Pulmonology Billing

Maximize your reimbursements with our specialized pulmonology billing. We handle the coding of pulmonary function tests, bronchoscopy procedures, sleep medicine claims, and complex pulmonology denials through 2026.

Billing in pulmonology stands out as one of the most technically demanding specialties in managing the healthcare revenue cycle. This specialty combines diagnostic tests (pulmonary function tests, bronchoscopy, sleep studies), therapeutic interventions (mechanical ventilation, oxygen therapy, endobronchial valve implantation), and complex pulmonary rehabilitation programs, each governed by specific coding standards, insurer policies, and constantly evolving reimbursement structures. A single error in coding pulmonary function tests or in the sequence of bronchoscopy procedures can lead to claim denials, impacting the entire revenue cycle.

At MedMaxbill, Inc., we offer comprehensive pulmonology billing services designed to manage these complexities on your behalf. Our team of certified billing specialists understands the specific revenue cycle requirements of pulmonology and sleep medicine practices, from coding pulmonary function tests and bronchoscopy procedures to billing for pulmonary rehabilitation and high-cost inhalation therapy claims, ensuring your practice maximizes profit and is fully compliant with regulations in force by 2026.
 

The 2026 Pulmonology Billing Landscape: Critical Updates
 

1. New HCPCS Code for Navigation Bronchoscopy

Effective January 1, 2026, HCPCS code C7567 was added for bronchoscopy with transbronchial needle aspiration biopsy using computer-assisted image-guided navigation. This code is used with the Outpatient Prospective Payment System and represents an important addition for practices performing advanced interventional pulmonology procedures. Proper use of this code requires understanding the specific indications and the insurer's coverage instructions.


2. Rejection of APC Reassignment for Endobronchial Valve Procedure

The HOP Panel requested the reassignment of CPT 31647 (balloon occlusion bronchoscopy, air leak assessment, airway measurement, and bronchial valve(s) insertion, initial lobe) to New Technology APC 1575 to address the significant cost discrepancy between reimbursement and the cost of the procedure. CMS denied the request for 2026, maintaining the procedure under APC code 5155 (Level 5 Airway Endoscopy) with an approximate payout rate of $7,269**. The geometric mean cost of the procedure is approximately $11,385**, resulting in a substantial gap that clinics must carefully manage.


3. Medicare Standards for Pulmonary Rehabilitation: Ongoing Telemedicine Supervision

Direct virtual supervision of pulmonary rehabilitation by a physician or non-physician healthcare professional is now mandatory for both hospital outpatient departments and physician office programs. PR codes are now permanently listed in Medicare's telemedicine services list for physician office programs, requiring continuous, real-time audiovisual communication technology.


Limitations on Pulmonary Rehabilitation Billing:

  1. Medicare covers pulmonary rehabilitation for two diagnoses: COPD and sequelae of COVID-19.
  2. Up to two sessions can be billed per day, with a single co-payment for the beneficiary.
  3. Exercises must be performed during each billed session.
  4. Pulmonary rehabilitation has a lifetime limit of 72 sessions (as of January 1, 2010).
  5. Pulmonary rehabilitation is reimbursed at a higher rate in the medical fee schedule than in the hospital outpatient schedule, but the reimbursement for the hospital outpatient schedule is reduced by 60%.


4. Accuracy in the Coding of Pulmonary Function Tests

Pulmonary function tests require specific coding rules to avoid rejections. For example:

Spirometry (94010): 

When performed twice on the same date due to inconclusive results, modifier 76 is required for the second test, with thorough documentation of the medical necessity.

Bronchodilator Response (94060): 

Reported only once, as repeat spirometry is already covered in the code description.

Bronchospasm Provocation Assessment (94070): 

Can be performed multiple times, as the description allows for "multiple spirometric determinations."


5. ICD-10-CM Updates for 2026

The 2026 edition of ICD-10-CM, effective from October 1, 2025, includes code R94.2 (abnormal pulmonary function test results) with subcategories for reduced ventilatory capacity and reduced vital capacity. Proper use of this code requires an understanding of the specific abnormal findings and the clinical context.
 

Common Pulmonology Billing Challenges
 

1. Coding Pulmonary Function Tests and Medical Necessity

Pulmonary function tests require accurate documentation to establish medical necessity. Repeating tests on the same day is permitted in specific circumstances, but requires modifier 76 and detailed documentation. Generic billers often overlook these nuances, leading to denials of clinically appropriate procedures.


2. Coding Bronchoscopy Procedures

Interventional pulmonology procedures require the accurate selection of CPT codes, including the latest codes for navigation (C7567), endobronchial valve placement (31647), transbronchial needle aspiration, and diagnostic bronchoscopy. Incorrect code selection leads to denials and underpayments.


