Transforming Wisconsin: Impact of Federal Grants on Rural Healthcare

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TL/DR –

The Biden Administration has announced an $11 million investment to expand medical residencies in rural communities, with fifteen medical systems across the US set to benefit. In Wisconsin, $750k of the investment will go to UW-Health’s OB-GYN program, while the US Department of Health and Human Services (HHS) Secretary Xavier Becerra has stated future opportunities for funding exist. Additionally, HHS has been implementing initiatives to improve health services and access in rural communities, including the Health Resources and Services Administration providing approximately $173 million in grants during fiscal year 2023 for rural health projects and programs.


Biden Administration Invests in Rural Medical Residency Expansion

The Biden Administration has declared an $11 million fund to support the expansion of medical residencies in rural communities. The U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra and White House Domestic Policy Council Director Neera Tanden made the announcement in Northcentral Wisconsin.

Addressing Rural Healthcare Needs

Aspirus Riverview Hospital’s Health Care Simulation Center, part of Mid-State Technical College, hosted the announcement. The center provides practice opportunities for future nurses and paramedics using simulated patients. The HHS Secretary and Director toured the facility, where they witnessed students’ practical demonstrations. They announced the investment in rural healthcare and its workforce during their visit.

Federal Investment Distribution

Around 15 different medical systems across the country will share the $11 million federal investment. For instance, UW-Health’s OB-GYN program in Wisconsin will receive $750,000. Secretary Becerra assured that more funding opportunities will become available for other rural communities in the future.

Advocacy for Medicaid Expansion

Becerra urged Wisconsin to consider expanding Medicaid, a step yet to be taken by ten states. This expansion could unlock additional federal funding. However, Wisconsin Manufacturers and Commerce oppose this proposal.

Addressing Medical Workforce Shortage

Northcentral Wisconsin’s endeavors to build a rural healthcare workforce are gaining attention. Aspirus, Marshfield Clinic, and the Wisconsin Hospital Association argue for higher reimbursement for Medicare, given the large proportion of patients served who are insured through Medicare. While Medicaid expansion might help, making Medicare adjustments is viewed as a more substantial issue.

HHS Efforts to Improve Rural Healthcare

The HHS has initiated several projects to enhance health services for rural Americans. These include expanding quality healthcare access via the Affordable Care Act Marketplaces and reducing prescription drugs cost through the Inflation Reduction Act. In the Fiscal Year 2023, the HHS provided approximately $173 million in grants via the Health Resources and Services Administration’s (HRSA) Federal Office of Rural Health Policy (FORHP).

FORHP Grant Awards

  • HRSA awarded $90 million to boost rural behavioral health care services, including substance use disorder prevention and recovery through the Rural Communities Opioid Response Program.
  • FORHP devoted nearly $65 million to expand the rural workforce in vital areas.
  • FORHP granted over $9 million to develop new rural residency programs, helping to place more medical school graduates in rural areas.
  • An award of $100 million was made to meet the growing demand for registered nurses, nurse practitioners, certified nurse midwives, and nurse faculty.
  • FORHP invested nearly $9 million to enhance prenatal, delivery, and post-pregnancy support services in rural networks, benefiting almost 5,000 rural mothers.


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