Washington state proposes bipartisan plan for $1 billion Rural Health Transformation funding

OLYMPIA - Governor Bob Ferguson today announced Washington has submitted its application for the federal Rural Health Transformation Program, proposing a bipartisan plan to invest $1 billion ($200 million per year) across five years in rural health care.

The plan proposes a $1 billion investment, which includes support for hospital infrastructure, with an emphasis on technology improvements along with support for maternal health care and new facilities. Additionally, Governor Ferguson has committed 10% of any funding awarded to the state to support Indian health care providers, which serve both Native and non-Native patients in some of the most rural areas of our state.

"Rural Washington boasts strong communities, robust agriculture and some of the most beautiful landscapes in the world," Governor Ferguson said. "In order to sustain this way of life, we must support a strong rural health care system. Our bipartisan plan will help modernize and strengthen this crucial resource."

Washington's plan, led by the Washington State Health Care Authority (HCA), is supported by bipartisan legislative leaders.

"This effort reflects strong cross-agency collaboration and was informed by input from almost 300 stakeholders, along with valuable engagement from the Legislature and Tribes," Health Care Director Ryan Moran said. "We're looking forward to the opportunity this creates to advance health outcomes and strengthen care in rural Washington."

Governor Ferguson is working to schedule a meeting with the Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz. A previously scheduled meeting was canceled due to the federal government shutdown.

Washington's proposal is available on HCA's website.

Of Washington's 39 counties, 29 are considered rural. More than 1 million in Washington live in these rural counties.

In addition to the Governor's Office and HCA, multiple state agencies worked collaboratively on the plan, including the Department of Health and Department of Social and Health Services.

To prepare the plan, state agencies solicited feedback from partners, communities and stakeholders, reviewing and incorporating nearly 300 written comments. The state also conducted Tribal listening sessions and consultation, facilitating review sessions throughout the drafting process and collaborating with legislative partners.

CMS will approve or deny applications by Dec. 31, 2025.

The federal Rural Health Transformation Program offers $10 billion annually from 2026-2030. This program aims to support rural health system transformation, including but not limited to:

• Improving access to hospitals and other health care providers.
• Improving health care outcomes for rural residents.
• Strengthening strategic partnerships between rural hospitals and other health care providers.
• Prioritizing the use of new and emerging technologies, emphasizing prevention and chronic disease management and providing high-quality services.
• Increasing the number of clinicians through recruitment and training.
• Outlining strategies to manage long-term financial security and identifying specific causes that can lead to rural hospital closure, conversion or service reduction.