Sen. Susan Collins (R) led a small group of lawmakers in urging Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz to make the adjustments necessary to support the successful implementation of the Rural Health Transformation Program (RHTP).
According to the senators, current guidance from the agency may “unintentionally disadvantage” many rural hospitals and clinics, the intended targets of this legislation.
Authorized as part of the One Big Beautiful Bill Act (OBBA), RHTP will distribute $50 billion in funding to states nationwide over the course of five years.
Money awarded through this program may be used for a variety of purposes, including the procurement of improved technology, as well as workforce recruitment and training.
States that receive funding must put it towards three or more of the approved uses as enumerated by CMS on the program’s official webpage.
RHTP represents the largest investment in rural health care in more than twenty years, as noted by Sen. Collins in her Thursday press release.
Collins advocated for the multi-billion dollar package as well as amendments to ensure that a broader range of rural providers would be eligible for support, despite ultimately voting against the final version of OBBA.
During the first year of the program, Maine is set to receive $190 million in funding.
Although this money was in jeopardy earlier this year due to the state missing key milestones and failing to provide CMS with adequate information, Collins intervened to ensure that Maine would not lose its award.
Since then, CMS has worked with the state to bring it into compliance with the program so that it may receive it’s multi-million award as planned.
[RELATED: Susan Collins Preserves $190M in Federal Funding for Maine’s Rural Hospitals]
This latest letter authored by Collins and her colleagues advocating for CMS to take steps to support RHTP’s implementation has been endorsed by the National Association of Rural Health Clinics, the National Rural Health Association, and the Federation of American Hospitals.
Signing onto the letter alongside Collins were three Democratic senators, Sen. Michael Bennet (D-CO), Sen. Alex Padilla (D-CA), and Sen. John Hickenlooper (D-CO).
“In rural communities across the country, hospitals and clinics serve as the backbone of local health care systems delivering emergency care, supporting maternal health, treating chronic illness, and standing ready to respond when lives are on the line,” the Senators wrote.
“At a time when many rural hospitals continue to face workforce shortages, rising operational costs, declining reimbursement, and persistent financial instability,” they said, “it is essential that implementation of the RHTP reflects the realities facing rural providers on the ground.”
“We believe that implementation can be improved further by lifting the cap on infrastructure and capital improvements for rural facilities, as many need significant improvement and equipment upgrades,” they continued.“We also believe that clarifying the permissibility of direct payments to providers is crucial.”
“Rural Americans deserve reliable access to high-quality care close to home,” the senators wrote. “Our recommendations aim to strengthen the hospitals and providers that communities rely upon in moments of crisis and every day in between.”
“Low reimbursement rates from public payers paired with low volumes are a major contributor to rural hospital financial instability. RHTP provides a unique opportunity to address these long-standing challenges and set rural hospitals up for success on their road to transformation,” the Senators concluded.
