On Dec. 29, North Carolina was allocated $213 million to fund rural health care in North Carolina under the Rural Health Transformation Program, a $50 billion initiative under the Working Families Tax Cut Act signed into law earlier this year.
The Centers for Medicare and Medicaid Services (CMS) announced the $50 billion initiative, which allocates money for rural health care services in all 50 states, under the Rural Health Transportation (RHT) Program established by the legislation.
The RHT program will be executed by the Office of Rural Health Transformation (ORHT), which was established on Dec. 29 under the Center for Medicaid and CHIP Services (CMCS), according to a press release. The ORHT approved the award recipients and will guide states in implementing rural health transformation plans, coordinating federal and state partnerships, providing technical assistance, and ensuring oversight and accountability of the five-year program, which will run through Sept. 30, 2031.
“North Carolina has the second-largest rural population in America, home to 7.6% of our nation’s rural residents,” said US Sen. Tedd Budd, R-NC, in a press release. “Today’s announcement by the Centers for Medicare & Medicaid Services (CMS) of $213 million from the Rural Health Transformation Program will greatly benefit patients across our state. While I was proud to support the inclusion of this funding in the Working Families Tax Cut Act, it is unfortunate that the State’s application was not appropriately coordinated with federal officials and did not request funding levels that more accurately correlate with our significant rural population.”
Earlier this year, the North Carolina congressional delegation sent a bipartisan letter to Dr. Mehmet Oz, administrator of CMS, to advocate for the North Carolina Department of Health and Human Services (NCDHHS) RHT program application.
“The federal government has announced that North Carolina will receive $213 million in the first year of the Rural Health Transformation Program,” the North Carolina Healthcare Association told the Carolina Journal. “While this funding will not come close to offsetting the losses hospitals will face as a result of Medicaid cuts in HR-1, the North Carolina Healthcare Association (NCHA) appreciates the recognition of the significant challenges facing rural communities in a state with the second-largest rural population in the nation. NCHA looks forward to working with the North Carolina Department of Health and Human Services to ensure that hospitals receive a substantial share of these very limited funds.”
“Today marks an extraordinary milestone for rural health in America,” said Oz in a press release. “Thanks to Congress establishing this investment and President Trump for his leadership, states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running. CMS is proud to partner with every state to turn their ideas into lasting improvements for rural families.”
Editor’s note: This story has been updated to include a comment from the North Carolina Healthcare Association.