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Texas Rural Hospital Financial Stabilization Grant

This funding record is inactive. Please see the program website or contact the program sponsor to determine if this program is currently accepting applications or will open again in the future.

Sponsor
Texas Health and Human Services
Deadlines
Jul 8, 2024
Contact

Laurie Anderson
512.424.6784
laurie.anderson@hhs.texas.gov

Purpose

Texas Health and Human Services Commission is offering grants for operational costs for rural hospitals in Texas to support the hospitals as they transition to improved long-term financial solvency and sustainability.

Awardees will be required to submit:

  • A 2-year Financial Solvency Plan
  • Monthly progress reports
  • Documents that support eligible expenses

Frequently asked questions

Eligibility

Eligibility requirements:

  • Classified as a rural hospital
  • The sole Licensed General or Special Hospital provider in the county
  • Licensed by the Health and Human Services Commission for 25 or fewer beds
  • Able to provide management reports, including cash flow reports, profit and loss accounts, and balance sheets, to demonstrate the full financial position of its business
  • Able to demonstrate financial need

To be funded for Tier 1 (Basic Need), the applicant must meet at least 3 of the following financial conditions:

  1. Operating margin is less than 5%
  2. Applicant has less than 60 days cash on hand indicating severe distress and imminent likelihood of closure
  3. Applicant's rolling 13-week cash flow forecast shows entity working at baseline levels
  4. Forecasted report unprofitability due to reduced income due to fewer elective surgeries and others

To be funded for Tier 2 (Moderate Need), the applicant must meet at least 3 of the following financial conditions:

  1. Operating margin is less than or equal to 0%
  2. Applicant is an independent (non-system) rural hospital that has less than 30 days cash on hand indicating severe distress, imminent likelihood of closure
  3. Applicant's rolling 13-week cash flow forecast shows entity working at a 15% or less loss
  4. Applicant reports unprofitability due to reduced income due to fewer elective surgeries and others not longer than 6 months

To be funded for Tier 3 (High Need), the applicant must meet at least 3 of the following financial conditions:

  1. Applicant has multiple consecutive years of operating margin less than or equal to 0%
  2. Applicant is an independent (non-system) rural hospital that reports no cash on hand indicating severe distress and imminent likelihood of immediate closure
  3. Applicant reports a debt-to-capitalization ratio greater than 50% indicating poor financial condition. Debt-to-capitalization ratio = Total Debt divided by Total Capital
  4. Applicant reports a rolling 13-week cash flow forecast that shows the entity working at a significant loss of more than 16%
  5. Applicant reports unprofitability due to reduced income due to fewer elective surgeries that is greater than 6 months
Geographic coverage
Texas
Amount of funding

Award Amounts:

Tier 1 Basic Need:

  • $100,000 in year 1
  • $50,000 in year 2

Tier 2 Moderate Need:

  • $175,000 in year 1
  • $87,500 in year 2

Tier 3 High Need:

  • $250,000 in year 1
  • $125,000 in year 2
Application process

Links to additional guidance, application instructions, and the online application portal are available on the program website.

Tagged as
Healthcare business and finance · Hospitals · Texas

Organizations (1)



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