RHTP Funds to Help Rural Communities

North Carolina and Virginia will apply for federal Rural Health Transformation Program funds. The Rural Health Transformation Program (RHTP) is a federal initiative that provides $50 billion in funding to states over five years. The RHTP is designed to address challenges facing rural healthcare systems in light of recent cuts in Medicaid funding. The North Carolina Department of Health and Human Services is preparing its application to receive funds from RHTP. "Rural communities need access to health care to thrive," commented NC Governor Stein. "People in these communities won’t stop getting sick if their health care is gone – and towns will struggle to grow or attract businesses without a hospital. [RHTP] will help us mitigate those impacts, and we will do everything we can to put it to good use. Even so, it will not fully solve the problem we’re facing. We’ve got to come together as North Carolinians to support our Medicaid program."

Virginia Governor Glenn Youngkin issued an executive directive instructing state agencies to develop a plan to leverage RHTP funds. The Governor's directive instructed the Secretary of Health and Human Resources, Secretary of Finance, the Department of Medical Assistance Services, the Virginia Department of Health, other state and local government agencies, and representatives from major health care providers to develop a plan to leverage these funds.

As of this writing, there is no indication that South Carolina has applied for RHTP funding. The Center for Medicare and Medicaid is expected to approve state applications by December 31, 2025.