Home / Health / PA's Rural Health Plan: Billions Lost, Billions Gained?
PA's Rural Health Plan: Billions Lost, Billions Gained?
16 Feb
Summary
- Federal rural funds can't stabilize hospitals, shifting state focus.
- Pennsylvania faces $20B Medicaid loss but seeks $1B rural health funds.
- State plans innovative rural health ecosystem beyond hospital care.
Pennsylvania is set to receive close to $1 billion in federal rural health funds over the next five years, intended for innovative healthcare investments. However, this funding arrives as the state anticipates a substantial $20 billion loss in Medicaid funding between 2028 and 2038. State officials acknowledge the federal money is valuable for transformative projects but cannot compensate for the overall Medicaid deficit.
The federal rural health funds explicitly prohibit direct use for stabilizing rural hospitals. Consequently, Pennsylvania is shifting its strategy towards building a more accessible healthcare ecosystem that emphasizes clinical and community-based wraparound services. This approach aims to address socioeconomic determinants of health alongside traditional medical care.
The state's Rural Health Transformation Plan, informed by listening sessions, will utilize existing Partnerships for Regional Economic Performance to create Rural Care Collaboratives. These collaboratives will spearhead local initiatives, involving health leaders, businesses, and educators to ensure long-term sustainability beyond the initial five-year funding period.
