Federal government sends $200 million to Indiana to support rural healthcare

Indiana has received over $200-million from the federal government to support rural health initiatives. 

The funds are the first part of a national, five-year program that was included in the massive tax and spending law passed by Congress in July.

In a statement, Governor Mike Braun said the federal funding would “help ensure that every Hoosier, regardless of where they live, has access to high-quality, sustainable healthcare.”

The $50-billion rural health initiative was added to Trump’s tax and spending bill in an effort to offset the impact of Medicaid cuts. 

But health experts say those funds are unlikely to offset the estimated $137-billion cut to Medicaid spending in rural areas over the next ten years from that same bill. 

Hospital officials in Indiana have warned that those federal cuts are likely to trigger a reduction in services, especially in more rural communities that rely more heavily on Medicaid funding. 

In response to the latest announcement of funding, Vice President of Communications with the Indiana Hospital Association Laura Kracher, said it would not be enough to support rural communities. 

“Indiana hospitals remain committed to protecting access to care and serving the health needs of all Hoosiers—but we cannot do it alone,” Kracher said. “Reimbursement reform is urgently needed to ensure hospitals can keep their doors open and maintain critical services for every community in our state.”

Indiana’s funds will be used to attract healthcare workers to rural areas, promote preventative care, and enhance access to remote care and other technologies, as well as to address infrastructure challenges. 

Braun’s press release also noted that the majority of the initiatives will be implemented statewide using grants because “local communities know their needs best.”

Contact Health Reporter Benjamin Thorp at bthorp@wfyi.org