Southern Oregon Schools Included in Rural Healthcare Funding Initiative
State program could expand school nursing, support rural hospitals, and open new funding opportunities for regional healthcare providers
MEDFORD, Ore. — Southern Oregon communities are expected to benefit from new federal funding aimed at improving healthcare access in rural areas, including a school nursing initiative that will involve regional educational service districts.
The Oregon Health Authority announced Friday that a dozen projects statewide are expected to receive funding through Oregon’s new Rural Health Transformation Program. One of those efforts includes a school nursing access pilot serving Southern Oregon, designed to improve student health support in rural schools where access to care can be limited.
Officials say expanding school-based healthcare services can help identify health concerns earlier, reduce absenteeism, and connect families to local medical resources — particularly important in rural communities where travel distances and provider shortages often create barriers to care.
The initial projects are expected to receive up to $6.5 million this year through what the state calls “Immediate Impact Awards.” The funding supports initiatives focused on workforce training, chronic disease management, mental health and substance use prevention, maternal health services, and emergency response training.
Beyond the school-based pilot, Southern Oregon healthcare providers may also benefit from additional funding opportunities announced by the state. Plans include direct support for rural hospitals, rural health clinics, and county public health departments.
Statewide, the program includes:
Funding for Oregon’s 35 rural hospitals
Grants for approximately 100 certified rural health clinics
Support for local public health authorities, including county health departments
These investments are intended to help rural communities address ongoing challenges such as limited provider availability, longer travel times for care, and higher rates of chronic health conditions.
The Oregon Health Authority also announced a second funding opportunity known as Catalyst Awards, with proposals due May 26. This competitive pool could distribute about $80 million per year for up to two years to projects focused on maternal and child health, behavioral health, aging in place, and chronic disease.
Healthcare organizations in Southern Oregon may apply for these funds to launch new programs or expand services. Projects selected for funding must be ready to begin within two months.
The Rural Health Transformation Program was created through federal legislation in 2025 and is expected to provide Oregon with $197.3 million in 2026, with the potential for up to $1 billion over five years.
Officials say the goal is to expand access to care, strengthen the healthcare workforce, and improve long-term health outcomes in rural and frontier communities — including across Southern Oregon.
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