Doctors: $203M Rural Health Grant could help reverse Alabama’s physician shortage

MONTGOMERY – The Medical Association of the State of Alabama says a $203.4 million federal award to Alabama under the Rural Health Transformation Program presents a critical opportunity to address one of the state’s most pressing healthcare challenges: a growing shortage of physicians, especially in rural communities.

Alabama ranks near the bottom nationally in the number of doctors per patient. For every 100,000 residents, the state has just 241 primary care physicians, placing Alabama 45th among the states.

“The causes of Alabama’s doctor shortage are many, including physician retirements, physician burnout, a challenging medical liability environment, and reimbursement rates that rank among the lowest in the country,” said Dr. Mark LeQuire, president of the Medical Association. “But regardless of the cause, the solution is clear: Alabama must train, recruit and retain more physicians.”

In its application for the federal funds, Alabama outlined plans to integrate rural healthcare systems, expand access to maternal care and strengthen the rural healthcare workforce. State officials also acknowledged that rural hospitals are closing or losing specialty services in part because they cannot recruit and retain physicians.

Dr. LeQuire said one of the most effective uses of the funding would be to expand Graduate Medical Education by supporting additional residency slots in high-need specialties such as primary care.

“Doctors are far more likely to practice where they complete their residency training,” Dr. LeQuire said. “By investing in residency programs, Alabama can grow its physician workforce, improve access to care and strengthen the quality of life in rural communities.”

The Alabama Legislature is expected to consider legislation during the 2026 legislative session to support implementation of the Rural Health Transformation Program, which was created under the One Big Beautiful Bill Act passed by Congress last summer.

The Medical Association is grateful to Governor Ivey, the State Health Planning and Development Agency and ADECA for working diligently and quickly to successfully submit Alabama’s rural health application.