CMS creates office to oversee rural health funding

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CMS has created an office focused on rural health transformation initiatives. 

The Office of Rural Health Transformation will oversee the $50 billion Rural Health Transformation Program, according to an announcement published in the Federal Register.

The program aims to improve access, care quality and infrastructure in rural communities. Unlike previous federal relief programs, this one does not provide direct payments to rural hospitals. Instead, states applied for and will manage the funds. All 50 states filed applications for a share of the $50 billion fund. 

The office will be responsible for developing grant application criteria, reviewing applications and awarding funds in coordination with CMS’ Office of Acquisition and Grants Management. 

The office will also serve as CMS’ lead point of contact for rural health transformation policy, operations and public inquiries, including from congressional offices and healthcare providers. It will advise CMS leadership on rural health policy and coordinate with states, healthcare providers, advocacy groups and other federal agencies on rural health initiatives.

A Division of State Rural Engagement will operate within the office. The division will work directly with states to implement approved rural health transformation plans, conduct readiness reviews and provide ongoing monitoring and oversight.

The revised organizational structure was approved by HHS Secretary Robert F. Kennedy Jr. Dec. 18 

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