State Submits Application for Federal Rural Health Transformation Funding
(Nov. 11, 2025) In a Nov. 6th press release, the Department of Health (DOH) announced that NYS has submitted its application for federal Rural Health Transformation (RHT) Program funding to the Centers for Medicare and Medicaid Services (CMS). The RHT, enacted as part of H.R. 1 in response to concerns regarding rural hospital viability, is meant “to empower states to strengthen rural communities by improving healthcare access, quality, and outcomes by transforming the healthcare delivery ecosystem.” The $50 billion in total program funding will be allocated to approved states over five years, with $10 billion of funding available in each fiscal year from 2026 through 2030. CMS indicates that decisions on state awards will be made by Dec. 31, 2025.
NYS' application lists four overarching initiatives:
- Establish coordinated rural health partnerships: These partnerships between rural hospitals and health care organizations will enhance patient access to a wide range of providers across the care continuum to address both health and social needs.
- Strengthen rural communities with technology-enhanced primary care: Improve rural patient access to and utilization of high-quality primary care through the Patient-Centered Medical Home model with the incorporation of artificial intelligence where appropriate.
- Build a sustainable rural health care workforce: Create a self-sustaining cycle of workforce development and pipeline that addresses both immediate staffing needs and long-term capacity-building, ensuring that NY's rural communities have continuous access to high-quality health care services tailored to their regional circumstances.
- Invest in technology innovation and cybersecurity enhancements: Expand access to care through telehealth, improving patient outcomes through eConsult partnerships, increasing usable alerts in rural counties, and strengthening cybersecurity of rural facilities.
LeadingAge National reports that all 50 states have submitted applications. A project sponsored by the Robert Wood Johnson Foundation provides a webpage that tracks state RHT Program applications and links to many state transformation plans and/or plan summaries. The CMS webpage dedicated to the program is here.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841