Governor Shapiro’s proposed 2025-26 budget includes $10 million in state funds that, combined with federal funding, will invest $35.1 million in rural hospitals to ensure that Pennsylvanians in rural communities can continue to access health care services where they live.
The Governor’s budget also proposes $10 million in state funds to support hospitals across Pennsylvania. This investment will allow the Commonwealth to leverage federal funding and invest $35.1 million in hospitals to assist the Commonwealth in responding to urgent patient needs and staffing requirements.
Erie, PA – Today, Department of Human Services (DHS) Secretary Dr. Val Arkoosh visited Wayne Primary Care, a federally qualified health center (FQHC) operated by Primary Health Network, to discuss critical health care workforce investments included in Governor Shapiro’s proposed 2025–26 budget. The budget prioritizes rural health across the Commonwealth, and community-based health care providers like FQHCs play an essential role in expanding access to care, particularly in rural and underserved areas.
“Having access to health care in your community and close to home is something that every Pennsylvanian deserves. Unfortunately, for too many people, where they live dictates the health care they have access to, and many people need to travel long distances to get the care they need,” said Secretary Arkoosh. “Governor Shapiro’s budget aims to change that by making strategic investments in hospitals and in the health care workforce, which will improve the health of all Pennsylvanians by expanding access to care. I look forward to working with the Administration and the General Assembly to make sure Pennsylvanians get the health care they need no matter where they live.”
Investing in hospitals statewide is a priority for the Shapiro Administration. With a proposed state investment of $10 million, Pennsylvania can draw down federal matching funds to help offset increasing costs, for a total of $35.1 million to support this initiative. DHS will use these funds to assist the Commonwealth in responding to urgent consumer health care needs and staffing requirements. The proposed budget also includes $10 million in state funds that, combined with federal funding, will invest $35.1 million in rural hospitals to ensure that Pennsylvanians in rural communities can continue to access health care services where they live. The budget includes a further $20 million in state funding to provide patient safety and support to hospitals in a new dedicated appropriation, to address barriers to care like affordability, transportation and reliable providers.
In addition, Pennsylvania in facing shortages of health care professionals, particularly in rural communities, where there is only one primary care physician for every 522 residents. Conversely, in urban areas, there is one primary care physician for every 222 residents. That means rural Pennsylvanians, who already must travel further distances to see their doctors, also have less access to health care. The 2025-26 proposed budget invests $5 million to expand the Primary Care Loan Repayment Program offering loan repayment for health care providers who serve in rural communities.
“Providing quality medical care for people close to their homes is essential. Currently, rural Pennsylvanians travel further for their care than those who live in urban parts of the state. The Shapiro Administration is taking a multi-pronged approach to address health care workforce challenges across the Commonwealth, including in rural communities,” said Secretary of Health Dr. Debra Bogen. “Governor Shapiro’s budget proposal offers recruitment and retention incentives that would support additional health care professionals, including behavioral health providers and health professionals to work in hospitals and communities.”
Wayne Primary Care is part of Primary Health Network, Pennsylvania’s largest community health center, which is dedicated to providing high-quality, patient-centered care across a broad range of services, including primary care, behavioral health, dental, pediatrics, podiatry, chiropractic, and more. With a team of compassionate providers and staff, Primary Health Network offers comprehensive care focused on promoting overall health and empowering patients to lead healthier lives.
Last year, Primary Health Network served over 75,000 patients across 16 counties in Pennsylvania and one county in Ohio. The network participates in most managed care plans, accepts a wide variety of insurances, and offers a sliding fee discount for eligible patients.
“We are honored to welcome Secretary Arkoosh to our Wayne Primary Care and deeply appreciate her commitment to understanding the critical role community health centers play in caring for our communities,” said Primary Health Network CEO George Garrow, MD. “Her visit underscores the importance of sustained support for Medicaid, which is essential to ensuring access to quality, affordable healthcare for the individuals and families we serve every day.”
In addition to the investments above, Governor Shapiro’s 2025-26 budget proposal takes action to build a more competitive health care workforce through the following investments:
$10 million to expand behavioral health loan repayment programs, ensuring providers are available statewide – including in rural communities – to meet the growing demand for mental health care and address a critical workforce shortage.
Enhancing postpartum depression screening and intervention efforts to ensure timely and equitable access to maternal and mental health care for mothers.
Encouraging legislation to grant full practice authority to nurse practitioners who have worked under a physician for three years, increasing access to care in underserved communities.
Watch Governor Shapiro’s full budget address to a joint session of the House and Senate here. See the Governor’s full remarks as prepared for delivery here.
Read more about Governor Shapiro’s 2025-26 budget proposal. Explore the Governor’s 2025-26 Budget in Brief here, or visit shapirobudget.pa.gov to learn more.
