Rural Health Funding Isn’t a Handout — It’s a Lifeline
Earlier this month, South Dakota Association of Healthcare Organizations (SDAHO) President and CEO Tim Rave was featured in the Dakota Scout Viewpoints section, offering a counterpoint to a recent guest column by Sally C. Pipes criticizing the Rural Health Transformation Fund.
“Recent commentary has unfairly characterized the new $50 billion Rural Health Transformation Fund as a ‘slush fund’ for large hospital systems,” Rave shared. “That view misrepresents both the intent and the reality of rural health care — particularly in states like South Dakota, where access to care remains both fragile and essential.”
Rave emphasized that this one-time, five-year national investment is not about rewarding institutions but about preserving access to care in communities where hospitals serve as lifelines. Rural hospitals face persistent challenges, including low patient volumes, high operating costs, and inadequate reimbursement rates. These facilities often serve as major employers while providing 24/7 emergency care that communities depend on.
The fund gives states flexibility to address local healthcare needs — from modernizing facilities and expanding telehealth to sustaining emergency departments where closure could cost lives. Rave also noted that while telehealth and mobile care are valuable, they can’t replace hospitals when serious emergencies occur.
“When rural hospitals close, the impacts are devastating — slower emergency response times, job losses, and growing health disparities,” said Rave. “This fund is an investment in equity and in people. Rural South Dakotans deserve access to care close to home.”
Read both Dakota Scout Viewpoints: thedakotascout.com/viewpoints
