Rural Providers to Use USDA Grants to Boost Telehealth Capabilities
USDA is providing $43 million in new funds to rural healthcare providers, many of whom have earmarked the funds to implement and support telehealth services.
The U.S. Department of Agriculture is awarding $43 million to support rural healthcare providers amid the ongoing COVID-19 pandemic, and many plan to use the funds to expand telehealth capabilities.
The Emergency Rural Health Care Grants were made available through the American Rescue Plan Act. In total, $475 million in grants have been earmarked to support rural hospitals and providers. In this round of funding, $43 million will be provided to 93 rural healthcare organizations and community groups across 22 states.
"USDA used an all-hands-on-deck approach to create the Emergency Rural Health Care Grants program to address a variety of immediate healthcare needs and services in rural communities," said USDA Secretary Tom Vilsack in the press release.
Several grant awardees plan to use the funds to implement and enhance telehealth services. For example, Neosho Memorial Regional Medical Center in Chanute, Kansas, which is receiving $434,300, plans to use some of the funds to purchase and install telehealth infrastructure and upgrade information systems.
Another provider organization, Appleton Area Health in Minnesota, is planning to use part of its $174,300 grant to upgrade its telemedicine capabilities and replace hospital equipment. It also plans to install 28 flat-panel television monitors with cameras in clinic exam rooms and patient rooms.
McAlester Regional Healthcare Authority in Oklahoma, which is slated to receive $71,300, will use part of the money to implement a telehealth program at McAlester Regional Hospital. The organization plans to purchase 127 computers and hire a trainer/coordinator.
In addition to telehealth, rural providers will use the funds to increase staffing to administer COVID-19 vaccines and testing, establish nutrition assistance programs, and build or renovate facilities.
The next round of Emergency Rural Health Care Grants funding will be announced later this year.
Research shows that people living in rural areas were less likely to use telehealth during the COVID-19 pandemic, with some reporting lower telehealth availability than those who lived in urban areas.
One likely reason for this is the lack of access to broadband in many parts of the US. One estimate shows that at least 42 million Americans lacked access to terrestrial broadband internet in 2021.
Another probable reason for the lack of telehealth availability is that rural healthcare providers are in a precarious position, operationally and financially. Since the COVID-19 pandemic hit, 21 hospitals have closed in the US, and 40 percent of rural hospital operating margins are in the red, according to The Chartis Center for Rural Health.
A viewpoint article published in JAMA Health Forum last year pointed out some hurdles to telehealth adoption among rural providers. The authors cited lack of adequate cash flow, low patient volumes, and the telehealth reimbursement structure among the barriers.