Texas Rural Hospital Financial Stabilization Grant Approved by Governor, Applications Now Open

The Texas Rural Hospital Financial Stabilization Grant was approved by Governor Greg Abbott on May 22, providing a much-needed lifeline for struggling rural hospitals across the state. With up to $17 million in funding available, hospitals can apply for grants ranging from $100,000 to $375,000 over a two-year period.

The grant money can be used for a variety of purposes, including purchasing new equipment, repaying debts, and making facility repairs. This funding comes as a part of a $50 million investment in rural hospitals by the state, aiming to address the financial challenges faced by these vital healthcare providers.

John Henderson, the president and CEO of the Texas Organization of Rural and Community Hospitals, expressed gratitude for the state’s prioritization of rural health and access to care. He highlighted the significant challenges faced by rural hospitals, with many closing their doors in recent years due to financial constraints.

Qualifications for the grant include being the sole licensed hospital provider in the county, having 25 or fewer beds, and meeting certain indicators of financial need. The application process is non-competitive, with funding amounts determined by financial metrics.

Henderson noted that while some larger rural hospitals may not qualify for the grant, those in West Texas are likely to benefit significantly. With rural hospitals in West Texas generally falling below the bed threshold, they are expected to have access to much-needed funds to support their operations.

The deadline for hospitals to apply for the Texas Rural Hospital Financial Stabilization Grant is June 21, offering a glimmer of hope for rural healthcare providers facing financial uncertainty.