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.
Laporte, PA – Today, Department of Human Services (DHS) Secretary Dr. Val Arkoosh and Department of Health (DOH) Secretary Dr. Debra Bogen visited Sullivan County to celebrate the opening of the Sullivan County Laurel Health Centers and to discuss critical health care workforce investments included in Governor Josh Shapiro’s proposed 2025–26 budget. The budget prioritizes rural health across the Commonwealth, and community-based health care providers like the Laurel Health Centers play an essential role in expanding access to care, particularly in rural and underserved areas.
“When Laporte was on the brink of losing its health care center, the community rallied, and with the help of local and state government, was able to keep primary care services and expand their offerings to include dental and behavioral health services. The new Sullivan County Laurel Health Centers is an incredible story of what can happen when rural community members at every level work together to preserve access to health care,” said Secretary Arkoosh. “Having access to health care close to home is something that every Pennsylvanian deserves. That is why Governor Shapiro’s proposed budget makes strategic investments in hospitals and in the health care workforce, which will improve the health of all Pennsylvanians by expanding access to care for people in every community across the Commonwealth.”
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 all types of hospitals. 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 specifically for 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 is 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 farther 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.”
The Laurel Health Centers offer award-winning family medicine, behavioral health services, and specialty care for the whole family throughout Tioga, Bradford, and Sullivan counties in northcentral PA, including sites in Blossburg, Elkland, Laporte, Lawrenceville, Mansfield, Towanda, Troy, Wellsboro, and Westfield, PA. The health system includes nine community health centers, six dental clinics, Laurel Behavioral Health outpatient services, mobile dental outreach, school-based mental healthcare, specialty services, and the Laurel Health & Wellness Center.
Laurel Health is committed to caring for all patients, regardless of their ability to pay or insurance status. The health system offers a sliding fee scale to income-eligible patients as well as providing free help with health insurance enrollment and financial aid applications to ensure everyone can access the care they need. Laurel Health’s services include primary care, pediatrics, dental services, women’s health, preventive wellness care, internal medicine, chiropractic care, sports medicine, walk-in care, mental health counseling, nutrition therapy, diabetes education, care coordination, chronic disease management, insurance enrollment assistance, and more.
“In 1973, we opened our first health center, and today, we celebrate our ninth. Today, we recognize the hard work, passion, and commitment of community health centers. We are forever grateful to the talented staff, board members, foundations, and community supporters who make it possible for us to provide quality, comprehensive healthcare services to thousands of patients across our rural region every year,” said James A. Nobles, Laurel Health CEO. “Laurel Health has continued to flourish by placing patients first, employing excellent staff, remaining focused on each community’s unique needs, and guiding our mission, vision, and values with an open and committed heart.”
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;
$5 million to create the Nurse Shortage Assistance Program, a first-time state-level investment that will fund organizations that partner with hospitals and nursing schools to cover student loan costs for nursing students who commit to a three-year work placement at Pennsylvania hospitals after graduation. This initiative will build a pipeline of trained nursing professionals, boosting retention, limiting turnover, and helping maintain a skilled health care workforce that delivers high-quality care across the Commonwealth.
Calling for universal postpartum depression screening and intervention efforts to ensure timely and equitable access to maternal and mental health care for mothers; and
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.
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.
