Welcoming a new baby should come with peace of mind, not worrying about how far you’ll have to travel to get care. That’s why Governor Tina Kotek is working with Oregon Health Authority (OHA) and the Hospital Association of Oregon to protect and strengthen labor and delivery services across the state.
At its heart, this partnership is about one simple idea: Oregon families deserve safe, local maternity care, no matter where they live.
Giving support where it is needed most
Governor Kotek has set aside $25 million to help hospitals that provide maternity care stay open and stable.
- $15 million will go to small, rural hospitals with fewer than 50 beds that offer maternity care. OHA is working to bring in federal matching funds to stretch these dollars even further.
- $10 million, also eligible for federal match, will help larger hospitals by increasing payments for maternity care starting in 2026.
Hospital leaders say this funding is an important first step, especially for rural communities where hospitals are struggling with staffing shortages and rising costs.
Why this work matters
When families can get maternity care close to home, babies have a healthier start and families feel more supported. But many hospitals, especially in rural areas, are having a hard time keeping labor and delivery units open. Some have had to close, forcing families to travel long distances to give birth.
This investment is meant to help prevent that. It focuses on hospitals that need it most and brings together state agencies, hospitals, and insurers to work together to make the best use of funds.
As OHA Director Dr. Sejal Hathi shared, maternity care is a cornerstone of healthy communities. These steps help make sure families can continue to count on local hospitals when it matters most.
By working together, Oregon is taking real steps to support families, strengthen hospitals, and keep maternity care close to home now and into the future.