What the Federal Government Shutdown Means for Outpatient Therapy Clinics

The federal government has officially entered a shutdown following Congress’s failure to pass funding legislation for Fiscal Year 2026. While government shutdowns are unfortunately not new, their impact on healthcare providers – especially outpatient therapy clinics – can raise understandable concerns about timely reimbursement and operational continuity.

At StrataPT, our priority is to help you navigate this uncertainty with clarity and confidence. Here’s what you need to know.

How Medicare and Medicaid Are Affected

  • Medicare Fee-for-Service Payments
    Medicare claim processing and reimbursements are considered essential operations. Historically, payments have continued during shutdowns, but administrative slowdowns may still cause delays in reimbursement timing.
  • Medicaid Payments
    Medicaid programs are funded jointly by federal and state governments. Core funding will continue, but individual state Medicaid agencies may experience slower turnaround or administrative disruptions depending on staffing and federal support.
  • Telehealth and Waiver-Based ProgramsSome services that rely on temporary waivers or discretionary authority (such as telehealth flexibilities, hospital-at-home models, or other special programs) may lapse unless Congress specifically renews their authorization. Providers should prepare for possible interruptions in reimbursement for these services.
  • Administrative ServicesNew enrollments, appeals, eligibility determinations, and other “non-essential” functions may be delayed due to furloughs of CMS and HHS staff.

What This Means for Outpatient Therapy Clinics

Outpatient therapy practices – including physical therapy, occupational therapy, and speech therapy clinics – should be prepared for:

AreaExpected StatusWhat to Watch
Medicare reimbursementsExpected to continueMonitor for delays in remittance or slower claim adjudication
Medicaid reimbursementsExpected to continueWatch for state-specific guidance on payment timing
Private/commercial payersGenerally unaffectedSome payers mirror CMS processes, so delays may still occur
Telehealth & specialty programsAt risk without congressional renewalConfirm coverage before delivering services
Administrative processesDelays expectedNew enrollments, adjudication, appeals, and eligibility checks may take longer

What We’re Doing

At StrataPT, we are:

  • Actively monitoring all CMS, HHS, and state-level communications regarding payment processing, waiver renewals, and administrative guidance.
  • Analyzing reimbursement patterns in real time through our billing intelligence engine and RCM workflows to identify any slowdown in payments.
  • Communicating promptly with clients when new guidance becomes available or when we detect emerging reimbursement delays.
  • Supporting providers directly by helping identify, track, and resolve reimbursement issues during the shutdown.

What You Can Do

  • Track your payments closely: Keep a close eye on your EFT reimbursements and flag any unusual delays.
  • Stay informed: Follow state Medicaid agency updates and CMS bulletins for program-specific guidance.
  • Document issues: If you experience disruptions, maintain thorough documentation – this can support follow-ups or appeals later.
  • Lean on us: StrataPT’s RCM team is here to guide you. If you notice irregularities, contact your account representative so we can help resolve them quickly.

Federal Sources

SourceWhat It CoversLink
CMS (Centers for Medicare & Medicaid Services) – NewsroomOfficial press releases, payment updates, telehealth waivers, policy guidanceCMS Newsroom
HHS (U.S. Dept. of Health & Human Services) – Press ReleasesBroader health policy and shutdown-related contingency planningHHS News
OIG (Office of Inspector General, HHS)Alerts on audits, compliance, and enforcement (sometimes tied to shutdown resource reductions)HHS OIG Newsroom
Federal RegisterOfficial government notices including emergency rules, waivers, and shutdown-related policy shiftsFederal Register

Medicare/Medicaid Specific Resources

SourceWhat It CoversLink
Medicare Fee-for-Service Provider ResourcesClaim processing, payment timelines, shutdown contingency guidanceCMS Medicare FFS
Medicaid.gov: The Official U.S. Government Site for Medicaid and CHIP Services | MedicaidState-by-state Medicaid program updates, federal Medicaid policyMedicaid.gov
State Medicaid Agency WebsitesLocal announcements on reimbursement timing and operational delaysFind Your State Medicaid Agency

Professional & Industry Associations

SourceWhat It CoversLink
APTA (American Physical Therapy Association)Advocacy alerts, Medicare policy impact on PTsAPTA News
AOTA (American Occupational Therapy Association)Updates on billing, Medicare rules for OTAOTA News
ASHA (American Speech-Language-Hearing Association)Medicaid/Medicare updates for SLPs and audiologistsASHA Advocacy News
MGMA (Medical Group Management Association)Reimbursement operations, government relations, best practices for practice managersMGMA News

Our Commitment

Government shutdowns are disruptive, but they don’t have to derail your practice. While Medicare and Medicaid payments are expected to continue, we know delays can have real cash flow impacts on therapy providers.

We are committed to keeping you updated, advocating for clarity, and ensuring your clinic has the information and support it needs to continue delivering outstanding patient care.

We will provide updates as the situation evolves and encourage you to reach out with any concerns or questions.

Casey Peters, COO of StrataPT

Your trusted RCM & EMR partner for outpatient therapy clinics


💡 Have questions about how the shutdown could affect your reimbursements?
StrataPT’s RCM experts are here to help your clinic stay on track.

Contact us: hello@stratapt.com
Learn more: stratapt.com

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Every Sunday we’ll send you a quick and insightful email with the latest Strata Studios episode and new resources to help your clinic grow.