Why rural healthcare fund’s $50B focus on tech upgrades may not help vulnerable hospitals and providers |
Healthcare across rural America is in crisis.
In the past two decades, close to 200 rural hospitals have closed – 44 since 2020 alone. Hundreds more have cut much-needed health services, such as maternity care and chemotherapy treatments. Nearly half are losing money on their day-to-day operations, putting them at risk of closure.
Most regions in rural America are designated as areas that lack sufficient healthcare providers.
In 2025, the federal government launched a five-year, US$50 billion program – the Rural Health Transformation Program – to help modernize rural healthcare delivery in all 50 states.
This money is certainly much needed. As a longtime rural policy advocate and researcher, I am well aware of the ongoing barriers that prevent rural hospitals and providers from delivering high-quality care.
However, I fear that the program is too focused on making expensive and unsustainable technology upgrades that will still leave rural hospitals and health providers holding the bill for basic local infrastructure they often can’t afford. In addition, a disproportionate focus on technology runs the risk of overlooking the most basic needs of rural healthcare systems, such as ensuring that rural areas have a healthy healthcare workforce – and providers that get paid for the work they do.
Uphill battle for rural healthcare dollars
The Rural Health Transformation Program was launched as part of the tax and spending package signed into law by President Donald Trump in........