Alabama Eyes New Doctors, Better Care With $203 M Grant
Federal Rural Health Transformation funding aims to boost physician training and care access in Alabama’s rural counties amid a persistent doctor shortage
Alabama’s rural health care landscape could see meaningful change after the State received more than $203 million in federal funds from the Rural Health Transformation Program, health leaders say.
The award, part of a $50 billion nationwide initiative to strengthen care in rural areas, positions Alabama to expand its medical workforce and improve access in communities that long have struggled with doctor shortages.
Alabama ranks 45th in the nation for primary care physicians, with just 241 per 100,000 residents — a shortfall that has strained local clinics and hospitals in small towns across the State.
Officials and medical leaders say the funding could help ease that gap. Dr. Mark LeQuire, President of the Medical Association of the State of Alabama, noted several causes of the shortage, from retirements and burnout to low reimbursement rates and a challenging liability climate. “Alabama must train, recruit and retain more physicians,” Dr. LeQuire said in a statement.
In its federal application, the State outlined plans to integrate rural health systems, broaden maternal care access, and strengthen the overall workforce. The application also acknowledged that many rural hospitals are closing or losing specialty services in part because they cannot recruit or retain physicians.
One priority is expanding Graduate Medical Education by adding more residency slots in high-need fields such as primary care. “Doctors are far more likely to practice where they complete their residency training,” Dr. LeQuire said, emphasizing that residency investment could grow Alabama’s physician workforce and raise care quality in rural communities.
The Rural Health Transformation Program was created under the One Big Beautiful Bill Act, passed by Congress in 2025, and is designed to help States modernize rural care, strengthen workforces, and expand services. Alabama’s funding approval marks the first year of a five-year effort.
Gov. Kay Ivey and the Alabama Department of Economic and Community Affairs will oversee the program in the State. Ivey and State partners worked quickly to prepare and submit the application after the federal law was signed.
Lawmakers are expected to consider supporting legislation during the 2026 legislative session to help implement the project. In the 2025 session, lawmakers passed the Rural Hospital Investment Act of 2025, which established the Rural Hospital Investment Program, offering State tax credits to individuals and businesses that donate to qualifying rural hospitals. Taken together, these programs have the potential to significantly improve the level of care available to Alabamians in rural areas.
