The Colorado Rural Health Center (CRHC) is raising critical concerns about proposed federal budget cuts that could significantly undermine rural healthcare sustainability across Colorado. The Trump administration's draft budget for fiscal year 2026 targets elimination of key bipartisan rural health support programs, threatening the operational foundations of rural medical facilities. Proposed budget cuts would dismantle three essential programs: the State Office of Rural Health, the Medicare Rural Hospital Flexibility program (FLEX), and the Small Rural Hospital Improvement Program (SHIP). These programs provide crucial technical assistance and support to rural healthcare providers.
Currently, 21 rural Colorado hospitals are operating with negative profit margins, making them particularly vulnerable to funding reductions. Rural health providers already face significant challenges, including higher percentages of Medicare and Medicaid patients, chronic disease prevalence, lower incomes, workforce shortages, and aging populations. CRHC CEO Michelle Mills emphasized the broader economic implications, stating that every dollar invested in rural healthcare supports community vitality. The National Rural Health Association reports that hospitals nationwide support over 16 million jobs, with each hospital dollar generating $2.30 in additional economic activity.
DeeAnn Sierra, RN, from Rio Grande Hospital, highlighted the potential devastating consequences, noting that losing State Offices of Rural Health would severely impact rural healthcare providers' ability to serve their communities effectively. Last year, CRHC provided over 14,000 technical assistance touchpoints to rural hospitals and clinics across Colorado's 47 rural and frontier counties. The organization serves 42 rural hospitals and more than 100 rural clinics, making its advocacy critical to maintaining healthcare access in remote regions.
The proposed budget cuts could force rural healthcare facility closures, potentially leaving entire communities without accessible medical services. Mills urged full funding of SORH, Flex, and SHIP grants to ensure rural healthcare facilities can continue serving their communities sustainably. The implications extend beyond healthcare delivery to economic stability, as rural hospitals often serve as major employers and economic anchors in their communities. The potential elimination of these programs represents a significant threat to the healthcare infrastructure that supports approximately 700,000 Coloradans living in rural areas.
