- Bilateral procedures
- Bilateral adjustment does not apply; the descriptor or anatomy makes modifier 50 inappropriate.
- Assistant at surgery
- Assistant at surgery may be paid.
- Co-surgeons
- Co-surgeons paid only with supporting documentation.
- Team surgery
- Team surgery not permitted.
Where the value comes from
- Work RVU29.59 · 60%
- Practice expense (office) RVU11.87 · 24%
- Malpractice RVU7.45 · 15%
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Medicare services in 2024 · #5320 by national volume
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.
32540 compared with similar codes
Office rates for New Jersey, from the same CMS release.
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.
Code 32504 describes apical lung tumor resection with chest wall involvement, a more specific operation than general lesion removal.
Code 32666 describes an initial wedge resection performed thoracoscopically. This code represents open removal of a lung lesion.
Compare 32540 by payment locality
Find the payment area for your service address, then open its rate page for calculation inputs, release history and the percentage-of-Medicare tool. A city may cross payment-area boundaries; the ZIP lookup above helps resolve the location.
2 of 2 payment localities
Northern Nj →
Office / nonfacility
Unavailable
Facility
$1776.26
Rest Of New Jersey →
Office / nonfacility
Unavailable
Facility
$1733.78
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32540 billing questions
How is this different from a lung wedge resection code?
Use a wedge resection code when the operative report supports that specific type of partial lung resection. This code represents open removal of a lung lesion when a more specific resection code does not describe the operation.
When should an apical tumor resection code be considered?
Consider the apical tumor codes when the documentation and operation identify resection of an apical lung tumor. The code for apical tumor resection with chest wall involvement describes a different extent of surgery.
Can modifier 50 be appended for lesions in both lungs?
No. CMS identifies bilateral adjustment as inappropriate for this code. Do not use modifier 50 to represent bilateral surgery.
Can an assistant or co-surgeon be reported?
CMS permits payment for an assistant at surgery. Co-surgeon payment requires supporting documentation; team surgery is not permitted.
What postoperative care is included?
The 90-day global period includes the day-before preoperative visit and 90 days of related postoperative care.
Where these rates come from
FeeBase calculates base physician payments from CMS work, practice-expense, and malpractice RVUs, adjusted by each locality’s geographic indices and the applicable conversion factor. Unavailable or separately priced services are labeled rather than assigned a made-up amount.
Source: RVU26D. Effective 2026-10-01 through the day before 2027-01-01.
