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CMS Opens $50B Rural Health Transformation Program

Wednesday, September 24, 2025   (0 Comments)

Member Alert: September 24, 2025

CMS Opens $50B Rural Health Transformation Program
What It Means for Air Medical Providers

Last week, CMS announced that states can now apply for the $50 billion Rural Health Transformation (RHT) Program, with the first submission deadline set for November 5, 2025.

Initially designed to offset Medicaid cuts, the program is now positioned as a long-term investment in rural health modernization. CMS will distribute $10 billion annually through FY 2030, and states must obligate funds each year or risk recapture.

To qualify, states must submit a Rural Health Transformation Plan and commit to at least three of ten eligible investment areas, including but not limited to:

  • Telehealth expansion
  • Behavioral health services
  • IT infrastructure upgrades
  • Workforce recruitment and retention
  • “Right-sizing” local health systems

Importantly, states must certify that RHT funds will not be used as Medicaid match, keeping the program separate from traditional Medicaid financing.

Why This Matters for Air Ambulance Providers
The RHT Program presents new opportunities for air medical providers to partner with state health departments. Key program elements align with the unique value air transport brings to rural care:

  • Access & Equity: Air ambulances often provide the only viable path to higher-acuity care for rural patients. Including air transport in state plans could demonstrate measurable improvements in access.
  • Digital Health Integration: Telehealth and IT upgrades may enable air providers to connect with statewide health information exchanges and emergency systems.
  • Workforce & System Design: As states rethink rural delivery models, air transport can ensure timely access for communities losing inpatient or specialty services.
  • Behavioral Health & Emergency Preparedness: Air medical teams can support crisis response and emergency transfers, especially in behavioral health and disaster scenarios.

Next Steps
The RHT Program is state-driven, with broad discretion left to governors and health departments. Opportunities will vary, so air medical providers should proactively engage with state officials to highlight how their services support program goals around access, modernization, and workforce sustainability.

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