States receive notice of how much money they will receive from the $10 billion Rural Health Transformation Program

Texas was awarded $281 million and New Jersey 
$147 million by CMS. (Adobe Stock photo) 

The wait is finally over for rural health care officials and advocates across the U.S., who have been "hotly debating" how much of the newly formed $50 billion Rural Health Transformation Program their state will receive. The Centers for Medicare & Medicaid Services announced their awards last week.

The five-year program divides half of the $10 billion-per-year distribution equally among the states; however, the division of the remaining $25 billion was "determined by the CMS based on how well the states’ pitches met goals of strengthening rural health prevention, standing up sustainable access, developing a rural workforce and introducing innovative care delivery and technology," reports Dave Muoio of Fierce Healthcare. 

CMS paired its award listing with an abstract of each state's application. "Only a subset of states have so far opted to make their full applications available to the public," Muoio explains. The complete list of state funding awards is here.

All 50 states received awards from the second half of the funds, with Texas and Alaska garnering the largest awards, and New Jersey and Connecticut receiving the smallest funding amounts. Some factors involved in the selective division included each state's rural population and the number of residents living in frontier regions.

While rural hospitals and providers have voiced support for the program, many are cautious about how much the new funding can do to balance "the nearly $1 trillion of nationwide Medicaid cuts expected over the coming decade," Muoio adds.

Last month, CMS announced the formation of a new office to manage the Rural Transformation Program and its funds.