New Policy Paper Highlights Rural Providers’ Sources and Challenges in Accessing Capital Funding

The National Rural Health Resource Center, in partnership with Stroudwater Capital Partners, has released a new policy paper that surveys the major capital funding programs available to rural health organizations and analyzes the persistent challenges that prevent providers from converting available funding into usable capital. 

The paper, “Accessing Funding for Capital Projects in Rural Healthcare,” is intended for use by rural providers, State Offices of Rural Health (SORHs), state Medicare Rural Hospital Flexibility Programs, funders and lenders supporting rural health projects and other rural health stakeholders. It provides information to improve how capital funding programs support rural health care — by removing challenges, increasing investment and exploring new solutions.

Based on a systematic review of available funding programs through September 2024 and key informant interviews with rural health care administrators, SORHs, financial experts and program leaders, the paper highlights:

• The main sources of capital that rural providers have access to through state, federal and private programs — state appropriations, federal loans and guarantees, foundation grants and others — and the increasing need for rural providers to tap into multiple funding sources to support a single project
• The challenges faced by rural providers as they seek to access capital, including the limited funding available for rural health projects and the limited capacity for rural health professionals to navigate financing processes
• The critical roles that pre-development support, technical assistance and lender experience play in helping rural providers secure and manage complex capital projects

The paper concludes that the pathway to securing and aligning sources of financing for rural health projects remains highly complex, but notes that coordination, collaboration and targeted action can strengthen rural providers’ ability to access and leverage capital to meet community health needs.

If you have any questions or comments about the policy paper, please contact Sally Buck, sbuck@ruralcenter.org.

The Health Resources and Services Administration (HRSA), Department of Health and Human Services (HHS) provided financial support for this Information Services to Rural Hospital Flexibility Project. The contents are those of the author. They may not reflect the policies of HRSA, HHS, or the U.S. Government.