CHESAPEAKE, W.Va. — A West Virginia nonprofit that provides community exercise, nutrition, and recovery programs has been awarded $1.17 million to bring healthcare services closer to workers as the state begins distributing nearly $200 million in federal rural-health funding.
Spotted Owl Healthcare Organization, based in Dunbar, received $1.174 million through West Virginia’s Rural Health Transformation Program and will partner with Chesapeake Healthcare Center to establish or expand employer-based health services. Gov. Patrick Morrisey announced the award Friday at an event at the center.
The award is the largest of the program’s first three grants. Together, the awards total nearly $2.4 million and are among the first expenditures from the $199.5 million West Virginia received for 2026 through the federal program.
The worksite initiative is intended to give employees easier access to preventive screenings, occupational health services, care coordination, referrals to primary care, and support for chronic health conditions that can interfere with employment.
The organizations have not publicly identified the employers or worksites that will participate, the number of workers they expect to serve, or how they will spend the $1.174 million. Those details are significant because applicants were expected to demonstrate employer participation and provide an operational plan and detailed budget as part of the grant process.
Grant builds on community wellness programs
Spotted Owl was incorporated in West Virginia in 2018 and has operated community health and wellness programs in the Kanawha Valley. Its Healthy Life 360 program combines physical activity, nutrition education, recovery support, and community activities to help participants develop healthier routines and manage chronic health conditions.
In 2025, the Pallottine Foundation of Huntington awarded Spotted Owl $10,000 to support Healthy Life 360 programming in Kanawha County. The foundation described the program as offering free cardiovascular health cooking classes, yoga, Zumba, and specialized exercise classes, as well as cooking and fitness programming for people and families in recovery.
Spotted Owl has also worked with Active Southern West Virginia since 2022 to provide free physical activity programming in Kanawha County. Earlier state funding supported Spotted Owl programs focused on fitness, nutrition, and activities aimed at reducing obesity.
The $1.174 million award moves the organization beyond those smaller community-wellness efforts and into a partnership that provides employer-based health services.
Chesapeake Healthcare Center will provide healthcare services and expertise as part of the project. The Chesapeake facility, which opened in 2018, provides primary care, behavioral health services, addiction treatment, and wellness services. The state licenses it as a behavioral health center.
“We are incredibly honored that Chesapeake Healthcare Center has the opportunity to be part of this work,” Executive Director and co-founder Genise Lalos said. “This partnership gives us another way to meet West Virginians where they are and help more people receive the care and support they need. We are excited to work alongside Spotted Owl to build healthier communities and create meaningful, lasting change.”
State links healthcare to keeping people working
The grant is part of Health to Prosperity, an initiative within West Virginia’s broader Rural Health Transformation effort that explicitly links health outcomes to the state’s workforce.
When the state announced the $2.4 million worksite-clinic funding opportunity in June, officials said projects could offer preventive screenings and health-risk assessments, occupational health and work-readiness services, care coordination and referrals, and assistance for conditions including diabetes, cardiovascular disease, musculoskeletal problems, and substance use disorder.
The approach aims to improve access to healthcare by bringing some services closer to where people work, while addressing health problems that can contribute to absenteeism or keep people from staying employed.
Applicants were expected to demonstrate employer participation and the ability to begin initial operations within 90 days of receiving an award, meaning services associated with the first grants could begin before the end of 2026.
“West Virginia is home, and I have always believed that when we invest in our people, we invest in the future of our communities,” Chesapeake Healthcare Center President and co-owner Andy Yerrid said. “We are proud to be part of a partnership that will help bring more resources, better access to care, and new opportunities for healthier lives to West Virginians.”
The other two recipients in the first round are CAMC/Vandalia Health and the Cabell Huntington Foundation, each of which received $612,000.
Nearly $200 million begins moving through West Virginia
The much larger story behind Friday’s announcement is the influx of rural health funding now moving through West Virginia.
The federal Centers for Medicare & Medicaid Services awarded the state approximately $199.5 million for 2026 through the Rural Health Transformation Program. The nationwide program provides $50 billion over five years to help states improve rural healthcare.
West Virginia’s Department of Health is administering the state’s share through several initiatives addressing access to care, chronic disease, and the healthcare workforce.
Friday’s approximately $2.4 million in awards therefore represents only a small portion of West Virginia’s initial federal allocation, with considerably more funding expected to be distributed through other projects.
For Spotted Owl, however, the first round marks a substantial step beyond the community wellness programs it has previously operated.
“Through the partnership, Spotted Owl Healthcare Organization will combine its community-based wellness programming with CHC’s healthcare services and expertise to help connect more West Virginians with care and support,” the organizations said in announcing the award.
State Del. Tresa Howell and state Sen. T. Kevan Bartlett also attended Friday’s announcement in Chesapeake.