North Shore Health seeks $1.4 million in federal rural health funding
The effects of House Resolution 1, also known as the One Big Beautiful Bill Act, are expected to be felt in 2027 as changes to Medicaid administration and eligibility take effect. Health care providers are expected to face increased financial pressures, adding strain to institutions already operating with limited resources.
To offset some of the effects on rural health care, the Rural Health Transformation Fund was established as part of the law, providing $50 billion for rural health care across all 50 states. States applied for portions of the funding, with health care providers then submitting applications through their states.
North Shore Health has identified the program as a potential source of funding for IT infrastructure needed to support a new electronic medical record system.
“So much is happening in the world of IT, whether it’s your electronic record, whether it’s telehealth, whether it’s our virtual hospitalists. We have some virtual ED services, trying to do some virtual behavioral health, and all of that is predicated on having a pretty good IT platform, and so we really need to expand that, ” North Shore Health CEO Kimber Wraalstad told WTIP.
According to Wraalstad, the Minnesota Department of Health would submit North Shore Health’s grant application to the Centers for Medicare & Medicaid Services, which would give final approval. Wraalstad told WTIP that a meeting was scheduled for Aug. 3 to review the hospital’s application.
“My understanding from peers that are kind of going through it right now is that they review all the stuff with the organization, maybe make some minor modifications,” Wraalstad told WTIP. “I haven’t heard anybody that’s had to go back and do a major redo, which I’m hopeful on, considering we’re so late in the project.”
North Shore Health applied for approximately $1.4 million. The application process has been lengthy, but Wraalstad said she is optimistic about moving forward.
North Shore Health has taken steps to improve its chances of receiving the funding. The hospital submitted its application ahead of the deadline and met with state officials to ensure its request met the project’s requirements.
Wraalstad said there is additional caution surrounding the application because the funding is provided through reimbursement, meaning the hospital would not receive the money until after it incurs approved expenses.
Minnesota officials anticipate the state could lose $1.1 billion in health care funding, along with increased out-of-pocket costs for enrollees and additional administrative burdens for hospitals and counties. While the Rural Health Transformation Fund could provide relief to rural providers, Wraalstad has said the funding would not offset the broader financial effects of the law.
”I think that’s disingenuous, and I don’t think that’s realistic,” Wraalstad said in an interview earlier this year. “There is no way that any funds that are available through this are going to cover the losses that are going to be seen in health care.”
The financial pressures facing rural health care providers have also surfaced elsewhere in the region. Aspirus Lake View recently held a meeting regarding the closure of its clinic in Silver Bay. During the presentation, Aspirus Lake View cited clinician shortages and rapidly changing health care delivery across the country among the reasons for the closure.
WTIP spoke with North Shore Health CEO Kimber Wraalstad about the Rural Health Transformation Fund, the effects of recent wildfires and other issues facing the hospital. Audio of the conversation can be found below.
Josh Hinke August 3, 2026
