Rural Health Transformation Program

The program is meant to soften the coming cuts to Medicaid. The state health department recently announced the first round of Kansas grantees. Hospitals are using the money to increase healthcare access to rural patients.

Kansas received the sixth-highest amount among the states at $221 million.

Texas is set to receive the largest award from the federal Rural Health Transformation Program — with federal officials awarding $1.4 billion to the state over five years. The state received millions more in funding that it asked for in its application.

Texas' application for the Rural Health Transformation program requests $200 million every year of the five-year program. The state is proposing the "Rural Texas Strong" project, which includes a range of proposals to improve health care access and quality in rural areas — such as workforce development and utilizing AI.

Alongside the passage of billions of dollars in Medicaid spending reductions over a decade, Oklahoma is also vying for an opportunity available to all 50 states to fund sustainable rural health care initiatives.

As Texas develops its application for federal Rural Health Transformation Program funding, rural hospital leaders say stabilizing their facilities should be a top priority. "Without it, all the planning in the world will not matter because there will be no hospital left to transform," one said.