State seeks public input on use of rural hospital funds

(The Center Square) —  New Hampshire Gov. Kelly Ayotte is chasing after a slice of federal funding from a $50 billion hospital fund set up as part of President Donald Trump’s tax and policy bill to help offset the impact of looming Medicaid cuts on rural health care systems.

The Centers for Medicare & Medicaid Services launched its Rural Health Transformation Program earlier this month, inviting states to apply for funding to "reimagine care delivery and develop innovative, enduring, state-driven solutions to tackle the root causes of poor health outcomes specific to rural America."

New Hampshire is among the states seeking a slice of the funding, and Ayotte is encouraging Granite Staters to voice their opinions about the plan and where the grant money should be devoted. 

"This grant is a critical opportunity to strengthen our state’s rural hospitals and health systems, expand access to care, and continue to grow our workforce of dedicated health professionals," the first-term Republican said in a statement Wednesday. "We’re doing this the New Hampshire way by meeting with providers and stakeholders to hear their feedback, and now, seeking input directly from Granite Staters." 

President Donald Trump's newly minted domestic policy bill could force closures and deep cuts in care at rural hospitals, which were already struggling to stay afloat amid razor-thin operating margins and other financial stress, according to lawmakers, hospital groups and health care experts.

The legislation, called the One Big Beautiful Bill Act, extends Trump’s 2017 tax cuts and implements his agenda to improve border security, cut taxes and slash government spending. But the new law calls for deep cuts funding for Medicaid programs, which are jointly funded by the federal government and states.

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

But Trump’s bill included a $50 billion safety-net fund for rural hospitals. Those funds will be distributed by the Centers for Medicare and Medicaid Services over five years, with $10 billion available annually. 

The federal agency launched the Rural Health Transformation Program on Sept. 19, touting it as an "unprecedented" effort to "transform" rural healthcare across the country. 

“This program is a historic investment that will catalyze needed change in rural health systems and improve lives for generations to come," CMS Administrator Dr. Mehmet Oz, said in a recent statement. “For too long, when it comes to health care access and infrastructure, we've left behind the backbone of America. That stops now with this program that will spark real change for rural health care.”

New Hampshire's Department of Health and Human Services Commissioner Lori Weaver said any plan the state develops for spending money from the fund "will be shaped by the feedback we have received and continue to receive." 

"We look forward to the ideas of residents, healthcare providers, and community leaders on how we can better focus on prevention and keep primary care and behavioral health care local while growing and strengthening our rural healthcare workforce," she said in a statement.