The National Impact: How the Rural Health Transformation Program Could Reshape Care for the Next Decade
The Rural Health Transformation (RHT) Program is more than just another federal grant cycle. It’s a five-year, $50 billion experiment in rethinking rural care delivery — and its success or failure will ripple far beyond state borders.
With applications due November 5, 2025, and CMS approvals required by December 31, the program is moving fast. But the long-term effects will unfold slowly, reshaping communities, providers, and the national healthcare landscape well into the 2030s.
Stabilizing Rural Hospitals and Clinics
In the past decade, more than 150 rural hospitals have closed across the U.S., and hundreds more remain financially vulnerable. The RHT Program could:
Provide immediate stabilization funds to prevent further closures
Incentivize new care models (freestanding emergency centers, hybrid hospitals, regional partnerships)
Strengthen safety-net providers like critical access hospitals and FQHCs
Impact forecast: Fewer closures, stronger regional hubs, and better alignment with local needs.
Building a Sustainable Rural Workforce
The direct care workforce shortage is at the heart of rural fragility. Many communities face limited access not just to doctors, but to nurses, aides, and caregivers. RHT funding opens the door to:
Training and retention pipelines for local residents
Incentives for providers to practice in underserved areas
Support for community health workers, caregivers, and paraprofessionals
Impact forecast: More stable staffing, reduced turnover, and career pathways that anchor workers in their own communities.
Accelerating Telehealth and Technology Adoption
The pandemic proved telehealth’s potential, but rural adoption has been uneven. RHT can accelerate:
Broadband infrastructure in underserved counties
Remote monitoring for chronic disease management
Telepsychiatry and behavioral health expansion
Technology supports for long-term care and aging services
Impact forecast: Expanded access to specialty care, reduced travel burdens, and improved chronic condition management in rural areas.
Advancing Health Equity
Equity is central to CMS’s vision. Rural transformation plans must address the unique challenges of:
Tribal communities
Migrant and agricultural workers
Aging populations with complex needs
Residents of frontier and geographically isolated counties
Impact forecast: Narrowing disparities in outcomes and access, ensuring that rural transformation doesn’t just stabilize systems, but truly expands opportunity.
A Test for National Policy
Perhaps most importantly, the RHT Program is a test case for how federal and state governments can partner on large-scale transformation. If it succeeds, it could set the stage for future federal investments in:
Long-term services and supports
Workforce stabilization across the continuum of care
Integrated models that blur the line between health and social supports
Impact forecast: A blueprint for how the U.S. addresses health system fragility in rural, aging, and underserved communities nationwide.
The Bottom Line
The RHT Program is not just a lifeline for rural healthcare — it’s a roadmap for the future of American health policy. If states seize this moment, they can not only transform rural care delivery but also shape national strategies for stability, equity, and resilience.
The opportunity is massive. The risks of inaction are equally clear. The next decade of rural health — and perhaps U.S. healthcare at large — will be defined by what happens in the next three months.
Call to Action
For providers, policymakers, and partners:
Push your state to act — silence now could mean missed funding for years to come.
Elevate the rural voice — ensure your community’s needs are reflected in applications.
Invest in partnerships — the most competitive applications will show coalition strength across health, long-term care, and community-based services.
The RHT Program is a once-in-a-generation chance to put rural communities on stronger footing. Let’s not waste it.
