In late 2025, using a newly developed Rural Health Transformation Plan, the commonwealth applied to the U.S. Centers for Medicare & Medicaid Services, competing with states nationwide for funding to support the initiative. On Dec. 30, 2025, Gov. Josh Shapiro’s administration announced that Pennsylvania was awarded $193 million in federal funding to improve access to health care in rural communities. The award represents the first of up to five possible annual funding tranches.
Pennsylvania’s rural health transformation plan was developed over two years through feedback from rural stakeholders, community and education leaders, county commissioners and members of the General Assembly. The plan establishes six primary focus areas:
- Technology and infrastructure
- Workforce
- Maternal health services
- Behavioral health services
- Aging and access
- EMS and transportation
The Capital Region Economic Development Corporation (CREDC) is part of the plan’s performance delivery system, which will establish regional Rural Care Collaboratives. Coordinators from the commonwealth’s Partnerships for Regional Economic Performance (PREP) have been asked to recommend participants for each region’s collaborative.
As the Southcentral PREP coordinator, CREDC is evaluating the composition of the collaborative representing the region. The group will be responsible for identifying priority investments needed to advance the Rural Health Transformation Plan in southcentral Pennsylvania.
While participants and operational processes are still being finalized, several factors may affect timing and implementation. Organizers must balance strong regional representation with maintaining a manageable group size. Additional guidance and definitions under the federal award are still being clarified to ensure compliance and effectiveness.
Southcentral Pennsylvania has relatively few qualifying rural census tracts under the program compared with other regions of the commonwealth. Those tracts are geographically dispersed, which may complicate participation and access to funding.
The Pennsylvania Department of Human Services has indicated it will appoint a collaborative manager for each region. That role is expected to influence how the southcentral collaborative functions.
CREDC has heard from many stakeholders eager to contribute to the effort. The organization expressed optimism about the initiative and the opportunity to convene partners around a shared goal of strengthening rural health care access.
About the Harrisburg Regional Chamber & CREDC
For 140 years, the Harrisburg Regional Chamber & CREDC has served as the region’s catalyst for economic prosperity. The organization combines business, community, and economic development services to enhance the region’s vitality and livability. The Chamber is a five-star accredited chamber through the U.S. Chamber of Commerce—a distinction held by fewer than 1 percent of chambers nationwide. CREDC is the Certified Economic Development Organization (CEDO) approved by the Commonwealth’s Department of Community and Economic Development to perform economic development activities using Pennsylvania’s funding programs in Cumberland, Dauphin, and Perry counties.
