The Rural Health Transformation Program was designed to help rural hospitals weather Medicaid cuts included in the GOP's package and support longer-term cybersecurity and infrastructure improvements hospitals need to stay afloat; however, fund critics say the program is a short-term solution for a long-term problem.
States that receive RHTP grants must use the funds for at least three purposes outlined by the Centers for Medicare & Medicaid Services (CMS), including "promoting care interventions, paying for health care services and expanding the workforce," Mathur-Ashton explains.
As rural hospitals receive funds, they will need to apply them carefully. Alan Morgan, chief executive officer of the National Rural Health Association, "praised the fund as a 'fabulous program that hopefully, if done correctly, can transform rural health going ahead, to a sustainable model,'" Mathur-Ashton writes.
Some Democrats consider the $50 billion to be a slush fund with unclear guidelines that can't undo the harm planned cuts will cause. "The bill gives [CMS] the authority to determine which applications to approve and deny, but does not spell out the criteria it should be using to do so," Mathur-Ashton reports.
Rural health advocates say they want states to apply for RHTP, but many are pushing to have the $150 billion in Medicaid cuts rescinded. Morgan told U.S. News, "Congress either later this year or next year, is going to have to repeal those cuts for rural hospitals, or you're just going to see hundreds of rural hospitals close. It's non-workable.”
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