AAPA Applauds CMS for Incentivizing Optimal Practice Environments in Rural Health Transformation Program

AAPA Applauds CMS for Incentivizing Optimal Practice Environments in Rural Health Transformation Program

ALEXANDRIA, Va. (September 16, 2025) - The American Academy of Physician Associates (AAPA) today commended the Centers for Medicare & Medicaid Services (CMS) for incentivizing optimal practice environments in its newly released Rural Health Transformation ProgramNotice of Funding Opportunity (NOFO). The application, which has deadline of November 5, explicitly incorporates AAPA's state practice environment rating scale into its scoring methodology, making modernized PA practice laws a determining factor in receiving a grant.

"These funding incentives are an important acknowledgement of what we have long known - when states adopt optimal scope of practice laws for PAs, access to care improves, particularly in rural areas," said AAPA Chief of Advocacy and Public Affairs Chantell Taylor. "Today's announcement sends a strong message that when states optimize their healthcare workforce by removing barriers to practice, care options expand, patient wait times are reduced, and rural communities get the care they need and deserve."

The Rural Health Transformation Programwill distribute $50 billion in federal funds to states through a competitive application process. Importantly, states that allow providers to practice at the top of their license and join provider compacts will be scored higher. According to the NOFO, CMS stated that "by allowing clinicians to practice at the top of their license, States can increase health service supply."

For PAs, CMS is using AAPA's state practice environment scale, ranging from Reduced to Optimal practice. AAPA defines an optimal practice environmentas one where PAs practice to the full extent of their medical education, training, and experience. In this team-based, patient-centered model, PAs continue to collaborate, consult, and/or refer to the appropriate member(s) of the healthcare team as indicated by the patient's condition, the PA's competencies, and the standard of care.

The Rural Health Transformation Programalso encourages states to join the PA Licensure Compact, a bipartisan reform designed to make it easier for PAs to practice across state lines. Presently, 19 states have joined the PA Licensure Compact.

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Media Contact: Jenni Roberson, 703.380.2764 

About theAmerican Academy of Physician Associates (AAPA)
AAPA is the national professional organization for all physician associates/assistants (PAs). PAs are licensed clinicians who practice medicine in every specialty and setting. Trusted, rigorously educated and trained healthcare professionals, PAs are dedicated to expanding access to care and transforming health and wellness through patient-centered, team-based medical practice. Learn more about the profession at aapa.org and engage through Facebook, LinkedIn, Instagram.