HHSC announces nearly $160M combined investment in rural healthcare

The Texas Health and Human Services Commission (HHSC) has opened the window for two funding opportunities worth a combined $159 million to improve rural healthcare programs and workforce. 

Both funding notices – known as the “Next Generation of the Small Town Doctor and Team” and “Make Rural Texas Healthy Again” initiatives – are folded into the comprehensive Rural Texas Strong plan. Rural Texas Strong is the state’s federally funded plan to support rural community healthcare across six initiatives. 

The Next Generation opportunity will distribute a total of $99 million to rural hospitals, creating incentives to attract clinicians to rural communities. Applications are due May 27. The HHSC may select projects that: 

• Create scholarships and programs for local high school students to pursue healthcare careers. 
• Offer relocation or signing bonuses for providers. 
• Establish new residency training programs, including partnering with academic institutions. 

While recruitment is the most prominent component of the program, the state includes requirements to retain existing clinicians as well. Providers and community leaders – local economic development corporations, local governments, philanthropic partners and schools – will also need to develop and update a healthcare worker retention plan and execute retention strategies. The HHSC will prioritize providing a minimum of one ward per rural county, specifying governmental, non-profit or privately-held recipients headquartered in Texas. 

The HHSC will also distribute $60 million through the Make Rural Texans Healthy Again program. The funds will help support rural hospital districts that prioritize prevention, wellness and nutrition programs targeting chronic disease conditions. Qualifying districts may use the funds to: 

• Open community wellness centers with exercise and nutrition classes. 
• Support grocery stores, farmers’ markets or local food pantries. 
• Establish after-house primary care clinics to reduce non-urgent visits to emergency departments. 
• Provide low- or no-cost chronic disease screenings and primary care visits. 
• Increase access to pharmacies, healthy grocery stores and healthcare appointments through transportation support. 
• Establish care systems for active remote monitoring for high acuity patients. 
• Use technology to help qualifying residents research and enroll in health coverage options. 

Chronic diseases – including diabetes, cardiovascular disease, chronic respiratory disease and obesity – disproportionately impact rural communities that lack access to healthcare options and healthy food sources. The Make Rural Texas Healthy Again initiative will transform healthcare accessibility and food system availability in disconnected communities. 

Texas officials anticipate that the state will receive roughly $1.4 billion over the next five years to support the Rural Texas Strong Plan. The funding is part of a nationwide effort to support rural communities through the Centers for Medicare and Medicaid Services’ $50 billion Rural Health Transformation Program. 

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