“It’s all about teamwork,” said Garlan Gudger, Alabama Senate President Pro Tempore, speaking at a recent luncheon at Regions Center that brought together state lawmakers, rural hospital leaders and Regions executives to mark early success of the Alabama Rural Hospital Tax Credit Program.
Gudger’s Senate District 4 includes Cullman Regional Medical Center, one of five rural hospitals that received a $100,000 donation from Regions Bank through the tax credit program.
He was joined at the luncheon by Danne Howard, President of the Alabama Hospital Association, additional legislators, hospital administrators and members of the Regions Commercial Banking team.
“It takes a team to create and execute a program like this,” Gudger said. “Today is about recognizing what can be accomplished when business, government and healthcare leaders work together.”
The setting, and the varied mix of leaders gathered in the room, reflected how access to healthcare has become a top-of-mind issue across industries and affiliations in Alabama and beyond. Rural hospitals are often the sole providers of emergency, inpatient and outpatient care for their communities. Yet many operate on thin margins due to lower patient volumes, a higher percentage of uninsured or underinsured patients, rising labor and supply costs and aging facilities.
Beyond patient care, rural hospitals play a vital role in local economies. They are often among the largest employers in their communities and serve as anchors for economic development. A stable hospital helps rural communities attract and retain businesses, supports workforce participation and provides reassurance to families considering where to live and work. In that way, investments made through the tax credit program contribute to the overall vitality and resilience of rural Alabama.
That connection between healthcare and economic strength is a key reason Regions chose to participate in the program. As the largest bank in its headquarters state, Regions recognizes that strong communities depend on strong institutions, including local hospitals that can meet the needs of residents and employers alike.
Regions’ involvement also builds on experience in neighboring states. The bank participated in a similar rural hospital tax program in Georgia over the last two years, contributing more than $1million to hospitals in Elberton, Jackson, Hazelhurst and Madison. That experience demonstrated how targeted, well‑structured tax credit programs can deliver meaningful, local impact.
So, when Leroy Abrahams, head of Community and Market Engagement at Regions, learned about Alabama’s Rural Hospital Investment Tax Credit Program, the decision to participate at the maximum level — $500,000, resulting in five $100,000 hospital donations — was a natural fit.
“At Regions, our Community Engagement strategy focuses on creating greater financial wellness, supporting workforce readiness and strengthening economic development,” he said. “Rural hospitals sit at the intersection of all three. This program allows us to invest in places where the impact is both immediate and lasting.”
Supporting rural hospitals is not only the right thing to do — it’s essential to the long‑term health of our communities.
Wendi Boyen, head of Community Development Lending & Investments at Regions
That connection is especially clear from a community development perspective.
“Health care access is deeply connected to economic opportunity,” said Wendi Boyen, head of Community Development Lending & Investments at Regions. “If a community doesn’t have a stable hospital, it becomes much harder to attract employers, retain workers or prepare the next generation for success. Supporting rural hospitals is not only the right thing to do — it’s essential to the long‑term health of our communities.”
In addition to Cullman Regional Medical Center, the other Alabama hospitals receiving $100,000 donations from Regions were D.W. McMillan Memorial Hospital in Brewton, Fayette Medical Center, Highlands Medical Center in Scottsboro and UAB St. Vincent’s Blount in Oneonta.
According to Howard, the tax credit program provides essential support to hospitals facing mounting financial pressures. Unlike many businesses, hospitals cannot simply raise prices when costs increase – particularly in rural areas where patients often have limited insurance coverage or fixed incomes.
“This program recognizes the reality rural hospitals are facing,” Howard said. “And it’s encouraging to see corporations stepping up to help make a difference.”
The Alabama Rural Hospital Investment Tax Credit Program allows individuals and businesses to make financial contributions to eligible rural hospitals in exchange for a dollar-for-dollar state tax credit.
By leveraging private-sector investment to support essential health care infrastructure, the program addresses longstanding financial challenges facing rural hospitals while helping preserve access to care close to home.
Funds generated through the program may be used for a wide range of operational and capital needs. At the Regions event, hospital administrators described how the donations would support critical services. Leaders from hospitals in Cullman and Brewton highlighted plans to expand obstetrics and neonatal intensive care services – programs that are often the first cut when budgets tighten.
“OB deserts are common in rural areas,” Howard explained, citing the significant costs associated with labor and delivery services. “Hospitals frequently face the impossible choice of discontinuing those services or closing altogether.”
Other hospital leaders spoke about using the funds to invest in diagnostic tools such as ultrasound and mammography equipment. Expanding access to diagnostics allows for earlier detection of cancer and other serious illnesses – improving patient outcomes while also reducing long-term healthcare costs and economic strain on communities.
According to Jason Isbell, head of State Government Affairs and Economic Development at Regions, the program demonstrates how thoughtful public policy, paired with private-sector participation, can produce meaningful and measurable results.
“Regions’ participation in the Alabama Rural Hospital Investment Tax Credit Program – along with similar efforts in Georgia – reflects our broader commitment to community and economic development,” Isbell said. “By investing in rural hospitals, we’re supporting institutions that are foundational to long-term community strength and growth.”
By investing in rural hospitals, we’re supporting institutions that are foundational to long-term community strength and growth.
Jason Isbell, head of State Government Affairs and Economic Development at Regions