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Pulmonology Billing Guide: Pulmonary Function Tests, Bronchoscopy, Ventilator Management, Sleep Studies, and Pulmonology RCM

By Valiant Lifecare Editorial Team·Published November 29, 2026

Direct Answer

Pulmonology billing combines diagnostic testing (pulmonary function tests, sleep studies) with therapeutic procedures (bronchoscopy, thoracentesis) and ongoing management (ventilator management, pulmonary rehab). The most billing-intensive area is diagnostic testing — PFTs and sleep studies have TC/PC billing rules, and the interpretation component requires a written report signed by the physician. Bronchoscopy coding requires selecting the correct base code plus add-on codes for each additional procedure performed (BAL, biopsy, EBUS) during the same bronchoscopy session.

Pulmonary Function Tests 94010-94070

Pulmonary function testing codes range from simple spirometry to comprehensive testing: Spirometry codes: 94010 — spirometry, including graphic record, total and timed vital capacity, expiratory flow rate measurement(s), with or without maximal voluntary ventilation; 94060 — bronchodilation responsiveness, spirometry as in 94010, pre- and post-bronchodilator administration; 94070 — multiple spirometry tracings to assess for exercise-induced bronchospasm or methacholine challenge; Lung volumes: 94726 — plethysmography for determination of lung volumes and, when performed, airway resistance; 94727 — gas dilution technique for determination of lung volumes; 94728 — oscillometry for total respiratory impedance; Diffusion capacity: 94729 — diffusing capacity, CO, single breath; 94730 — diffusing capacity, CO, multiple breath; Comprehensive pulmonary function: 94010 + 94726 + 94729 is commonly performed as a comprehensive PFT panel; each component is separately coded; 94680 — oxygen uptake, expired gas analysis; rest and/or exercise; 94681 — includes CO2 output; 94690 — rest only; TC/PC billing for PFTs: when the pulmonologist performs and interprets the PFT in their own office lab, bill the global code; when the pulmonologist interprets hospital-performed PFTs: bill with Modifier 26 (professional component only); the hospital bills the technical component; Pulse oximetry: 94760 — noninvasive ear or pulse oximetry for oxygen saturation; single determination; 94761 — multiple determinations (e.g., during exercise); 94762 — by continuous overnight monitoring (separate 12-hour period); Arterial blood gas: 36600 — arterial puncture, withdrawal of blood for diagnosis; blood gas interpretation is typically included in the E&M for inpatient patients; for outpatient ABG interpretation: 36600 for the draw plus Modifier 26 for interpretation if interpreting without performing.

Bronchoscopy Codes 31622-31654

Bronchoscopy uses a base procedure code plus add-on codes for additional procedures performed: Diagnostic bronchoscopy: 31622 — bronchoscopy, rigid or flexible, including fluoroscopic guidance, when performed; diagnostic, with or without cell washing; this is the base code for diagnostic bronchoscopy; Bronchoscopy with BAL (bronchoalveolar lavage): 31624 — bronchoscopy, rigid or flexible; with bronchial alveolar lavage; Bronchoscopy with biopsy: 31625 — bronchoscopy, with bronchial or endobronchial biopsy(s), single or multiple sites; 31629 — with transbronchial needle aspiration biopsy(s), trachea, main stem and/or lobar bronchus(i); 31632 — with transbronchial lung biopsy(s), single lobe; 31633 — with transbronchial lung biopsy(s), each additional lobe (add-on); 31628 — with transbronchial lung biopsy(s); 31640 — with excision of tumor; EBUS (endobronchial ultrasound): 31652 — bronchoscopy, rigid or flexible, with endobronchial ultrasound (EBUS) guided transbronchial sampling (e.g., aspiration biopsy[s]), 1 or 2 mediastinal and/or hilar lymph node stations or structures; 31653 — 3 or more stations (add-on); 31654 — with peripheral endobronchial ultrasound (radial probe EBUS) during the same bronchoscopic session; Navigation bronchoscopy: 31617 — bronchoscopy with bronchial thermoplasty; 31660 — bronchoscopy, rigid or flexible, with bronchial thermoplasty (asthma treatment); Coding multiple procedures: when multiple bronchoscopy procedures are performed in the same session, bill the base code for the most complex procedure and add-on codes for additional procedures; example: EBUS with transbronchial sampling of 2 stations plus BAL: 31652 + 31624; the base code (31652) already includes the standard bronchoscopy; Global period: bronchoscopy has a 0-day global period — post-procedure care on the same day is included, but visits the next day are separately billable.

