ORH to Administer RHTP Transformation Awards to Rural Hospitals and Clinics

ORH is working closely with the Oregon Health Authority (OHA) and award recipients to administer Transformation Awards to the state’s rural hospitals and certified Rural Health Clinics (RHCs).

The awards, announced earlier this year, are part of Oregon’s Rural Health Transformation Program (RHTP), which dedicated $45 million to rural hospitals and clinics to strengthen access to essential healthcare services amid growing financial and operational challenges facing rural providers.

The federal budget reconciliation package, known as H.R. 1, is expected to reduce Medicaid spending over the next decade, placing additional strain on rural hospitals and clinics that often operate on narrow financial margins. 

To help offset some of the impact on rural health, the federal bill established the RHTP, a $50 billion investment in rural health nationwide.  

“We know the financial challenges facing rural healthcare providers and facilities will continue to grow in the years ahead,” said Sarah Andersen, ORH director of Field Services. 

“We appreciate OHA’s thoughtful decision to direct funding to hospitals and clinics early in the program, enabling them to invest in solutions that strengthen care and improve health outcomes in their communities.”

The Transformation Awards include:

• $35 million to each of the state’s 35 rural hospitals.
• $10 million to each of the state's 100 rural health clinics (RHCs). 

While the projects vary based on local needs, several common priorities have emerged across award recipients.

Expanding access through workforce development
Rural hospitals and RHCs are investing in the recruitment of physicians, specialists, behavioral health providers, care coordinators, nurses and support staff. Many projects include efforts to recruit hard-to-fill specialties such as OB/GYN physicians, pediatricians, orthopedic surgeons and tele-neurologists. 

Beyond recruitment, organizations are developing sustainable workforce pipelines through staff training programs, clinical education and professional development initiatives. These investments are designed to increase local access to care while reducing reliance on patients traveling long distances to receive services. 

Modernizing health information technology
Several projects focus on upgrading electronic health records (EHR) and implementing technologies that support more efficient care delivery. Planned investments include EHR enhancements, integration of laboratory and rehabilitation services, deployment of patient portals and automation of appointment systems.

These technology improvements will enable clinicians to access information more quickly, reduce manual processes, improve care coordination and support higher-quality patient care. 

Enhancing diagnostic and surgical capabilities
Funding for several projects is dedicated to clinical equipment and technology upgrades, including advanced imaging equipment, ultrasound systems, fluoroscopy units, laparoscopic surgical tools, specialty diagnostic devices and patient monitoring technology. 

These investments are expected to increase local access to specialized diagnostic and surgical services, allowing patients to receive care closer to home.

Supporting women's, maternal and pediatric health
Several projects prioritize services for women, infants and children. Planned initiatives include expanding obstetric and gynecological care, increasing pediatric service capacity, enhancing fetal monitoring capabilities, developing dedicated women's and children's health centers, and expanding access to women's behavioral health services. 

These efforts address critical healthcare needs identified in many rural communities, where access to maternity care and pediatric services can be limited. The projects are designed to support healthier pregnancies, improve preventive care and strengthen long-term health outcomes for families. 

Increasing access through telehealth
Telehealth continues to play a growing role in expanding access to specialty care. Several organizations are investing in telehealth platforms, telestroke programs, virtual nursing technologies and tele-neurology services. These initiatives will allow rural patients to access specialist expertise without leaving their communities.

Find more information on ORH’s RHTP efforts here.