Six rural hospitals in Massachusetts are eligible to receive up to $2.5 million each in federal funding aimed at capital improvements and health care enhancements, as state officials begin distributing $162 million allocated under a new federal program. The Executive Office of Health and Human Services (EOHHS) issued a request for applications last week, with submissions due by October 26.
The funding is part of the Rural Health Transformation Program, established through the federal “One Big Beautiful Bill Act,” a five-year $50 billion initiative to support rural health care nationwide. Massachusetts is set to receive up to $800 million over the course of the program. The initial funding period will run from October 30, 2024, through September 30, 2027.
In addition to rural hospitals, the funding opportunity extends to rural health clinics, community-based organizations, social services groups, federally qualified health centers, nursing facilities, and rural municipalities. Eligible applicants may seek resources for a variety of purposes, including population health improvement, innovation in rural care delivery, workforce development, technology upgrades, facility modernization, and reuse of underutilized spaces.
The six rural hospitals eligible for capital grants are Athol Hospital, Martha’s Vineyard Hospital, Fairview Hospital in Great Barrington, North Adams Regional Hospital, Nantucket Cottage Hospital, and Baystate Wing Hospital in Palmer. Each hospital can request up to $2.5 million, with awards determined based on the scope, readiness, and approval of proposed projects. Potential uses include enhancing diagnostic and specialty care capabilities, expanding preventive and chronic disease services, integrating new technologies, and addressing aging physical infrastructure such as heating, ventilation, and air conditioning systems.
According to a recent report by the Center for Health Information and Analysis, operating margins among these hospitals vary. Nantucket Cottage Hospital reported a negative operating margin of 4.8 percent in fiscal year 2025, while Fairview Hospital reported a positive margin of 10.1 percent.
State officials have emphasized the significant health care disparities rural communities in Massachusetts face, citing challenges including limited health care providers, deteriorating infrastructure, and a systemic decline in local health services. Eliza Lake, director of health policy and strategic initiatives at EOHHS, noted that the program’s procurement process must prioritize “shovel-ready” projects to meet federal deadlines requiring all funds to be obligated by the end of October and fully expended by next September.
The initiative aims to strengthen rural health care capacity and address long-standing inequities affecting access and outcomes in these communities across the state.