Funding deal ends government shutdown: What it means for practices

After more than a month of operating under a partial government shutdown, federal funding has been reinstated following a narrowly approved bipartisan spending package, according to the New York Times.

For physician practices and their administrators, the reopening signals a return to some operational stability, though uncertainties remain, particularly in areas impacting billing, telehealth and Medicare reimbursement.

The federal government entered a shutdown Oct. 1 when Congress failed to pass the full slate of annual appropriations for fiscal year 2026. The funding lapse disrupted numerous agencies, triggering concern across the medical community. The Medical Group Management Association (MGMA) said the shutdown “threw medical group operations into turmoil” and delayed critical processes like claims and program renewals.

What’s in the new funding package

The Senate passed the deal by a 60-40 vote, funding the government through Jan. 30, 2026, and including several full-year appropriations bills. MGMA applauded the move in a statement, noting that the agreement “avoids further disruption to patient care and physician practice operations.” However, the association also cautioned that “significant practice-management headwinds remain” for independent practices.

The shutdown had already caused administrative slowdowns that hit smaller practices especially hard. In an earlier Physicians Practice report, experts warned that without reliable government operations, payment holds, credentialing delays and halted policy updates could “compound pressures on already thin margins.”

Key impacts for practices

For practice administrators and physician owners, several takeaways are worth noting:

• Reimbursement holds lifted: The Centers for Medicare & Medicaid Services (CMS) temporarily paused some Medicare claims during the shutdown. With funding restored, most holds have been lifted, but telehealth and hospital-at-home reimbursements could still face scrutiny as regulators catch up.
• Telehealth flexibilities remain uncertain: Pandemic-era telehealth rules that expired Sept. 30 have not yet been renewed by Congress. Without legislative action, physicians risk denied claims or billing confusion, according to a Medical Economics analysis.
• Operational uncertainty continues: The shutdown delayed federal rule-making and budget approvals tied to Medicare payment adjustments. Even with the government reopened, the ripple effects could last into mid-2026, particularly for practices dependent on CMS updates and state Medicaid contracts.

What practices should do now

Independent practices can take several proactive steps to manage the fallout:

1. Reassess telehealth compliance. Review services billed after Sept. 30 to ensure they meet current requirements, and use Advance Beneficiary Notices (ABNs) when applicable.
2. Monitor reimbursement trends. Track any delays or discrepancies in Medicare Part B and telehealth payments.
3. Communicate with staff and patients. Explain any ongoing administrative delays and emphasize continuity of care.
4. Engage advocacy partners. Stay connected with professional organizations like MGMA, the American Medical Association and specialty societies for updates on pending legislation.

The end of the government shutdown brings a sigh of relief for physicians and medical practice administrators, restoring a baseline of operational stability. But key policy decisions — from telehealth coverage extensions to Medicare payment formulas — still hang in the balance.

As MGMA noted in its Nov. 10 statement, “While the immediate crisis is over, the work ahead for physician practices has not ended.”