AHA - American Hospital Association

06/23/2026 | News release | Distributed by Public on 06/23/2026 15:07

Bipartisan group of senators urges CMS to improve Rural Health Transformation Program implementation

A bipartisan group of senators June 18 urged the Centers for Medicare & Medicaid Services to improve implementation of the Rural Health Transformation Program. In a letter, led by Sens. Michael Bennet, D-Colo., co-chair of the Senate Rural Health Caucus, and Susan Collins, R-Maine, lawmakers expressed concerns that the current structure and guidance for implementing the RHTP could "unintentionally disadvantage" many rural hospitals the program was intended for.

"CMS's recent clarification that states may use provider payment funding for workforce recruitment and retention, infrastructure investments, technical assistance, systems development for alternative payment model participation, and support for non-clinical roles is a step in the right direction," the senators wrote. "These flexibilities recognize many of the practical challenges rural providers face and are important steps toward helping hospitals and clinics remain viable. We believe that implementation can be improved further by lifting the cap on infrastructure and capital improvements for rural facilities, as many need significant improvement and equipment upgrades. We also believe that clarifying the permissibility of direct payments to providers is crucial."

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