Governor Mills Welcomes Maine’s Rural Health Transformation Program Award for Year Two

Maine will utilize more than $190 million to build on first-year investments that bring care closer to home

Augusta, MAINE - Governor Janet Mills welcomed an announcement by the U.S. Centers for Medicare and Medicaid Services that it will award Maine more than $190 million to strengthen rural health care during the second year of the Rural Health Transformation Program (RHTP).

During the program's first year, Maine put all of its Rural Health Transformation Program funding to work through investments in health care workforce training, electronic medical record modernization, and rural hospital efficiency.

In year two, Maine will receive $190,358,993.11 - a $350,000 increase over last year's award. Maine will utilize that funding to expand community-based services and accelerate regional planning.

"Maine people should have access to high-quality healthcare, no matter their zip code. Our state is utilizing funds from the Rural Health Transformation Program to build a system that will improve rural healthcare delivery and serve our state's future needs," said Governor Janet Mills. "I again thank Senators Collins and King and Representatives Golden and Pingree for their support of Maine's successful application, as well as the many health providers and partners working to improve our health system and the lives of Maine people."

"Where you live in Maine shouldn't determine whether you can access the care you need," said Maine DHHS Commissioner Sara Gagné-Holmes. "Our goal is to bring care and more of it closer to home. Starting regional planning earlier will give local partners more time to identify the services their communities need most and plan for how to sustain it beyond the grant."

Priorities for the program's second year include expanding community-based services, continuing health care recruitment and training efforts, modernizing technology, and accelerating regional planning. Proposed additions would support Tribal traditional healing services and expand electronic medical record investments to eligible county jails to improve continuity of care as people return to their communities.

"Our next phase builds on the foundation established through our initial work with providers, communities, and partners across Maine," said Maine RHTP Director, Kristen McAuley. "Our focus is on helping people get the care they need, supporting the workforce that delivers it, and developing coordinated services that can be sustained beyond the program's funding."

The federal grant program is designed to improve health outcomes, expand access to care, and strengthen rural health systems. Maine's strong application for the program was supported by all four members of Maine's Congressional Delegation and leading organizations representing health care providers, public health, consumers, employers, higher education institutions, community health workers, tribal entities, emergency medical services, and health technology.

Maine RHTP's Year 2 priorities include:

• Improving health through community-based care. Maine plans to add school-based health centers in rural communities, support new mobile health units where needed, and continue integrating primary care into behavioral health clinics.
• Strengthening the rural health care workforce. Maine will continue helping rural employers recruit and retain health care workers and expand career exploration and training for students and current workers.
• Advancing technology and innovation. Maine plans to invest in telehealth and modernize electronic medical records, including in county jails ready to provide MaineCare-covered services before release.
• Reducing barriers to care. Maine will continue improving transportation coordination and helping residents navigate health coverage. A new proposal would help Tribal communities offer traditional healing services through MaineCare.
• Supporting sustainable rural health services. Maine will begin regional planning sooner than originally planned, bringing local partners together to identify essential services and guide future investments. Maine will also continue efforts to improve hospital efficiency and advance payment models that support coordinated care.

"Maine's hospitals continue to focus on the important work being done through the RHTP Program," said Maine Hospital Association President, Jeffrey Austin. "Expanding that work in Year 2, particularly in the areas of workforce and regional planning, will be vital to the future stability of rural healthcare in Maine."

"Year two of Maine's Rural Health Transformation Program is an opportunity to turn our shared vision for rural health care into meaningful, lasting improvements for the communities we serve," said Maine Primary Care Association Chief Executive Officer, Darcy Shargo. "Maine's Federally Qualified Health Centers, serving 1 in 6 Maine people, are essential to this effort. As trusted providers, health centers bring the reach, experience, and local connections needed to ensure these investments deliver sustainable improvements in care for rural Maine."

"Maine's continued investment in our rural health ecosystem through Year 2 of the Rural Health Transformation Program represents an important opportunity to build on the infrastructure and programs established in Year 1," said Alliance for Addiction and Mental Health Services' Maine Executive Director, Adam Bloom-Paicopolos. "These funds will help sustain momentum in expanding access to community-based mental health services and substance use disorder treatment like Certified Community Behavioral Health Clinics while strengthening our behavioral health workforce, particularly in our rural communities. We look forward to continuing this work with our state partners to ensure that these investments translate into meaningful, lasting improvements across our behavioral health system of care for Maine people and families."

The RHTP was created within the Federal budget reconciliation bill, H.R. 1, signed into law on July 4, 2025. Maine's Rural Health Transformation Program organizes investments in patients, providers, and communities around five initiatives: population health, workforce, technology and innovation, access, and sustainable rural health ecosystems. Together, these initiatives aim to improve care today while building a stronger rural health system for Maine's future. For more information, visit maine.gov/dhhs/ruralhealth.

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This program is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) through financial assistance awards totaling $380,367,044.20 across Years 1 and 2, with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.