Rural hospital executives who once saw the federal government's $50 billion rural health fund as a lifeline now say it is not built to keep struggling hospitals open, according to reporting by STAT published Monday.
The fund, created by the 2025 budget law, spreads $50 billion over five years. That equals about 5% of the roughly $1 trillion in Medicaid cuts expected over the next decade, STAT reported. Hospital leaders say they had hoped for cash to cover care that Medicaid will no longer pay for. Instead, the money is steered toward new programs, technology, and workforce projects.