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Governor Kotek announces $25 million to shore up rural maternity care in Oregon
Summary
Governor Kotek announced a $25 million state investment to support maternity services at 21 rural hospitals across 17 counties, citing recent closures, staffing shortages and Medicaid funding pressures that threaten access to local prenatal and delivery care.
Governor Kotek announced a $25,000,000 state investment intended to support maternity services at 21 rural hospitals across 17 counties, saying the funds will help hospitals hire and retain staff, purchase necessary equipment and support people covered by the Oregon Health Plan during pregnancy and childbirth.
Kotek cited recent closures and staffing shortages in rural hospitals as the immediate problem, saying hospitals have been forced to stop maternity care because of rising costs and limited staff. "When you're expecting a baby, the last thing you should have to worry about is whether the care you need is too far away," she said.
As examples, Kotek referenced two 2023 incidents: Legacy Mount Hood's announcement that it would close its family birth center and the administration's intervention to reopen those services 90 days later, and Saint Alphonsus in Baker City's notice that it planned to close the only maternity unit in the county. Kotek said she worked with local leaders to "push for more time, more answers, and a plan for families in Eastern Oregon."
She also attributed part of the pressure on rural hospitals to federal changes in Medicaid funding, saying "the Trump administration's cuts to Medicaid make it even harder for rural hospitals that depend on stable funding." Kotek framed that fiscal pressure alongside state statistics: she said more than 30% of Oregonians rely on the Oregon Health Plan and stated (verbatim) that "about 0.5 of all births in Oregon are covered by Medicaid." The transcript phrased the births statistic as "0.5," which is interpreted here as "about half"; the governor did not provide a citation in this statement.
Kotek described the announced $25 million as state funds to be used to support staff recruitment and retention, buy medical equipment, and provide services for Oregon Health Plan enrollees during pregnancy and childbirth. She did not specify in this message whether the allocation requires additional legislative approval or how the funds will be distributed to individual hospitals.
"This is about making sure families can get their health care closer to home," Kotek said, adding, "I'm gonna keep fighting to protect access to health care for every Oregon family."
