LUGPA Policy Brief: CMS Rural Health Transformation Program

October 2025

On September 15, 2025, the Centers for Medicare & Medicaid Services (CMS) announced the Rural Health Transformation Program (RHTP), a $50 billion initiative created under the Working Families Tax Cuts Act to strengthen healthcare infrastructure in rural America. The program aims to empower states to develop innovative, state-driven solutions that expand access, enhance quality, and improve health outcomes in underserved communities.

All states are eligible to apply for and receive funding from RHTP. States must submit a detailed application, which CMS will review for approval. Eligible states will then use the allocated funds to create and implement their own transformation plans to address specific rural health challenges within their borders.

Program Details

The program provides $50 billion over five years beginning in FY 2026, with $10 billion available annually. Funding distribution:

• 50% evenly allocated to states with approved applications.
• 50% awarded based on state performance metrics and the projected impact of proposed initiatives.

Applications are due November 5, 2025, with awards announced by December 31, 2025. CMS will partner with states to support the implementation and oversight of these initiatives.

CMS outlined five objectives for the program:

1. Health Promotion – Expand preventive care and address root causes of disease through new access points and innovations.
2. Sustainable Access – Support provider efficiency and financial stability to ensure long-term access to care.
3. Workforce Development – Recruit and retain health care professionals in rural areas.
4. Innovative Care Models – Improve outcomes and care coordination through new delivery approaches.
5. Technology & Security – Increase use of digital tools to enhance care delivery, telehealth, and data security.

Implications for LUGPA Members

Independent urology practices in rural areas may benefit from program funding for:

• Infrastructure improvements (e.g., new facilities, equipment upgrades).
• Workforce recruitment and retention efforts.
• Technology investments, including telehealth platforms and cybersecurity upgrades.

Participation in state-driven initiatives could allow practices to expand care delivery and align with broader rural health goals.

LUGPA encourages members to:

• Engage with state health officials to ensure urology-specific needs are included in state applications.
• Advocate for inclusion in innovative care models that address specialty care access in rural areas.
• Leverage technology and telehealth to expand reach and improve outcomes.

By proactively engaging, independent urology practices can play a pivotal role in shaping the future of rural healthcare delivery.