Rural health care providers will be receiving federal dollars to ease the financial burden caused by the COVID-19 pandemic. | stock photo
+ Regulatory
Bree Gonzales | Dec 1, 2021

U.S. rural health care providers receive $7.5 billion due to costs 'unique only to rural providers'

The U.S. Department of Health and Human Services (HHS) has started to distribute a large amount of financial support to rural health care providers, according to a report by The New York Times.

Through the Health Resources and Services Administration, HHS commenced the distribution of $7.5 billion in American Rescue Plan rural payments to those providers who are serving Children's Health Insurance Program (CHIP), Medicaid and Medicare beneficiaries.

“When it comes to a rural provider, there are a number of costs that are incurred that sometimes are different from what you see with urban providers or suburban providers,” Secretary of Health and Human Services Xavier Becerra told The New York Times. “And oftentimes, they’re unique only to rural providers.”

Health care providers in every state and six U.S. territories will be given money to help with rural health care, thanks to the American Rescue Plan.

The allocation of billions of dollars is intended to help rural hospitals remain open and improve the quality of services. The New York Times reports that 21 rural hospitals have closed since the beginning of 2020.

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