Oregon Capital Chronicle

Oregon Allocates $37.5M to Rural Hospital Maternity Services After Federal Medicaid Cuts

Oregon will distribute up to $37.5 million to approximately 24 rural hospitals across 17 counties to strengthen maternity care services, combining a one-time $25 million state investment with at least $12.5 million in federal matching funds. The funding responds to recent federal Medicaid cuts that have destabilized rural maternity services. The initiative targets hospitals providing obstetric care in underserved areas where access to maternal health services has been declining. For Medicaid managed care organizations operating in Oregon, this investment may affect network adequacy requirements and maternity care capacity in their rural service areas.