I don't see how I didn't notice this before, but Tango has something going on, and I'm hoping maybe some of you can give me an idea if it's a fungus or something worse.

I have an established (1year) 60 gallon tank with 5 fish. I just tested the water, PH 7, Ammonia, nitrite and Nitrate are all 0. I'm in the midst of setting up the hospital tank, but I'm unsure if I should also treat the existing tank. Hopefully you all can shed some light on what my little buddy has growing on him. poor little fat guy. Everyone else is doing good. He is swimming and eating like normal.
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It looks like a healthy wound to me
I think you could just try to keep the tank in optimal condition and feed him lots of live foods and veggies! He should recover on his own
As the wound is healing, the edges should be turning gradually from red to pink to white. It's such a small wound, that I don't think you need to stress him by moving him to a quarantine tank.

If you notice that he's getting lethargic or otherwise worse, you should quarantine him and treat with salt and hydrogen peroxide on the wound (more info here: (Link is not visible to guests. Please register to view.) ).
However, he looks strong and healthy otherwise, so I bet he'll just heal it on his own

Anchor worms are long and thin with a kind of T-shaped mouth attached to the fish. If this was an anchor worm it would be much longer