Rural Health Transformation Program: Submit Your Input
Introduction
H.R. 1, signed by President Trump on July 4, 2025, provides a $50 billion fund for States with an approved Rural Health Transformation Plan (RHTP). The RHTP will be administered at the federal level through the Centers for Medicare and Medicaid Services (CMS). The North Carolina Department of Health and Human Services is preparing to submit its application to receive funding for the Rural Health Transformation Program (RHTP). CMS must approve or deny the State’s Rural Health Transformation plan by December 31, 2025.
Purpose
NCDHHS seeks to gather ideas, data, and approaches from partners such as rural health care providers, professional associations, public institutions, industry associations, and academia, in support of North Carolina’s proposed application to CMS for the RHTP. NCDHHS seeks input on programs that align with the required plan components that the State must specify how it will achieve RHTP objectives and fall within the scope of allowable activities (Activities Eligible for Funding).
About the RHTP
The RHTP provides $10 billion annually for FY2026 through FY2030, and states have two years to spend each year’s allocation. Each eligible state will receive a base allocation split evenly, with additional funds to be distributed by CMS based on each state’s rural population, rural health facilities, and other factors outlined in Section 71401 of H.R. 1.
To receive funding states must submit a Rural Health Transformation Plan to meet these objectives:
- To improve access to hospitals, other health care providers, and health care items and services furnished to rural residents of the State;
- To improve health care outcomes of rural residents of the State;
- To prioritize the use of new and emerging technologies that emphasize prevention and chronic disease management;
- To initiate, foster, and strengthen local and regional strategic partnerships between rural hospitals and other health care providers to promote measurable quality improvement, increase financial stability, maximize economies of scale, and share best practices in care delivery;
- To enhance economic opportunity for, and the supply of, health care clinicians through enhanced recruitment and training;
- To prioritize data and technology-driven solutions that help rural hospitals and other rural health care providers furnish high-quality health care services as close to a patient’s home as possible;
- That outlines strategies to manage long-term financial solvency and operating models of rural hospitals in the state; and
- That identifies specific causes driving the accelerating rate of stand-alone rural hospitals becoming at risk of closure, conversion, or service reduction.