BIRMINGHAM, AL — The U.S. Department of Health and Human Services awarded nearly $25 million to 132 small rural hospitals across 13 states on Sept. 10, directing federal funding toward medical workforce retention and essential services as financially strained facilities seek to maintain access to care.
The awards are being distributed through the Health Resources and Services Administration’s Rural Hospital Provider Assistance Program. Hospitals can use the funding to retain physicians, nurses, and other healthcare providers and preserve emergency, inpatient, and other critical services.
HHS said rural hospitals often serve as primary sources of healthcare in their communities while facing financial pressures that can threaten continued operations. The program provides direct financial assistance intended in part to reduce the risk of avoidable hospital closures.
“We are putting these resources directly into rural hospitals so they can keep doctors and nurses on the job, protect lifesaving services, and deliver care close to home,” HHS Secretary Robert F. Kennedy Jr. said.
HRSA Administrator Tom Engels said the funding is intended to help hospitals continue providing care while supporting healthcare workers and local economies.
“Rural hospitals are lifelines for their communities, supporting local families, healthcare workers, and economies,” Engels said.
Rep. Robert Aderholt of Alabama, chairman of the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, said he had worked to advance the program through his congressional role.
The funding is intended to help participating hospitals maintain staffing and services while preserving local access to healthcare in the 13 states receiving awards.
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