New Hampshire gets $204M for rural health expansion

(The Center Square) — New Hampshire has received another $204 million from the federal government to develop its new rural health care program, Gov. Kelly Ayotte said Tuesday.

The Centers for Medicare & Medicaid Services announced this week that it is distributing an additional $10 billion in funding to states in the latest round of disbursements from the Rural Health Transformation Program. New Hampshire is getting more than $204 million, the federal agency said, bringing its total funding to more than $408 million. 

Ayotte called the latest award — the largest award among New England states — "a testament to the incredible work" the state and health care advocates have done "to put our first year of funding into action as quickly as possible and the partnerships we have built with our providers, community health and mental health centers, and our community colleges and universities." 

"We’re ready to continue New Hampshire’s bold effort to expand access to high-quality, innovative, and affordable care for every Granite Stater," Ayotte, a Republican, said Tuesday in a statement. 

The health initiative aims to expand medical infrastructure and care in rural communities, where so-called healthcare 'deserts' often leave residents with few options. 

Regionally, New York is getting $207 million in the latest round of distributions, while Massachusetts is getting $158 million, the federal agency said. Maine will get $190 million and Rhode Island $158 million.

President Donald Trump's One Big Beautiful Bill Act, which he signed in July, includes Medicaid funding cuts and policy changes that critics say could force rural hospitals to close or reduce care, which were already struggling to stay afloat amid razor-thin operating margins and other financial stress.

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Lawmakers created a $50 billion safety-net fund for rural hospitals in response to concerns by top Republicans and Democrats about the potential impact of the new law on rural communities. 

The funds will be distributed by the Centers for Medicare and Medicaid Services over five years, with $10 billion available annually. 

The Trump administration launched the Rural Health Transformation Program in September, calling it an "unprecedented" effort to "transform" rural health care nationwide. 

In the first round of funding, states received awards ranging from $147 million to $281 million, according to CMS, including $204 million for New Hampshire. 

Rural hospitals, which are heavily reliant on Medicaid, are operating on negative margins, recent studies have shown. Hundreds are at risk of closure.

CMS Administrator Dr. Mehmet Oz said rural Americans have life expectancies three years shorter than their urban peers and said the Rural Health Transformation Program "is funding the historic investments necessary to close that gap." 

"States have already put these resources to work bringing better care closer to home for their rural communities, and CMS looks forward to helping them build on that progress in the coming year," he said in a Monday statement announcing the latest round of funding.