The Alabama Hospital Association announced Thursday that the $20 million tax credit cap for the Alabama Rural Hospital Investment Program has been fully met, just one month after the program opened January 5.
“This extraordinary response from individuals and businesses across the state speaks volumes about how much rural hospitals matter to the people they serve,” said Vernon Johnson, chair of the AlaHA Board of Trustees and chief executive officer of Dale Medical Center. “Communities across Alabama stepped up immediately because they know access to local health care is essential to caring for families, supporting local jobs and sustaining community economies.”
Approved by the Alabama Legislature during the 2024 legislative session, the Alabama Rural Hospital Investment Program was created to strengthen the financial stability of rural hospitals by encouraging private donations from individuals and businesses, with the added benefit of a state tax credit. Modeled after Georgia’s highly successful HEART program, the initiative enables donors to invest directly in health care delivery systems serving their communities.
“As a nurse and someone who has spent years working on health care delivery issues at both the state and federal level, I know how essential local hospitals are to the safety and well-being of families across Alabama,” said Senator April Weaver, R-Brierfield.
“When we worked to develop the Rural Hospital Investment Program, our goal was to give communities a practical way to support the hospitals that are so central to rural life,” said Representative Terri Collins, R-Decatur. “Seeing the cap met so quickly confirms that Alabamians understand the value of these hospitals, not only for health care, but for jobs and economic stability in their hometowns.”
Danne Howard, AlaHA president and CEO, said the program’s creation was made possible by strong legislative leadership and broad support across the Legislature.
“The success of this program would not have been possible without lawmakers who understood the vital role rural hospitals play in their communities,” Howard said. “Alabama’s hospitals are grateful to Weaver, Collins, legislative leadership and members of the Legislature for their support of the Alabama Rural Hospital Investment Program and their commitment to strengthening health care access across the state.”
Interest in the program was so strong that the cap could have been reached even sooner, Howard said, reflecting the normal early administrative steps involved in launching a new statewide initiative.
“The speed at which the cap was met shows just how eager Alabamians were to support their rural hospitals,” Howard said. “The overwhelming response to this program demonstrates both the need and the opportunity to continue strengthening rural health care across the state.”
Joseph Marchant, chair of the AlaHA Rural Hospital Constituency Section and chief executive officer of Bibb Medical Center, said the swift and generous participation of donors reflected broad recognition of the impact rural hospitals have throughout Alabama.
“This was a clear show of local support,” Marchant said. “Individuals and businesses invested because these hospitals care for their neighbors, provide jobs and anchor their communities. That level of engagement is incredibly meaningful.”
Johnson said the next step with the inaugural cap reached in record time is to build on the program’s momentum.
“The support for this program is undeniable,” Johnson said. “We look forward to working with policymakers to grow the program and increase the cap so even more rural hospitals and communities can benefit.”
