Families in rural Oregon will soon see stronger, more reliable maternity care thanks to new federal funding approved by the Centers for Medicare & Medicaid Services (CMS). Governor Tina Kotek has secured state funding that will help keep maternity care services strong and stable in some of the state’s most remote areas. With funds matched by the federal government now in place, Oregon will invest up to $37.5 million in 21 rural hospitals across 17 counties.
Why this funding matters
Many rural hospitals have been under financial pressure, especially with recent federal changes to Medicaid funding. These challenges have made it harder for some hospitals to keep labor and delivery units open. This new funding will help hospitals maintain quality maternity care, hire and keep skilled staff and upgrade important medical equipment.
It will also support good paying jobs and help improve care for Oregon Health Plan (OHP) members, who make up nearly half of all births in the state.
A collaborative effort
OHA Director Dr. Hathi says this investment is about making sure families can get safe, high-quality care they need throughout pregnancy and beyond. State leaders, Oregon Health Authority (OHA) and hospital partners worked closely together to design a plan that supports the communities that need it most.
Hospitals don’t need to apply for the funding—payments will be sent automatically to rural hospitals that already provide maternity services. OHA is working with coordinated care organizations (CCOs) to finalize the payment schedule.
Hospitals can use the funds to:
- Hire or retain maternity care staff.
- Upgrade or purchase clinical equipment.
- Expand outreach, navigation, or perinatal support for OHP members.
These investments are part of a bigger statewide effort to strengthen maternity care from pregnancy through postpartum. OHA is also expanding access to doulas and lactation counselors, supporting culturally specific perinatal programs and helping rural hospitals through the Rural Health Transformation Program.
Benefits for the whole community
In places like Malheur County, where more than half of residents are enrolled in OHP, these improvements will benefit the entire community, not just OHP members. New equipment, more staff, and better support services will help all families seeking maternity care.
The goal is clear: make sure every Oregon family, no matter where they live, can get critical services close to home.
To view the list of hospitals that will receive payments, see OHA’s May 28, 2026 press release.