Applications for the newly established $50 billion Rural Health Transformation Fund will commence in early September, as announced by Dr. Mehmet Oz, the Administrator of the Centers for Medicare & Medicaid Services (CMS). This substantial investment is part of the initiative known as the “One Big Beautiful Bill.” Its primary goal is to stabilize and modernize rural hospitals across the United States, particularly in light of anticipated Medicaid cuts.
According to Dr. Oz, the fund is intended to support various critical areas, including workforce development, optimizing healthcare systems, and leveraging technology to enhance services like telehealth. He stated, “This money is designed to help with workforce development, right-sizing the system, and using technology to provide things like telehealth that can change the world,” during an interview with CBS News.
Strengthening Rural Healthcare Delivery
The Rural Health Transformation Fund will promote state-led initiatives aimed at fortifying healthcare delivery in rural areas over the next five years. To gain access to this funding, states must submit a comprehensive Rural Health Transformation Plan to CMS by December 31, 2025. States that receive approval will benefit from a base funding amount, with additional allocations determined by the size of their rural populations and specific healthcare needs.
As the application period approaches, health systems and state officials are urged to collaborate effectively to ensure that rural communities receive the necessary resources to thrive. The forthcoming support from this fund represents a critical opportunity to address challenges faced by rural healthcare providers.
The implementation of these measures is expected to have a lasting impact on rural healthcare systems, enabling them to adapt to changing circumstances and improve patient care. With the deadline for plan submissions set for late 2025, now is the time for states to prepare and strategize to secure their share of the funding and to enhance the quality of healthcare in rural regions.
