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    Home»Legal»Without Clear Strategy, CMS’ $50B Rural Hospital Fund Risks Falling Short
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    Without Clear Strategy, CMS’ $50B Rural Hospital Fund Risks Falling Short

    onlyplanz_80y6mtBy onlyplanz_80y6mtAugust 27, 2025No Comments3 Mins Read
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    Photo: Gary Yeowell, Getty Images
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    The One Huge Stunning Invoice Act’s new $50 billion rural hospital fund is a constructive step towards advancing rural well being infrastructure — however short-term injections of money received’t repair deeply rooted systemic challenges, one knowledgeable identified.

    “Cash will not be the one reply,” stated Jason Griffin, managing director at consulting agency Nordic International.

    Throughout his time at Nordic, Griffin has labored alongside organizations like Microsoft and CHIME to assist modernize rural hospitals’ IT infrastructure and broaden the usage of digital well being instruments amid ongoing workforce and reimbursement challenges. 

    He is aware of that rural suppliers’ stability is deeply threatened by looming Medicaid cuts. Whereas last-minute funding was added as a stopgap, Griffin famous it’ll solely cowl about 37% of those suppliers’ potential losses over the subsequent 5 years.

    Sooner or later, he stated he wish to see federal and state governments put money into infrastructure — comparable to dependable broadband connectivity and secure EHR programs — as a substitute of leaving rural hospitals to shoulder prices.

    Higher infrastructure would allow sustainable telehealth and value-based care, Griffin added.

    Federal and state funding also needs to assist healthcare workforce improvement in rural communities, together with partnerships with universities and medical coaching applications, he said.

    “All of that actually can be wanted to assist long-term sustainability with that money injection. I imply, we will spend some huge cash, after which 5 years from now, be in the identical boat,” Griffin remarked.

    Cybersecurity is one space the place rural hospitals’ staffing challenges are particularly acute, he famous — stating that these suppliers typically have solely 4 or 5 individuals of their IT departments

    Most rural suppliers wrestle to handle third-party threat, which is now a number one reason for healthcare knowledge breaches, Griffin stated.

    “Prolonged downtime, even over per week, can shut your group down completely. And we’ve seen these breaches trigger as much as 5 – 6 weeks of downtime — and it simply can’t be sustained,” he declared.

    Rural hospitals should continuously select between investing in medical gear or cybersecurity —  which is a burden city hospitals don’t face, Griffin added.

    He additionally famous that there are not any necessities for state-by-state reporting or for measuring outcomes tied to the funding. He confused the necessity for metrics — comparable to emergency division wait occasions and maternal well being outcomes — to trace whether or not this funding improves look after rural communities.

    In Griffin’s view, a one-time money injection dangers being wasted with out clear funding methods. He believes investments ought to go towards infrastructure enhancements, workforce improvement and shared providers.

    50B clear CMS falling fund hospital risks rural short strategy
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