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Nebraska receives $218.5 million federal investment to strengthen rural hospitals

Nebraska receives $218.5 million federal investment to strengthen rural hospitals
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Some rural hospitals across Nebraska are fighting to keep their doors open, but a massive federal investment could help strengthen the state's rural healthcare system. Though the state has just two years to prove the money is working or risk losing the rest.

The Centers for Medicare and Medicaid Services is awarding Nebraska $218.5 million over the next five years to address critical gaps in rural healthcare infrastructure.

"If you don't have at least a close to sustainable funding stream to reimburse doctors and hospitals to keep them open, they just won't be there," said Jeremy Nordquist, President of the Nebraska Hospital Association.

While the state has the final say on where the money goes, the Nebraska Hospital Association will provide input on spending priorities.

"This funding we hope can be used to maybe create more rural residencies to train more rural physicians in rural communities so they stay in rural communities. That's going to be a key part of addressing that," Nordquist said.

Nordquist says the state will also use the funding to tackle workforce shortages, technology upgrades, and emergency medical services across the state's rural healthcare system.

"Now we have an opportunity to take it and transform it so it can be sustainable for a longer period of time," Nordquist said.

Nebraska has more than 90 rural hospitals — one of the highest concentrations per capita in the country. But the state faces a projected shortage of 5,000 nurses, and Nordquist admits some facilities are barely hanging on.

"We do not want to see rural hospitals close and lose that rural healthcare infrastructure that we've built and sustained in Nebraska for more than 100 years," Nordquist said.

Nebraska will receive the funding through 2030. The state has two years to prove to federal officials the money is making a difference, or Nebraska risks losing the remaining $131 million.

Hospitals won't automatically receive the money. Nordquist says they'll have to apply through a competitive state process to prove they can use it effectively.

"This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy."

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