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Outlook 2026: Rural Health Transformation Program

As we kick off the new year,聽量子资源网聽(量子资源网)聽is launching a new series of brief,聽insightful聽interviews聽with our policy experts聽on issues聽that will define聽2026鈥攚hat鈥檚 changing, why it matters, and how federal, state, and industry decisions will shape what happens next.聽Building on聽our earlier analysis of聽the Rural Health Transformation Program聽((RHTP),聽here听补苍诲听here), this week, we聽start聽with a聽pointed聽look at聽the Centers for Medicare & Medicaid聽Services鈥檚聽(CMS)聽first year of RHTP awards.聽

Rural Health, Ready or Not: CMS Wants Results in 2026

An interview with Kathleen Nolan, Senior Advisor, 量子资源网, and , Principal, Leavitt Partners, an 量子资源网 Company. 

Q: What do the new Rural Health Transformation Program awards tell us about US Department of Health and Human Services (HHS) and CMS priorities heading into 2026? 

Kathleen Nolan: One of the clearest signals is that CMS expects visible progress in 2026. This is not a program that gives states months of planning runway. The application made it clear that CMS wants states to start doing the activities they proposed right away鈥攏ot just planning or propping up existing systems. CMS wants to see meaningful movement on implementation in 2026, especially in the areas of workforce, infrastructure, technology modernization, and care delivery redesign. 

Sara Singleton: Exactly, and CMS is using this investment to reinforce some of the administration鈥檚 broader policy goals. Many state proposals leaned heavily into chronic disease prevention, chronic care management, and expanding supports that promote healthier lifestyles. That alignment isn鈥檛 accidental. The Administration is looking for real traction on these priorities, and RHTP gives states both the resources and the accountability framework to make progress. So, the message from CMS is clear: Move quickly, implement strategically, and show early gains in the areas that matter for long-term population health. 

Q: Was anything in the awards themselves surprising? 

Singleton: There was a lot of speculation about how wide the spread in funding levels might be, particularly for states鈥 discretionary initiatives. But the distribution was relatively tight; 32 states fell in the 鈥渁verage鈥 range of $190鈥$230 million, with only four states above $230 million and 13 below $190 million. That suggests CMS isn鈥檛 signaling dramatic differences in expected performance or ambition. 

Nolan: It reinforces that CMS is looking for consistent, measurable progress from every state. States that struggle to implement their plans could see less funding in about years. 

Q: What should states keep top of mind heading into year one? 

Nolan: Accountability. CMS has made it clear they will adjust budgets in later years if states don鈥檛 meet expectations on reporting and evaluation. That also means states need to know where the dollars are going and what they are getting for the investment. Year one performance really matters. 

Singleton: And it鈥檚 not just CMS. Congress and the Office of Inspector General for HHS will also be watching how states use these funds. 

Q: What rural health policy developments are you watching in early 2026? 

Nolan: Decisions about the leadership for these initiatives and state legislatures. Federal investment can only go so far. States will need strong leaders and supportive policies to accelerate and sustain RHTP efforts in year one. What legislatures choose to prioritize will shape the impact of RHTP far beyond year one. 

Meet the featured experts

Headshot of Kathleen Nolan

Kathleen Nolan

Senior Advisor
Portland, OR
Headshot of Sara Singleton

Sara Singleton

Principal
Washington, DC
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