Navigating the $50B Rural Health Transformation Program (RHTP)
- Kaitlin Knapp
- Sep 24
- 2 min read
The Rural Health Transformation Program (RHTP), established under the One Big Beautiful Bill Act, is a $50 billion federal initiative designed to stabilize and strengthen rural healthcare across the United States. The program addresses the major challenges rural hospitals face, including low patient volumes, critical workforce shortages, outdated infrastructure, and shifting reimbursement models. Its goal is to ensure long-term stability and improve access to care in rural communities nationwide.
How the Funding Works: Funding flows through state governments. Of the $50 billion allocated, 50% is divided equally among all approved states, while the remaining 50% is distributed using a formula based on rural population, number of rural hospitals, and the proportion of hospitals serving low-income patients. If all 50 states participate, each could receive a minimum of $100 million annually for five years. Funds are flexible, allowing states and hospitals to prioritize areas such as financial stabilization, workforce development, technology upgrades, and long-term sustainability planning.
Dates to Know:
Mid-September 2025: Application released
Late September 2025: Introductory webinars
October 2025: Application preparation
Early November 2025: Application submission deadline
By December 31, 2025: Awardee decisions
2026: Ongoing CMS monitoring and support
Steps for Rural Hospitals and Providers to Engage:
Confirm State Participation:Â Contact your state health department, rural health association, or Medicaid agency to verify if your state has submitted an application.
Advocate for Your Hospital’s Needs: Share financial data, patient volume, infrastructure gaps, workforce shortages, and technology needs with your state agency.
Respond to State Requests for Information: Be prepared to submit documentation promptly to support your hospital’s case for funding.
Participate in Shaping the State Plan:Â Engage in stakeholder meetings, advisory boards, or public comment opportunities to help influence funding priorities.
Monitor Funding and Compliance:Â Ensure proper use of funds, maintain transparency, and track outcomes to demonstrate impact.
WY It Matters: For rural hospitals in Wyoming and across the nation, the RHTP provides a critical lifeline. It ensures hospitals can remain operational, recruit and retain healthcare professionals, modernize infrastructure and technology, and plan for long-term sustainability. Ultimately, this program protects access to care, supports local economies, and strengthens the health and well-being of rural communities.