Yellowhammer Times

Alabama Governor Kay Ivey announced that the state has submitted its plan for the federal Rural Health Transformation Program (RHTP) to the Centers for Medicare & Medicaid Services. The RHTP is part of the One Big Beautiful Bill Act, which was signed into law in July with support from President Trump and Congress. The program aims to invest $50 billion over several years to help states improve healthcare access, quality, and outcomes in rural communities by transforming healthcare delivery systems.

Governor Ivey emphasized the importance of rural health care in Alabama, stating, “As someone from Wilcox County, making meaningful improvements in how we deliver health care in rural Alabama is critically important to me. Thanks to President Trump’s One Big Beautiful Bill, states have an opportunity to make transformational change that will benefit citizens and communities for generations,” said Governor Ivey. “Making America Healthy Again begins in rural America, and I look forward to the state and federal governments working together to improve health care across the state.”

The Alabama Rural Health Transformation Program (ARHTP) includes 11 initiatives designed to address different aspects of rural healthcare:

- Collaborative Electronic Health Record (EHR), IT and Cybersecurity Initiative

- Rural Health Initiative

- Maternal and Fetal Health Initiative

- Rural Workforce Initiative

- Cancer Digital Regionalization Initiative

- Simulation Training Initiative

- Statewide EMS Trauma and Stroke Initiative

- EMS Treat-In-Place Initiative

- Mental Health Initiative

- Community Medicine Initiative

- Rural Health Practice Initiative

These initiatives aim to make rural healthcare facilities more financially stable, expand access to critical services, and improve patient outcomes. The program plans to encourage shared services among providers, increase the rural healthcare workforce through recruitment efforts, expand telehealth options, and create efficiencies within the system.

Development of the ARHTP involved collaboration between several state agencies including the Governor’s Office, Alabama Department of Economic and Community Affairs (ADECA), Department of Finance, Medicaid Agency, and State Health Planning and Development Agency. A 20-person workgroup made up of healthcare experts and lawmakers also contributed input.

“My team left no stone unturned as it gathered information to submit our plan,” Governor Ivey continued. “It is a thoughtful, strategic plan that must be coupled with state policy changes to maximize effectiveness. Once implemented, the initiatives and policy changes will make meaningful improvements to healthcare in rural Alabama. They will help fulfil President Trump’s goal to Make America Healthy Again, and I have no doubt they will help Alabamians become healthier.”

ADECA will administer the ARHTP after funding is awarded. The agency will set rules for participation so that eligible providers can apply for support under each initiative.

Funding decisions from CMS are expected by year-end.