Officials Spotlight Proposed Funding for Rural Hospitals

April 11, 2025

In an event this week at Penn Highlands Tyrone, Shapiro administration officials outlined the need to fund critical services and provide support to rural hospitals.

"Rural hospitals have been facing substantial cost increases for labor, drugs, supplies, coupled with inadequate reimbursement rates and ongoing staffing shortages," said Dr. Trina Abla, chief medical officer, Penn Highlands Healthcare.

Here are some key takeaways:

• Proposed funding:  The governor’s proposed budget calls for $10 million to support rural hospitals as well as a $15 million increase to the Pennsylvania Primary Care Loan Repayment program, $5 million of which would be used to incentivize health care providers to practice in rural communities.
• Crucial to communities:  Administration leaders noted the critical role rural hospitals play in both the health and economies of their communities.
  • "Rural hospitals are the lifeblood of rural communities, and so it is a wise investment to invest in health care in your communities," said Department of Human Services Secretary Dr. Valerie Arkoosh.
  • “Rural hospitals are part of the economic growth of a community," said Department of Health Secretary Dr. Debra Bogen.
• Next steps:  The state budget deadline is June 30.

Learn more about the event online.

HAP is focused on advocacy to ensure that rural hospitals can sustainably serve their communities. Learn more about HAP’s agenda to ensure all Pennsylvanians can access high-quality care.