Ventilator Management

Ventilator management is billed by location (hospital inpatient vs. outpatient) and by who is managing the ventilator: Inpatient ventilator management: 94002 — ventilation assist and management, initiation of pressure or volume preset ventilators for assisted or controlled breathing; hospital inpatient/observation, initial day; 94003 — hospital inpatient/observation, each subsequent day; 94004 — nursing facility, per day; these codes are billed per day when the physician personally manages the ventilator settings; Important bundling rule: 94002-94005 are bundled into the critical care codes 99291-99292 — they are NOT separately billable when critical care is billed; if ventilator management is provided on a day when critical care is billed, the ventilator management codes are included in the critical care payment; ventilator management codes are separately billable only on days when critical care is NOT billed; Ventilator weaning: there is no separate CPT code for ventilator weaning — the weaning process is included in the daily ventilator management codes; documentation for ventilator management: the note must describe: current ventilator settings (mode, FiO2, PEEP, rate, tidal volume); patient's respiratory status; assessment of readiness for weaning (if applicable); changes made to settings; Outpatient home ventilator: when a pulmonologist manages a patient on a home ventilator: E&M codes apply for outpatient visits; the ventilator equipment is DME and is managed separately through a DME supplier; E5100 — home ventilator, any type (HCPCS, billed by DME supplier, not physician).

Sleep Studies and CPAP

Sleep medicine is a major component of pulmonology practice revenue: Polysomnography codes: 95808 — polysomnography; any age, sleep staging with 1-3 additional parameters of sleep; attended by a technologist; 95810 — age 6 and older, sleep staging with 4 or more additional parameters, attended; 95811 — with initiation of CPAP therapy or bilevel ventilation, attended; attended vs. unattended: attended studies require a technologist present throughout the study; unattended studies (home sleep apnea tests) use different codes; Home sleep apnea testing (HSAT): 95800 — sleep study, unattended, simultaneous recording; heart rate, oxygen saturation, respiratory analysis; 95801 — minimum of heart rate, oxygen saturation, and respiratory analysis; 95806 — minimum of electrooculography, chin EMG, airflow, respiratory effort, oxygen saturation; MSLT and MWT: 95805 — multiple sleep latency test (MSLT) or maintenance of wakefulness test (MWT); TC/PC for sleep studies: sleep studies performed in a hospital-based sleep lab: pulmonologist bills Modifier 26 for interpretation only; hospital bills technical component; sleep studies performed in the physician-owned sleep lab: physician bills global code; Written sleep study interpretation: must include: clinical indication; study parameters recorded; sleep staging and architecture; respiratory findings (AHI, hypopnea index, respiratory events); oxygen saturation data; leg movements; interpretation and clinical correlation; CPAP device management: the pulmonologist's CPAP-related visits are billed as standard E&M; the CPAP device is DME (E0601) billed by the DME supplier; documentation for CPAP coverage: face-to-face evaluation documenting the sleep apnea diagnosis; AHI of 15 or higher, OR AHI 5-14 with symptoms (excessive daytime sleepiness, impaired cognition, hypertension, ischemic heart disease); CPAP compliance monitoring at 31-90 days; 95800 or 95801 for home sleep testing used for initial diagnosis and CPAP titration.

Pulmonology Denials and RCM

Pulmonology practices face specific denial patterns tied to diagnostic testing and procedure coding: Common pulmonology denial patterns: PFT interpretation without report: billing Modifier 26 for PFT interpretation without a signed written interpretation report in the medical record; the report must be separate from the E&M note and must include all required interpretation elements; CPAP medical necessity: CPAP DME is denied when the sleep study AHI does not meet coverage threshold; or when the face-to-face evaluation does not document the required qualifying criteria; the physician must ensure the face-to-face evaluation note explicitly addresses AHI findings and qualifying symptoms; bronchoscopy add-on code errors: billing add-on bronchoscopy codes (31624, 31625, 31633) without a base procedure code; add-on codes require the base procedure code on the same claim; ventilator management with critical care: separately billing 94002-94003 on the same day as critical care codes 99291-99292; this is a NCCI bundling error — ventilator management is included in critical care; sleep study frequency: commercial payers often limit covered sleep studies to one diagnostic study and one titration study per plan period; prior authorization is frequently required; Pulmonology RCM best practices: PFT lab quality documentation: maintain a PFT lab documentation standard that ensures every test interpretation includes all required elements; flagging tests that need physician interpretation before the encounter closes prevents lost interpretation charges; sleep center PA management: implement a PA tracking system for all sleep studies; home sleep testing (95800) has fewer prior authorization barriers than attended studies (95810) and should be the first-line study when clinically appropriate.

FAQ

What documentation is required for a pulmonologist to separately bill for pulmonary function test interpretation?

