HHSC Highlights Efforts to Strengthen Rural Hospitals on National Rural Health Day

News Release
Texas Health and Human Services Commission
Cecile Erwin Young
HHS Executive Commissioner
Emily Hummel, 512-424-6951

AUSTIN – The Texas Health and Human Services Commission is observing National Rural Health Day today by recognizing work to support the state’s rural hospitals.

Since its inception in September 2023, the HHSC Rural Hospital Finance and Coordination office has awarded $19.3 million in grants to rural hospitals to improve maternal care and reduce debt burdens that threaten their ability to continue serving their communities.

"Ensuring the health and well-being of Texans remains a top priority," said Gov. Greg Abbott. "In the last year, the State of Texas provided more than $19 million in grant funding to help ensure that Texans in every corner of the state have access to the quality health care services they need and deserve. The grant funding helps the more than 100 rural facilities purchase the training and equipment they need to support Texans. I thank the Texas Health and Human Services Commission for their hard work to expand health care access in our rural communities. Together, we will build a healthier, stronger Texas."

During the 88th Texas Legislative Session, Gov. Abbott and state lawmakers appropriated $50 million for the Rural Hospital Grant Program, which is administered by the Rural Hospital Finance and Coordination office. Through the program, HHSC has issued grants supporting 108 rural hospitals.

Two types of grants have been issued to rural hospitals. The Maternal Care Operations Grant provides funding to purchase neonatal equipment and training for emergency labor and delivery services, and the Rural Hospital Financial Stabilization Grant provides funding for rural hospitals to pay down or retire debt.

"HHSC remains dedicated to providing assistance to the rural hospitals that do the important work every day of serving Texans and ensuring they have access to high-quality care," said Cecile Erwin Young, HHS executive commissioner.

More grants will be awarded to rural hospitals through 2025. For information about upcoming grants, sign up for email updates or visit the Rural Hospital Finance and Coordination website.