The Centers for Medicaid and Medicare Services (CMS) unveiled a Notice of Funding Opportunity (NOFO) for the Rural Health Transformation (RHT) Program on Sept. 15, offering details on how states can apply for a share of $50 billion in available funds.
The program was established as part of the One Big Beautiful Bill Act passed earlier this year. It creates a fund of $50 billion to be distributed to states over a period of five years. The goal, according to health officials, is to strengthen and improve healthcare access for Americans living in rural areas.
The program is broken down into five major efforts:
- Make rural America healthy again
- Sustainable access.
- Workforce development.
- Innovative care.
- Tech innovation.
The first initiative supports both innovation and the creation of new healthcare access points in rural areas. According to the project website, this will bolster preventative health practices and address the root causes of disease. Projects in this space will take an evidence-based approach to the care they provide. This includes disease prevention, chronic disease management and behavioral health and parental care.
Sustainable access helps providers long-term by improving efficiency and sustainability. Programs in this category will use RHT support to collaborate and share valuable resources. This includes working with similar facilities or regional systems to improve operations, technology, emergency services and primary and specialty care.
Workforce development targets recruitment and retention programs for healthcare workers operating in rural areas. This involves helping local providers strengthen their practice and developing a larger, more diverse workforce to serve the community through recruitment efforts. Possible roles include pharmacists, community health workers and those trained to help patients work through the healthcare system as they receive care.
Innovative care works to improve healthcare models and outcomes and promote a more flexible care arrangement for patients. The program will develop and implement payment systems that incentivize healthcare providers to provide improved care at lower overall costs.
Tech innovation delivers cutting edge technology as a means of providing more efficient care. The program will foster the use of this technology to provide increased data security and access to digital health tools not otherwise available. Projects in this space will revolve around remote care options, upgraded cyber security systems, better data sharing and access to emerging technologies in rural areas.
The program begins in fiscal year (FY) 2026, with funds slated for distribution over a five-year period. CMS will distribute $10 billion annually, with 50% allocated by CMS based on multiple data points and the other 50% distributed equally among all states with approved projects. The data CMS will review for distribution includes population, proportion of healthcare facilities, certain hospital situations and other factors.
CMS provided a list of approved uses of RHT funds in the NOFO. States must use any awarded funds for at least three of the approved uses to remain eligible. Only the 50 U.S. states are eligible to apply for funds.
CMS will host two webinars for potential applicants Sept. 19 and 25. Applications are due Nov. 5, with awardees announced by Dec. 31. CMS will continue to partner with awardees through the project timeline to ensure efficient, appropriate use of funds.
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