When a pulmonologist interprets pulmonary function tests performed by a technician (either in their own lab or at a hospital), the interpretation must meet specific documentation standards: Required elements of a PFT interpretation report: patient identification and date of service; clinical indication for the testing (the referring diagnosis or question); list of tests performed (spirometry, lung volumes, diffusion capacity, etc.); quantitative results with percent-predicted values for each parameter; interpretation of findings: for spirometry: FEV1, FVC, FEV1/FVC ratio with percent predicted; pattern classification (normal, obstructive, restrictive, mixed); response to bronchodilator (if pre/post performed); for lung volumes: TLC, RV, FRC with percent predicted; evidence of restriction if TLC below LLN; for DLCO: percent predicted; significance (normal, mildly/moderately/severely reduced); clinical correlation statement: relating the PFT findings to the patient's clinical situation; the interpretation must go beyond "see tracing" or simply listing numbers — it must include clinical analysis; physician signature and date; The report must be distinct from the E&M note: if the PFT interpretation is embedded within the E&M visit note, payers may consider the interpretation bundled into the E&M; best practice is a separate PFT interpretation document (even if it appears as a separate section of the electronic record); Billing implications: in the physician-owned lab, the global code (e.g., 94010) is billed — this includes both the technical and professional components; when the pulmonologist interprets hospital-performed PFTs, only Modifier 26 is billed — the hospital received payment for the technical component; an interpretation without a complete report is a documentation deficiency that can result in denial or recoupment on audit; same-day E&M and PFT: when the patient has a PFT and a separate E&M visit on the same day, both are billable — the E&M with Modifier 25 if the PFT resulted in a significant separate evaluation.

How should bronchoscopy with multiple procedures be coded when EBUS, BAL, and transbronchial biopsy are all performed?

When multiple procedures are performed during a single bronchoscopy session, the CPT guidelines use a base code plus add-on code structure: Coding hierarchy for bronchoscopy: identify all procedures performed: EBUS-guided TBNA, BAL, transbronchial biopsy; identify the highest-complexity or primary procedure (typically EBUS when performed — 31652 or 31653); select that as the base code; identify the add-on codes for all additional procedures performed; Example scenario — EBUS-TBNA of 2 lymph node stations + BAL + transbronchial biopsy: base code: 31652 (EBUS-guided transbronchial sampling, 1-2 stations); add-on: 31624 (BAL, separately reportable); add-on: 31628 (transbronchial lung biopsy, separately reportable); total codes: 31652, 31624, 31628; Why multiple add-ons are allowed: the AMA guidance for bronchoscopy explicitly states that add-on codes represent distinct procedures performed at distinct sites or with distinct techniques; BAL and transbronchial biopsy represent different techniques at potentially different locations; NCCI bundling for bronchoscopy: NCCI edits bundle certain combinations; always verify NCCI before finalizing the code set; some combinations are bundled at the column 1/column 2 level and cannot be unbundled; example: 31625 (endobronchial biopsy) and 31628 (transbronchial biopsy) are NOT bundled — they can be billed together because they are different techniques; 31622 (diagnostic bronchoscopy) IS bundled with all surgical bronchoscopy codes — when a biopsy or BAL is performed, 31622 is not separately billable (it is the base for the more complex procedure code); Modifier 59 consideration: Modifier 59 (distinct procedural service) may be appropriate when billing multiple bronchoscopy add-on codes to indicate that each was a distinct procedure at a distinct anatomic site — verify by payer.

Pulmonology Revenue Cycle Management From PFTs to Bronchoscopy to Sleep Studies

Valiant Lifecare's pulmonology billing specialists understand PFT code selection and TC/PC billing with interpretation report requirements, bronchoscopy base and add-on code selection for complex multi-procedure cases, ventilator management bundling with critical care, sleep study prior authorization, CPAP medical necessity documentation, and the RCM strategies that maximize pulmonology practice revenue.

Optimize Your Pulmonology Revenue Cycle
Valiant Lifecare Editorial Team

Pulmonology revenue cycle specialists with expertise in pulmonary function test codes 94010-94070 and TC/PC interpretation billing, bronchoscopy codes 31622-31654 including EBUS 31652-31653, ventilator management codes 94002-94005 and critical care bundling rules, polysomnography 95808-95811, home sleep testing 95800-95806, CPAP DME coverage criteria, and pulmonary rehabilitation coding.

Frequently asked

Common questions on this topic

Why does coding accuracy matter for revenue?
Coding accuracy determines whether claims are paid the first time and at the right rate. A 1-point gain in coder accuracy typically returns 1–2% in net revenue and meaningfully reduces audit exposure.
What is the audit benchmark for coding accuracy?
Most payers and OIG audits expect ≥95% coding accuracy. High-performing organisations target 97–98% with a 5% sample-rate QA process and quarterly coder recalibration.
How often should coding guidelines be reviewed?
ICD-10-CM, CPT and HCPCS code sets change annually (October and January). Coding policies and superbills should be reviewed at least quarterly, and immediately after every CMS rule cycle.
How can Valiant Lifecare help my organisation?
Our RCM, risk adjustment, HEDIS abstraction, coding and clinical analytics teams build sustainable revenue and quality programs for US health plans and providers. Talk to us about a free 30-minute consultation tailored to your data.
Where is Valiant Lifecare based?
Valiant Lifecare operates from delivery centres across the US (Delaware) and Asia Pacific (Pune, India), serving health plans, hospitals and specialty groups across the United States.

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