Madras among 17 rural Oregon counties to receive maternity care funding

SALEM, Ore. (KTVZ) — The Centers for Medicare & Medicaid Services approved Oregon's proposed state directed payment plan, unlocking up to $37.5 million for 21 rural hospitals to strengthen and stabilize maternity care services in some of the state's most remote communities.

The approved federal funds will match state funding secured by Gov. Tina Kotek, leading to the total investment. For rural hospitals, many of which anticipate reductions in Medicaid funding due to H.R. 1, the payments are intended to support staffing, essential medical equipment, job retention and creation, and improvements to maternity care.

The coordinated effort is led by Gov. Kotek, the Oregon Health Authority and the Hospital Association of Oregon. The directed payment is part of a one-time $25 million investment authorized by the Legislature in House Bill 5025 (2025).

Gov. Kotek emphasized her commitment to rural communities.

“I fought for these funds in my budget to stabilize services in Oregon because rural communities deserve reliable, high quality maternity care close to home,” Kotek said. “The Trump Administration's cuts to Medicaid will make rural maternity care harder to sustain and I applaud the work by the agency to maximize state dollars to support Oregon providers. I appreciate this partnership from hospital leaders who participated in conversations with my office to devise how these funds will be spent and our continued partnership as we work together to improve access to care where it's needed most.”

Roughly half of all births in Oregon are covered by the Oregon Health Plan (OHP). Medicaid funding changes have already begun to impact rural health care providers in Oregon and across the country.

Oregon Health Authority Director Dr. Sejal Hathi highlighted the urgency of supporting rural hospitals.

“CMS's approval enables us to support rural hospitals at a moment when maternity services are under tremendous pressure,” Hathi said. “OHA worked hard to secure this funding because rural families and communities cannot wait as health care costs rise and labor and delivery units close. These funds will help reinforce essential care for expecting OHP members while also strengthening services for entire communities. As we implement this directed payment, OHA remains committed to bolstering the full continuum of maternity care and closing longstanding gaps—so that families can access the safe, high-quality care they need throughout pregnancy and beyond.”

The payments are intended to stabilize maternity services by supporting staffing, equipment upgrades and expanded patient services. State officials say the investment is expected to improve access to prenatal and postpartum care, reduce preventable complications and promote more equitable maternal health outcomes for OHP members in rural Oregon.

Becky Hultberg, president and CEO of the Hospital Association of Oregon, said the funding will help hospitals facing financial and workforce challenges.

“Oregon's rural hospitals face mounting financial and workforce challenges in sustaining the maternity services families rely on,” Hultberg said. “CMS's approval was a critical step in releasing funds to rural hospitals, providing much-needed support to help protect access to maternity care in rural Oregon. This investment highlights what can be achieved when state leaders, hospitals and our partners work together to protect care in communities.”

Hospitals that currently provide maternity services will automatically receive payments. The funds may be used to hire or retain maternity care staff, purchase or upgrade clinical equipment, and expand outreach, navigation or perinatal support for OHP members.

The 21 hospitals receiving funding are: Adventist Health Columbia Gorge Medical Center, Adventist Health Tillamook Medical Center, Blue Mountain Hospital, Columbia Memorial Hospital, Good Shepherd Medical Center, Grande Ronde Hospital, Harney District Hospital, Lake District Hospital, Legacy Silverton Medical Center, PeaceHealth Peace Harbor Medical Center, Providence Hood River Memorial Hospital, Providence Newberg Medical Center, Saint Alphonsus Medical Center–Ontario, St. Anthony Hospital, St. Charles Medical Center–Madras, Samaritan Lebanon Community Hospital, Samaritan North Lincoln Hospital, Samaritan Pacific Communities Hospital, Santiam Memorial Hospital, Wallowa Memorial Hospital and Willamette Valley Medical Center.

In counties such as Malheur County, where more than half of residents are enrolled in OHP, officials say investments in staffing and equipment will benefit the broader community in addition to OHP members.

Beyond the directed payment, OHA is continuing efforts to strengthen maternity care by expanding access to doulas and lactation counselors, supporting community-based perinatal care providers and investing in maternal and child health through the Rural Health Transformation Program.

OHA also increased 2026 maternity care reimbursement rates for larger hospitals paid through coordinated care organizations. The agency is now working with coordinated care organizations and rural hospitals to finalize a payment schedule.