Millions earmarked to keep rural hospitals open, recruit health care providers in Shapiro’s $51.4B budget proposal

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BELLEFONTE — Rural health services would get an injection of taxpayer dollars to keep their doors open and recruit more professionals to work in remote communities under Pennsylvania Gov. Josh Shapiro’s proposed budget.

The $51.4 billion pitch unveiled to lawmakers earlier this month also includes a $25 million expansion of an agriculture grant program and increased spending on outdoor recreation that local officials say is key to boosting local revenue.

The Democrat’s proposal — which Republicans say uses inflated revenue projections — marks the beginning of months of hearings and budget negotiations. Pennsylvania lawmakers have until June 30 to send a finalized spending plan to the governor’s desk for approval.

Local elected leaders hope investments to address rural service gaps, promote economic development, and attract tourism through outdoor recreation make it into the final deal.

Here’s how some aspects of the governor’s budget plan could help rural communities.

Health

For years, health care administrators and experts have said a lack of workers and rising costs have exacerbated operating challenges, especially for hospitals in rural areas.

Residents in these communities are typically older and more reliant on Medicare and Medicaid, which reimburse for service at lower rates than private insurance companies. Because of the strain, many rural hospitals have scaled back services or shut down entirely.

Shapiro’s budget pitch earmarks $10 million in Medicaid spending for the state’s rural hospitals to help meet their needs.

The governor also proposed a $15 million increase to the state’s Primary Health Care Practitioner Program. Of those dollars, $5 million would expand existing efforts to fill staffing gaps in rural areas.

The boost would also use $10 million to expand an existing loan repayment program, which is currently available to physicians, dentists, nurses, psychologists, and other health care workers in underserved areas. Shapiro wants to broaden eligibility to include everywhere in Pennsylvania, hoping to address behavioral health staff gaps.

In a statement, leadership for the national nonprofit Rural Health Redesign Center told Spotlight PA the proposed investments could help ensure access to care in remote communities and brainstorm new ways to alleviate costs.

Agriculture

The state Department of Agriculture used $10 million in last year’s budget to create a grant program for innovative projects to shore up farm operations and reduce waste.

This year, Shapiro wants $25 million for the effort.

In its first round, the program supported equipment upgrades, facility improvements, and new technology for 88 awardees. The department received 159 applications for grant funds.

Rice Fruit Company in Adams County received $130,000 in these grant dollars to help pay for a robotic bin-tipper system used to pack apples for sale.

Valerie Ramsburg, who manages marketing for the operation, said the upgrade will increase capacity, improve quality, reduce labor costs, and reduce wastewater.

The governor’s proposal to devote more money to the grant program was welcome news, she told Spotlight PA.

“With the rising costs of farming and providing food for people, the support of our leaders is paramount,” Ramsburg said. “When farmers are able to make the most of new technologies, the efficiencies and benefits are passed on to consumers and Pennsylvania communities and help to maintain the rural atmosphere much of the Keystone State enjoys.”

Outdoor recreation

The governor’s proposed budget gives a 13.2% boost to the Department of Conservation and Natural Resources, which manages more than 2 million acres of parks and forests.

In total, Shapiro slated $664 million for the agency.

Under the spending plan, $5 million would go to infrastructure, trail improvements, and connectors in state-owned parks and forests. The proposal also includes funding increases for park and forest operations and pest management.

Shapiro has proposed expanding Lehigh Gorge State Park in Luzerne and Carbon Counties by 300 acres to reopen a trail that’s been closed since 2019 due to safety. The idea would require the state Game Commission, which manages the tract, to transfer the land to DCNR. The department would then reopen the trail after completing improvements.

Some of the proposed funds would help establish Laurel Caverns — dubbed Pennsylvania’s largest cave — as the first subterranean state park through a donation from the current owner. If approved, it would become the commonwealth’s 125th state park.

Fayette County Commissioner Vince Vicites told Spotlight PA the designation would give Laurel Caverns “more notoriety” and strengthen tourism in the Laurel Highlands, a region of southwestern Pennsylvania.

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