3. Sleep Medicine Billing

Sleep studies (polysomnography), CPAP therapy management, and home sleep apnea testing require prior authorization from many insurers. Facilities that lack specialized authorization teams face significant revenue losses.


4. Medicare Compliance for Pulmonary Rehabilitation

Pulmonary rehabilitation billing requires adherence to session limits (72 lifetime), accurate diagnosis coding (COPD, post-COVID-19), and documentation of exercise performance at each billed session. Generic billing providers often exceed session limits without proper modifiers or documentation.


5. Billing for Inhalation Therapy and Oxygen

Claims for high-cost medications for respiratory conditions require accurate J-codes, documentation of waste (JW modifier), and compliance with Medicare coverage policies.


6. Telehealth Billing for Respiratory Services

Because pulmonary rehabilitation codes are permanently listed under telehealth, facilities must understand the specific requirements for virtual supervision and service delivery. Doctor's office programs can provide pulmonary rehabilitation virtually, but hospital outpatient programs cannot.
 

Our Comprehensive Pulmonology Billing Services
 

Pulmonary Function Testing and Pulmonary Diagnostic Coding

We ensure accurate CPT and ICD-10 coding for spirometry, lung volume measurement, diffusion capacity testing, bronchoprovocation, and all pulmonary function diagnostics. Our team reviews documentation to determine medical necessity and applies modifiers (e.g., 76 for repeat tests) correctly.


Bronchoscopy and Interventional Pulmonology Billing

We manage billing for all bronchoscopy and interventional pulmonology procedures, including diagnostic bronchoscopy, transbronchial biopsy, bronchial valve placement (31647), and navigation bronchoscopy (C7567). Our team monitors NCCI editions and APC assignments to prevent service bundling denials.


Sleep Medicine Billing

We manage the complete sleep medicine billing workflow, including polysomnography, home sleep apnea testing (HSAT), CPAP therapy management, and pre-authorization for sleep studies.


Pulmonary Rehabilitation Billing

We monitor the number of pulmonary rehabilitation (PR) sessions against the lifetime limit of 72 sessions, ensure correct diagnostic coding for COPD and post-COVID-19, and manage billing for up to two sessions per day. Our team ensures compliance with CMS guidelines for virtual supervision and telehealth service delivery.


Pre-Authorization Management

We manage pre-authorizations for sleep studies, high-cost respiratory medications, and interventional pulmonology procedures.


Denial and Appeal Management

Each denied claim is reviewed and appealed with supporting documentation, including pulmonary function test (PFT) interpretation notes, bronchoscopy procedure records, and pulmonology session records.


Accounts Receivable Follow-up and Recovery

Our accounts receivable specialists proactively follow up on outstanding balances, including high-value interventional pulmonology claims and sleep study services.


Regulatory Compliance and Audit Support

We help you maintain audit-ready documentation and prepare for insurer audits, with particular attention to documenting the medical necessity of PFTs and tracking pulmonology sessions.
 

Why MedMaxbill for Pulmonology Billing?
 

Specialized Expertise: 

Our team understands the specific billing requirements in pulmonology, from coding pulmonary function tests (PFTs) and bronchoscopy procedures to sleep medicine and pulmonary rehabilitation.


Prepared for 2026 Regulatory Compliance: 

We stay current with all 2026 updates, including C7567, APC assignments, telemedicine rules for pulmonary rehabilitation, and changes to ICD-10 codes.


Accurate PFT Coding: 

We ensure the correct use of codes 94010, 94060, 94070, and related codes, with appropriate modifiers and medical necessity documentation.


Bronchoscopy and Interventional Coding: 

We manage the coding of complex procedures, including C7567, 31647, and related codes, in compliance with NCCI standards.


Reduced denials: 

By proactively managing PFT documentation, tracking pulmonary rehabilitation sessions, and obtaining prior authorization, we significantly reduce denial rates.


Dedicated support: 

You'll have access to a dedicated account manager who understands your practice and is available to answer questions and provide updates.
 

Partner with MedMaxbill for Pulmonology Billing Success

Billing in pulmonology demands a specialized approach. With new HCPCS codes for navigation bronchoscopy, evolving APC allocations, permanent telemedicine regulations for pulmonology patients, and complex coding requirements for pulmonary function tests, generalist billing companies often lose significant revenue and expose practices to the risk of regulatory noncompliance.

At MedMaxbill, we combine industry expertise, advanced technology, and ongoing support to ensure your pulmonology practice maximizes revenue and maintains regulatory compliance in 2026 and beyond.

Partner with MedMaxbill, Inc. and enjoy the peace of mind that comes with expert pulmonology billing services. Let us manage the complexities of billing so you can focus on what matters most: providing exceptional respiratory care.

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