Rural Health Care

About Rural Health Care

California’s rural hospitals are essential lifelines for over 2 million residents, providing critical health care services and acting as economic anchors in their communities. However, these hospitals face severe financial challenges, with more than half operating at a loss. This financial strain has led to the reduction or elimination of vital services, such as obstetrics and cancer treatments. The California Hospital Association is actively advocating for immediate financial support for the development of sustainable funding models to ensure that all Californians, regardless of location, have access to the health care they need and deserve.  

The California Critical Access Hospital Network (CCAHN) creates collaborative working relationships among California’s critical access hospitals to strengthen their ability to care for their communities through sharing resources, education, and innovation.  

Rural Health Transformation Program

On July 4, 2025, President Trump signed a landmark budget reconciliation bill into law—one that dramatically reshapes the nation’s health care landscape. The legislation includes major tax cuts and sweeping reductions in federal health care spending, most notably slashing Medicaid funding by $911 billion over the next decade. According to the Congressional Budget Office, this could result in 10 million more Americans being uninsured by 2034.