Sen. Susan Collins (R) announced Friday that she was able to preserve $190 million in federal funding for Maine’s rural hospitals after the state missed key milestones and failed to provide adequate information to the Centers for Medicare & Medicaid Services (CMS) on the award’s implementation.
In reaching out to CMS Administrator Dr. Mehmet Oz, Sen. Collins underscored how critical the funding is for Maine’s rural hospitals and health care providers and urged CMS to help bring the state into compliance, which has since occurred.
“Maine’s rural hospitals are under serious strain, with maternity wards and emergency departments continuing to close in rural communities across the state,” said Collins in a statement Friday. “That is why I advocated for the establishment of this fund last summer to make the largest federal investment in rural health care in more than 20 years.”
“When I was informed that the State of Maine’s funding was at risk, I made clear in conversations with CMS Administrator Oz just how critical these resources are to rural Mainers whose future access to care close to home is at stake,” she said.
“I am very pleased that, as a result of these discussions, CMS has informed me that the state’s funding is now back on track,” said Collins. “This historic $190 million investment comes at a critical time for rural health care.”
This block of funding came as part of a $50 billion Rural Health Transformation Program (RHTP) initiative first proposed by Collins during negotiations over amendments to the One Big Beautiful Bill Act (OBBBA).
Nationwide, $10 billion worth of funding is expected to be distributed annually by CMS over the next five years.
Maine’s funding application, submitted with the support of the state’s entire congressional delegation, focused on five core priorities:
- Empowering rural Mainers to achieve their own healthy living goals;
- Strengthening the rural health workforce;
- Adopting health-enabling technologies such as telehealth and electronic medical records;
- Reducing financial and transportation-related barriers to care; and
- Sustaining the long-term viability of Maine’s rural health care system
