The Texas Health and Human Services Commission (HHSC) has opened applications for $6.25 million to support rural-area hospitals. Applicants have until April 24 to solicit funding.
The commission anticipates issuing up to 25 grants to improve the financial stability of hospitals by issuing time-limited financial support to reduce debt. Recipients will receive up to $250,000 each. There are no match requirements for the funds.
Projects receiving awards must abide by a series of program requirements. Grantees must:
- Continue to provide hospital services without interruption to the general public.
- Use the funds for expenses or costs for goods or services to reduce debt and improve financial stability.
- Attend scheduled meetings or training and complete surveys as needed by the HHSC.
- Meet with the HHSC every two months.
- Provide additional documentation or clarification as requested by the HHSC.
- Use the funds to support activities and costs as allowed by the laws, regulations, rules and guidance governing fund use identified in the Request for Applications (RFA).
Projects are expected to start in August 2025 and continue through Aug. 31, 2026. Applicants must meet all RFA requirements and submit requested documentation to qualify.
Rural area residents suffer disproportionately from a lack of access to quality health care. Hospital closures in rural areas drastically affect their surrounding communities, leading to a loss of jobs, reduced sales tax revenue, decreasing school student numbers, impacts on the housing market, harm to local businesses and increased travel burdens.
Common reasons why rural hospitals close typically come down to:
- Declining reimbursement levels.
- Shrinking populations.
- Uncompensated care.
- Increasing operating costs.
(Photo by bidgee)
