Texas to Offer Grant to Aid Operations for Rural Operations

Over 80 hospitals in Texas currently face closure.

By Mackenna Moralez, Associate Editor

In 2023, it was revealed that over 600 rural hospitals – representing 30 percent of the hospitals in the country - were at risk of closing due to financial distress.  

Hospitals facing closure have seen a drop in patient services in recent years as health insurance plans often will not pay the cost of delivery. Meanwhile, costs driven by the state of inflation and the ongoing labor shortage have also negatively impacted on the facilities.  

According to the 2023 study, 81 rural hospitals in Texas were at risk of closing. However, the state is now working to better fund the facilities with a $17 million grant. 

The grant will be awarded to eligible hospitals to improve healthcare services to communities. The Texas Rural Hospital Financial Stabilization Grant will provide hospitals $100,000 to $375,000 over a two-year period. 

Grant awards will be based on the hospital’s financial need and can be used to: 

  • Supplement operational expenses 
  • Repay debt 
  • Make facility repairs 
  • Buy or rent equipment 

Rural Texas hospitals have until June 21 to register and apply for the grant.  

Mackenna Moralez is the associate editor for the facilities market.  

May 28, 2024

Topic Area: Maintenance and Operations

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