As state budget negotiations continue, the Shapiro administration is making the case for more funding to support rural hospitals. Representatives from the state's Department of Health, Department of Human Services and Penn Highlands Healthcare spoke Tuesday at Penn Highlands Tyrone.
“Rural hospitals have been facing substantial cost increases for labor, drugs, supplies, coupled with inadequate reimbursement rates and ongoing staffing shortages," said Trina Abla, the Penn Highlands Healthcare chief medical officer.
Abla said the Penn Highlands system, along with every rural hospital, is struggling financially.
Last year, Penn Highlands Elk in St. Marys closed its labor and delivery services. UPMC Cole in Coudersport closed its labor and delivery department this week.
In Gov. Josh Shapiro’s 2025-26 budget proposal, he’s asking for $10 million to expand a student loan repayment program for health care providers in rural communities. For the overall budget, he’s asking for a 9% increase from last year, totaling $51.5 billion dollars.
State Republicans have criticized the governor’s budget proposal, saying a large increase could eliminate the state’s emergency savings and create the need for tax increases on Pennsylvania families.
Val Arkoosh, the state’s Department of Human Services secretary, said increasing funding to rural hospitals is “common sense.”
“Rural hospitals are the lifeblood of rural communities, and so it is a wise investment to invest in health care in your communities," Arkoosh said.
Debra Bogen, the secretary for the state’s Department of Health, said she is hopeful for an agreement to send more funding to struggling rural hospitals.
“This is a unifying issue, right? Rural hospitals are part of the economic growth of a community," Bogen said.
A final agreement on the state budget is due by June 30, but state lawmakers have missed the deadline for the past three years.
