Congress gave Nebraska millions for healthcare.

State hospital leaders say the money is being squandered. OSHKOSH – Things were already grim at Garden County’s only hospital. Its partnership with a larger, regional hospital ended two years ago. It cycled through three CEOs in the 18 months afterward. Then came the Chapter 9 bankruptcy filing in August. The 58-year-old hospital with an $11 million annual operating budget is more than $1 million in debt. But there was, until last month, reason for hope. When Congress voted in 2025 to deeply cut Medicaid spending over the next decade, it set aside a $50 billion relief fund meant to shield rural health providers from the brunt of the reductions. Nebraska has received $218 million of that funding. But a new Flatwater analysis shows that less than 20% of what the state has spent thus far has actually gone to the state’s rural hospitals, though state leaders say more will filter down and ultimately reach rural Nebraska.

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