Government

How DSOs can navigate the government shutdown

The federal shutdown is already one of the longest in history, and despite reduced government capacity, you still need to operate like its business as usual. The question is what happens if D.C. stays dark into winter.

What’s happening: A federal shutdown has dimmed the lights in Washington, yet most of the plumbing that matters to dentistry keeps running for now. Medicaid and the Children’s Health Insurance Program (CHIP) are funded through the rest of the year, federal employees’ dental coverage continues, and the Centers for Medicare and Medicaid Services (CMS) is still running Medicare and ACA open enrollment. 

That said, some disruptions may impact dentistry. Here’s where some practices may be feeling the shutdown soon, if they aren’t already:

• Medicaid claims may be slower: While coverage will persist until at least the end of the year, eligibility help desks and some federal systems support may be slower. Claims will be processed, but longer timelines could impact your revenue cycle. With fewer live humans to resolve small problems, minor snags that would typically clear in five minutes can drag on for days. Think of it as delayed gratification—emphasis on delayed.
  

• Federal layoffs: The Trump administration’s efforts to lay off thousands of federal workers have been blocked for now, but if they eventually proceed, patients on federal employee benefit plans will lose their insurance.
  

• Federally supported access points: Community health centers operate on a mix of mandatory and discretionary funds. With some funding streams expired, cash‑flow strain is possible if the lapse drags on; local referral relationships could shift.
  

• Provider services and credentialing gridlock: With half of CMS staff furloughed, new provider enrollments and license verifications may take longer, creating credentialing delays for DSOs expanding or opening de novo sites that could postpone revenue.
  

• Economic uncertainty: The longer the shutdown drags on, the more the consequences will be felt across the economy. More uncertainty often means layoffs belt-tightening, which could impact patient volume. And even if patients aren’t impacted, they may think that “shutdown” means “no insurance.”

The looming risk: If the shutdown drags on into December, funding for Medicaid and CHIP will be at risk and reimbursements could slow or stop. DSOs with large numbers of patients covered by these programs need to keep their eye on the calendar.

What you can do: The shutdown risks for most DSOs right now are around cash‑flow timing, patient sentiment, and administrative friction, but smart preparation and tight operations can get around most of them. Here are five ideas to get you started: 

• Clear messaging: Proactively reassure Medicaid, CHIP, and federal‑employee patients: “Your dental coverage is active during the shutdown.” Train teams to cite FEDVIP and CMS facts succinctly. Publish a simple FAQ on your site.
  

• Claims hygiene blitz: Submit same‑day, attach complete diagnostics, and clear edits before transmission.
  

• Watch the calendar: Build January risk scenarios now. If Congress has not resolved funding by late December, prepare for slower state‑federal transfers.
  

• Schedule mix: Pull forward preventive and pediatric visits while benefits are certain.
  

• Vendor cash discipline: Reconfirm terms with labs and suppliers in case their federal workforces or shipping partners feel secondary effects from the shutdown. 

Bottom line: A shutdown creates turbulence, but Medicaid and CHIP dollars are still flowing today, and federal‑employee dental benefits remain intact. Now is a good time to tighten RCM, overcommunicate with patients, and scenario plan for if things get worse come January—all valuable exercises even outside of a shutdown.