How the Current Government Shutdown Affects the Wound Care Industry

The ongoing U.S. federal government shutdown is creating ripple effects across healthcare; including wound care clinics, home-health services, and specialty wound centers. While programs like Centers for Medicare & Medicaid Services (CMS) still operate at a minimum level, there are emerging challenges in claims processing, reimbursement timelines, telehealth access, and supply-chain stability. For wound-care providers working with chronic wounds (such as diabetic foot ulcers, venous leg ulcers, and pressure injuries), staying aware and proactive is critical.

This article explains how the shutdown may affect wound-care practices, outlines specific impacts to watch, and offers practical steps clinics can take to mitigate disruption.

What the Shutdown Means for Healthcare and Wound Care

With funding for U.S. federal agencies lapsed, many non-essential federal services are paused or operating at reduced staffing levels. For instance, the Department of Health and Human Services (HHS) plans to furlough approximately 41 % of its workforce if a funding deal isn’t reached soon. Agencies like CMS are still required to maintain essential functions (such as Medicare and Medicaid payments), but contingency staffing and temporary suspensions of oversight and processing tasks are underway.

For the wound-care industry, this translates into several potential risk zones:

1. Delay or hold in Medicare/Medicaid claims processing — which affects cash-flow in clinics heavily reliant on federal payers.

2. Uncertainty in reimbursement policies — delays in fee-schedule updates or skin-substitute coverage decisions may slow access to advanced wound treatments.

3. Telehealth and home-care coverage risk — wound-care patients often benefit from remote monitoring and home visits; if waivers or program funding lapse, access may shrink.

4. Supply-chain and regulatory disruptions — federal oversight or approvals for wound-care devices and dressings may slow, and reimbursement uncertainty may affect procurement decisions.
   
   

Specific Impacts for Wound-Care Practices

Claims Processing & Reimbursement

CMS informed its Medicare Administrative Contractors (MACs) that claims for some categories of services might be placed on temporary hold during the shutdown. Some providers reported delays of up to 10 business days for claims processing. For wound-care clinics that depend on timely payment for services such as sharp debridement, skin-substitute application, off-loading device fitting, or home-health visits, even short delays can impact cash-flow and staffing.

Telehealth & Home-Health Wound-Care Services

Many chronic-wound patients benefit from telehealth follow-up, remote monitoring, and home wound-care visits. The shutdown threatens the continuity of such services: for instance, telehealth reimbursement rules and home-care program waivers may not be extended without congressional action. Wound clinics should review whether telehealth services are still reimbursed under current statutes and prepare patients and staff accordingly.

Coverage of Advanced Wound Treatments

Wound care frequently uses advanced technologies — skin substitutes, biologics, negative-pressure wound therapy, off-loading boots and special dressings. Many of these depend on CMS coverage policies or approval of coding and reimbursement updates. In a funding-lapse environment, finalization of new coverage rules can be delayed, leaving providers in limbo about which products are reimbursable.

Supply Chain and Staffing Impacts

Federal agency slowdowns may affect device registration, shipping of supplies regulated by federal agencies, or inspection and certification of home-health agencies. Also, wound-care clinics may find some government funding, training grants, or workforce support programs delayed. While direct evidence in wound care is limited, the broader healthcare impact suggests caution.

Practical Steps for Wound-Care Providers

1. Monitor Claims and Cash-Flow

• Track submitted claims and note any delayed payments;

• Alert billing staff to potential holds or changed timelines;

• Consider maintaining a cash-flow reserve or credit line to buffer delays.

2. Communicate Clearly With Patients

• Let patients know there is uncertainty in reimbursement/timelines but assure that access to care continues;

• For patients receiving telehealth visits or home-care services, clarify whether reimbursement changes may affect scheduling or service delivery.

3. Review Telehealth and Home-Care Policies

• Confirm that current telehealth wound-care visits (video follow-ups, remote monitoring) remain reimbursed under current regulations;

• If telehealth waiver extensions are uncertain, prepare alternative in-person follow-up options for patients whose access may change.

4. Prioritize Treatments Wisely

• With advanced treatment coverage under review, wound-care providers may want to prioritise services with strong evidence and proven reimbursement;

• Document medically necessary indications for skin substitutes or biologics; keep thorough records to support future claims if reimbursement policies change later.

5. Coordinate with Payers and Contracting Entities

• Stay in contact with Medicare Administrative Contractors, state Medicaid agencies, and other major payers to understand updates;

• Review contracts with home-health agencies and device suppliers to understand termination or delay risk in the current climate.

6. Maintain Operational Flexibility

• Prepare contingency staffing plans should home-care or mobile-wound services face delays;

• Consider shifting non-critical procedures or elective wound-care visits temporarily if reimbursement uncertainty increases.

7. Document Everything

• For all wound-care treatments during this period, document date, service, payer billed, expected coverage;

• A record of delay or coverage uncertainty may prove valuable if retroactive reimbursement issues emerge once funding is restored.
  
  

What Wound-Care Patients Should Know

If you are a patient under wound-care treatment (for example, a diabetic foot ulcer, venous leg ulcer, or pressure injury), here are some practical tips:

• Stay in touch with your wound-care provider about any scheduling changes or delivery of supplies.

• If your provider uses telehealth visits, ask whether the visit remains reimbursed and whether in-person backup is available.

• Don’t delay care: chronic wounds worsen faster than many realize. Delays may increase risk of infection, hospitalization or amputation.

• Keep a personal log of your wound-care appointments, supplies received, and any communications about reimbursement or coverage changes.
  
  

Key Takeaway

While essential services like Medicare and Medicaid remain funded during the shutdown, the wound-care industry is still vulnerable to disruptions in claims processing, telehealth coverage, reimbursement of advanced wound treatments, and supply-chain stability. By proactively monitoring billing, communicating with patients, prioritising clinically essential services, and maintaining operational flexibility, wound-care clinics and home-care providers can reduce risk, protect access to care, and manage continuity through this uncertain period.

Sources

1. American Physical Therapy Association. Shutdown FAQs: What is the impact on federal payors, health care practices, and telehealth? Sept 25, 2025. https://www.apta.org/article/2025/09/25/shutdown-faqs.

2. American Hospital Association. CMS lifts claims hold on PFS, other claims amid government shutdown. Oct 21 2025. https://www.aha.org/news/headline/2025-10-21-cms-lifts-claims-hold-pfs-other-claims-amid-government-shutdown.

3. LUGPA. Policy Alert: Potential Government Shutdown, Impact on CMS Payments and Telehealth. Sept. 2025. https://www.lugpa.org/potential-government-shutdown--impact-on-cms-payments-and-telehealth.

4. AP News. Some furloughed workers will return to manage health insurance open enrollment as shutdown drags on. Oct 2025. https://apnews.com/article/20612c1e067f4f5e8803c0259e3d4cc9.

5. Axios. Government shutdown puts hospital funding in peril. Oct 2, 2025. https://www.axios.com/2025/10/02/government-shutdown-hospital-funding-medicaid.

6. Politico. Hospital-at-home program collateral damage of the shutdown. Oct 14, 2025. https://www.politico.com/news/2025/10/14/hospital-at-home-program-collateral-damage-of-the-shutdown-00602997.

7. CMS Releases Updated Guidance During Federal Government Shutdown. MHA Newsroom. Oct 2025. https://www.mha.org/newsroom/cms-releases-updated-guidance-during-federal-government-shutdown.

* This blog is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment.