The Centers for Medicare and Medicaid Services (CMS) will distribute $50 billion across all 50 states to improve and modernize healthcare systems and services in rural areas. Delivered through the Rural Health Transformation Program (RHTP), CMS anticipates that the first tranche of funding in 2026 will have an average of $200 million per state. RHTP will empower states to expand healthcare accessibility in rural communities, bolster the rural health workforce, modernize facilities and technologies and support innovative models that elevate the quality and deliverability of care. Starting in 2026, $10 billion will be made available for all states over a five-year period. Recipients slated to receive the largest awards in 2026 include:
- Texas – $281.3 million.
- Alaska – $272.2 million.
- California – $233.6 million.
- Montana – $233.5 million.
- Oklahoma – $223.5 million.
- Kansas – $221.9 million.
Project deliverance will revolve around implementing comprehensive strategies to enhance care delivery, support providers and accelerate novel approaches to coordinating healthcare services in target communities. Half of the funding will be distributed equally between all states, while the remaining half will be allocated based on a variety of factors concerning the stature and condition of each state’s rural health system.
With funding now secure, states will work toward modernizing their health infrastructure and technologies in rural areas. These efforts will include investing in updated facilities and equipment; stronger cybersecurity and interoperability; and expanded telehealth, remote patient monitoring and digital tools. In addition, states may also explore the integration of innovative AI technologies and clinical workflow improvement tools to improve clinician working environments.
The expansion of preventative, primary, maternal and behavioral health services will be among the top priorities aligned with the federal government’s healthcare goals. In tandem with expansion efforts, states will also create new access points to increase healthcare availability near residences, elevating strong local health systems in the process. Emergency care in rural areas will be further enhanced through improved emergency medical services communication, treat-in-place options and coordinated transfers.
States will continue to empower community providers by streamlining operations to improve coordination of care and resources, fostering partnerships designed to promote local care. A major component of this approach will be establishing specialized hub-and-spoke models, rural regional centers of excellence, comprehensive data-sharing platforms and rural clinically integrated networks.
Additional efforts to innovate care models and reform payment systems hinge on piloting new primary and value-based care models while strengthening rural partnerships and promoting regional collaboration. Long-term sustainability will depend on growing a strong, sustainable clinical workforce in rural areas. Plans to raise the next generation of healthcare workers include establishing workforce training, residencies, recruitment, retention incentives and creating new pathways to help students begin healthcare careers. States plan to simultaneously expand training opportunities for the existing clinical workforce.
Photo by Marta Branco from Pexels
The SPI Research Team is now accepting subscriptions from companies that want an ongoing ‘insider’s view” of how each state will allocate this funding (available annually for the next 5 years). SPI will provide all initial procedures, funding allocations made, specific project information, and everything else for the entire year of 2026. Research will also be available for upcoming years. Subscribers can pick one state, several states, or all states and have everything needed to pursue the opportunities these funds will generate. Call 512-531-3900 or email spisales@spartnerships.com for details.