Oregon Invests $37 Million to Protect Rural Maternity Care
Samaritan Hospitals Near Corvallis Will Benefit
While many Oregon communities, and ours specifically, continue to worry about the future of maternity care, the state is making a major investment aimed at keeping labor and delivery services available in rural hospitals.
Oregon is now distributing approximately $37 million in combined state and federal funding to help stabilize maternity care at 21 rural hospitals across the state. The funding is intended to help hospitals continue offering labor and delivery services. This funding was approved at a time when rising operating costs, workforce shortages, and financial pressures have forced hospitals to reduce or eliminate obstetrics programs. Sound familiar?
Hospitals receiving funding in our general area include Samaritan North Lincoln Health Center in Lincoln City, Samaritan Pacific Communities Hospital in Newport, Samaritan Lebanon Community Hospital, and PeaceHealth Peace Harbor Medical Center in Florence. Those facilities serve residents from Benton, Lincoln, Linn, and Lane counties, providing important alternatives for expectant mothers throughout the region.
The funding arrives as we have watched maternity services steadily disappear across parts of Oregon.
The Corvallis Clinic earlier this year announced it was no longer providing OB/GYN services, adding to concerns about access to maternity and obstetric care in the area. Services that were once available here now require travel to neighboring communities, placing a burden on patients during pregnancy and childbirth.
State leaders say the new funding is designed to prevent more hospitals and clinics from reaching that point. If only maybe Corvallis Clinic could have held out a bit longer.
Governor Tina Kotek said the investment is “intended to help ensure that families continue to have access to maternity care in their own communities.”
The funding combines approximately $15 million in state dollars with more than $22 million in federal matching funds, creating roughly $37.5 million that will be distributed to the 21 eligible rural hospitals providing labor and delivery services.
Hospitals that care for larger numbers of Medicaid patients are expected to receive a larger share of the funding.
While hospital leaders have welcomed the investment, they have also cautioned that it is only a temporary solution. Labor and delivery units are among the most expensive hospital services to operate, requiring around-the-clock staffing regardless of how many births occur each month. Rural hospitals struggle to cover those costs, particularly as reimbursement rates fail to keep pace with expenses.
The announcement reminds us that maternity care is becoming a regional issue rather than a local one. The Corvallis Clinic’s closure is not an isolated case. Our women’s healthcare options have shrunk, adding stress to nearby hospitals that many residents are now forced to rely on. This funding will help keep those services available, at least for now.
One-time funding won’t be enough to prevent future closures, but the investment represents an effort to preserve one of healthcare’s most essential services before more families are forced to travel even farther.
This article was written by K. Hewlitt at The Corvallis Inquirer. Feel free to send us your stories or articles to publish at: editor@corvallisnow.com
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Regarding Corvallis Clinic, it’s a shame that they dropped OB GYN services. However, the clinic is now owned and operated by OptumHealth, a subsidiary of UnitedHealth Group. Optum is a for profit heath care company that generated nearly $26 billion in third quarter profits in 2025, and is part of a larger vertically integrated health care enterprise that includes OptumRx pharmacies & UnitedInsight (the tech side of pharmacy & healthcare). It’s no surprise they would drop high cost services such as maternity care. However, they certainly don’t deserve our taxpayer dollars to provide basic & necessary services.
Side note, Optum already takes public money in the form of billions in Medicare dollars for their Medicare advantage plans. The money flows from the UnitedHealth insurance plans into the OptumHealth side of the ledger.