Senate hearing considers redefining "rural" to preserve provider incentives for growing communities

Senate Bill 376, introduced to the Senate Committee on Health Care on Feb. 6, 2025, would change how Oregon defines "rural" for the purpose of healthcare provider incentives, using a percentage of the statewide population rather than a static population threshold.

Sponsor Suzanne Weber, a state senator who represents rural northwest Oregon, told the committee SB 376 would redefine rural to "constitute communities with 1.25% of the statewide population" so communities that have grown but retain rural characteristics remain eligible for loan repayment, tax credits and workforce supports.

"This will ensure that the communities who have begun to rely on this important program can can can continue to do so," Senator Suzanne Weber said.

Why it matters: Oregon's healthcare provider incentive program—formed under earlier legislation—offers loan repayment, loan forgiveness, insurance subsidies and workforce development to recruit and retain providers in rural and underserved areas. Proponents said a floating threshold would prevent communities that grow…