Petersburg Medical Center seeks transformation funding, pursues shared services with other rural hospitals
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Summary
Executives described outreach to state legislators and multiple grant tracks — including an HRSA networking grant and a March 11 LOI deadline for rural health transformation funds — and said they will seek shared credentialing and group‑purchase arrangements with three Alaska critical‑access hospitals.
The board heard an update on grant and legislative work aimed at bolstering services and the new facility plan.
Phil, serving in an executive capacity, reported that staff spent a week in Juneau meeting legislators and representatives to discuss capital needs for the replacement facility and to advocate for rural health transformation funds. Phil said he distributed a one‑page schematic and highlighted two projects they proposed: a direct‑primary‑care/payer model and investments in interoperability and technology to address the hospital’s current electronic health record limitations. "We have to do something at the state level," Phil said, describing EHR integration as a technology‑heavy lift.
Katie, who is leading grant work for the HRSA networking project, described a separate HRSA networking grant that seeks to identify shared services across three Alaskan critical‑access hospitals (South Peninsula, Homer, Cordova and Petersburg). The grant targets functions such as credentialing, peer review, residency rotation opportunities, and group purchasing to lower supply costs. Katie said the HRSA portal for a related rural health transformation LOI closes March 11 and staff are preparing quick applications; another speaker placed the total related funds that must be obligated by the state at about $273,000,000 and noted a relatively short spend‑down window for subgrantees.
Phil and Katie emphasized that RHTP/RSTP funding streams are time sensitive, may carry CMS/CMS‑related conditions, and are not automatic for construction of a replacement facility; Phil said the hospital is engaging the delegation and the Alaska Hospital and Healthcare Association to align on priorities.
The board also discussed the hospital’s HRSA networking work on shared billing, credentialing and group purchasing; Phil said the initiative will start with smaller, provable concepts and expand if initial projects succeed. No formal board action was taken on grants at this meeting.
The board was asked to remain aware of short grant deadlines and to expect more concrete dollar figures and program details at the next meeting.

