TEXAS, USA — Rural hospitals can apply to get a large bump in funding after Texas Governor Greg Abbott approved the Texas Rural Hospital Financial Stabilization Grant on Wednesday with a deadline of June 21 to apply.
Up to $17 million will be awarded to rural hospitals state wide. If a hospital is approved for the grant, they would receive anywhere from $100,000 to $375,000 over the course of two years.
The money can be used in a variety of ways, such as buying or renting new equipment, repaying debts and making facility repairs.
According to the Texas Health and Human Services, the money for the grant is part of a $50 million investment in rural hospitals by the state.
“Thankfully, Texas has budget surplus and availability of funds and they just made rural health and access to care and rural communities a priority," said John Henderson, the president and CEO of the Texas Organization of Rural and Community Hospitals.
This fixation on rural hospitals comes with many of them closing their doors due to a lack of funding.
“We actually count 26 rural hospital closures in Texas since 2010, that's more than any other state. They have challenges with regard to demographics," Henderson said. "It's population that's poor which means Medicaid, older which is Medicare and less insured than suburban areas or urban areas of the state.”
With small town hospitals not having the ability to spend as much as those in the bigger cities, a little bit of extra cash could go a long ways.
“You combine that, you know, no real leverage in terms of purchasing power or contracting and not the same volumes as urban hospitals," Henderson said. "So rural hospitals are the endangered species in Texas."
There is a laundry list of qualifications if a hospital wants to get money from the grant.
The Texas Health and Human Services list the following as qualifications:
- Not be a recipient of the HHSC Texas REH Financial Stabilization Grant (Open Enrollment # HHS0014031)
- Have a current and active license
- Be the sole licensed general hospital or special hospital provider in the county
- Be licensed for 25 or fewer beds
- Meet certain indicators of financial need
- Be classified as a rural hospital as defined by the current Texas Administrative Code (TAC) Title 1, Part 15, Chapter 355, Subchapter J, Division 4, §355.8052
- Have no current vendor holds and/or pending disciplinary actions
- Agree to monthly reporting/monitoring and periodic meetings with the Office of Rural Hospital Finance and Coordination
- Submit a complete application and a two-year Financial Solvency Plan with a one-page narrative electronically via a web-based tool located at https://orhfcgrants.smapply.us.
"It's a non competitive grant, so it's not like some get it and others don't," Henderson said. "It's just a matter of how you score out on some of the financial metrics, whether you receive the low, medium or high amount.”
While some of the larger rural hospitals may meet these qualifications, Henderson predicts that out in West Texas, rural hospitals could be getting a doctor’s note for more funding.
“There are some larger rural hospitals around Austin and San Antonio and out in East Texas that actually won't qualify for the funding," Henderson said. "The rural hospitals in West Texas generally are under that bed threshold, so they'll all qualify and have access to those funds.”