This program offers financial aid to small rural hospitals with under 50 beds and low Medicare wage index to help them stay open and maintain essential healthcare services.
Funder: Health Resources and Services Administration
Due Dates (Anticipated): July 2026
Funding Amounts: $148,000 per award (typical); approx. $24.75 million total; up to 167 awards; 1-year project period
Summary: Provides direct financial support to eligible rural hospitals to sustain essential health care services and prevent closures.
Key Information: Forecasted opportunity—eligibility is strictly defined by hospital size, wage index, and rural location.
This program provides direct financial assistance to rural hospitals facing structural payment disadvantages, with the aim of maintaining essential health care services and preventing avoidable hospital closures. Eligible hospitals must have no more than 50 acute care inpatient beds, a Medicare wage index value below 0.90, and be located in a rural area as defined by the Federal Office of Rural Health Policy. The grant is intended to help sustain the health care workforce and support the ongoing provision of critical services in vulnerable rural communities.