HHS investing $75 million in rural healthcare infrastructure
The focus will be on ensuring rural communities have access to primary care, emergency services and specialty care.
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In a move designed to strengthen healthcare access and infrastructure in underserved areas, the Department of Health and Human Services has announced a $75 million investment in rural healthcare.
This initiative aims to expand healthcare services and improve the quality of care for Americans living in rural communities.
The funding, distributed through the Health Resources and Services Administration, will support the construction and renovation of rural healthcare facilities, with a particular focus on ensuring those communities have access to primary care, emergency services and specialty care.
The announcement comes as part of a broader federal effort to address healthcare disparities that have long affected rural areas, where residents often face limited access to medical care due to geographical and financial barriers.
WHAT'S THE IMPACT
The $75 million will be distributed across several programs, including the HRSA's Federal Office of Rural Health Policy and the Small Rural Hospital Improvement Program (SHIP). These funds will be used for infrastructure improvements, such as updating aging facilities, expanding telehealth services, and integrating new technologies to enhance care delivery.
Additionally, the investment will help rural healthcare providers meet increasing demand while managing financial pressures.
As rural hospitals have historically struggled with financial instability, the funding is also expected to assist these facilities in navigating the transition to value-based care. The investment is geared to support ongoing efforts to prepare rural hospitals for future healthcare challenges, such as integrating electronic health records and meeting cybersecurity standards.
A significant portion of the $75 million will be directed toward expanding telehealth services in rural areas, where broadband connectivity has historically been limited. By investing in telehealth infrastructure, HHS aims to close the digital divide in healthcare and ensure that rural patients can benefit from virtual care.
In addition to improving infrastructure and expanding telehealth, the $75 million investment will support workforce development programs aimed at addressing the critical shortage of healthcare professionals in rural areas.
According to the National Rural Health Association, 20% of the U.S. population lives in rural areas, but only 10% of physicians practice in these regions. This shortage has made it difficult for rural hospitals to recruit and retain the healthcare professionals needed to meet patient demand.
The funding will support initiatives to train healthcare workers in rural areas, with a focus on increasing the number of primary care physicians, nurses and behavioral health specialists. The administration also plans to incentivize healthcare professionals to practice in rural communities through loan repayment and scholarship programs.
THE LARGER TREND
The investment builds on previous federal efforts to improve rural healthcare, including the American Rescue Plan, which allocated billions of dollars to support healthcare facilities in underserved areas.
The latest funding also complements ongoing initiatives to improve mental health and substance use disorder treatment in rural communities, where access to these services has been particularly lacking.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
