Roan Mountain Medical Center is the primary medical facility in a rural mountain area in Tennessee.
Photo: Joel Carillet/Getty Images
The Centers for Medicare and Medicaid Services is making available to states $50 billion in Rural Health Transformation Program funds.
Eligible providers, such as rural hospitals, critical access hospitals, federally qualified health centers and rural clinics, can access the funds by collaborating with their state health departments.
The $50 billion will be allocated to approved states over five years, with $10 billion available each year beginning in federal fiscal year 2026.
Half of the funding will be evenly distributed to all states with an approved application. The other half will be awarded to approved states based on individual state metrics and applications that reflect the greatest potential for an impact on the health in rural communities, CMS said.
The deadline for states to apply is Nov. 5. There is only one opportunity to apply for funding and one application period. CMS will announce awardees by Dec. 31.
WHY THIS MATTERS
The investment, made possible by Congress under the One Big Beautiful Bill Act, is designed to transform existing rural healthcare infrastructure and build sustainable healthcare systems, CMS said.
All 50 states are invited to apply to address each state’s specific rural health challenges.
The program enables states to develop innovative, enduring, state-driven solutions to tackle the root causes of poor health outcomes specific to rural America.
CMS outlined five strategic goals:
- Supporting rural health innovations promoting preventative health and addressing the root causes of diseases;
- Helping rural providers become long-term access points for care by improving efficiency and sustainability;
- Attracting and retaining a highly skilled healthcare workforce by strengthening recruitment and retention of healthcare providers;
- Sparking the growth of innovative care models to improve health outcomes, coordinate care and promote flexible care arrangements;
- Fostering the use of innovative technologies that promote efficient care delivery, data security and access to digital health tools.
THE LARGER TREND
The rural health fund of $50 billion is a little over one third (37%) of the estimated loss of federal Medicaid funding in rural areas, according to KFF.
The One Big Beautiful Bill Act reduced federal Medicaid spending by $911 billion over 10 years, which is expected to lead to 10 million more people becoming uninsured by 2034 based on Congressional Budget Office (CBO) estimates, the KFF report said.
Members of Congress from both parties raised concerns about the potential impact on rural hospitals and rural hospital closures. Just prior to passage, the Senate added $50 billion in funding for the rural health fund.
ON THE RECORD
“Rural communities are the bedrock of America. They have waited too long for Washington to act. Now, at last, we are acting with the largest investment ever made to improve healthcare for rural Americans,” said Health and Human Services Secretary Robert F. Kennedy Jr.
Email the writer: SMorse@himss.org