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DHS outlines plan to stabilize rural hospitals, says $10 million could federalize to $37.7 million
Summary
Secretary Arkoosh told appropriators an existing $10 million state allocation for rural hospital stabilization could be used to draw down federal funds and become $37.7 million; the administration also proposed a $20 million flexible patient‑safety fund for acute, place‑based hospital needs.
At the Appropriations Committee hearing, DHS Secretary Dr. Valerie Arkoosh described two separate budget items aimed at maintaining hospital capacity across Pennsylvania: a $10 million rural-hospital stabilization appropriation that can be federalized and a proposed $20 million “patient safety and services” contingency fund.
Why it matters: Rural hospitals face thin margins and staffing and access pressures. Arkoosh said the $10 million the General Assembly previously appropriated for the current fiscal year was structured so the Commonwealth could draw federal matching dollars; if the…
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