AHA urges CMS to prioritize hospitals, providers with Rural Health Transformation Program funding

The AHA Aug. 5 provided comments to the Centers for Medicare & Medicaid Services on the distribution of funding for the Rural Health Transformation Program. The program will fund $50 billion to rural providers from fiscal year 2026 to FY 2030. The AHA urged CMS to prioritize direct support for rural hospitals and providers, specifically by lifting a 15% funding cap it imposed on provider payments and a 20% cap imposed on infrastructure and capital improvement funding for years two through five of the program. The AHA also recommended CMS work with Congress to allow states to revise their initial applications and provide a longer timeline to spend obligated funds. Additionally, the AHA asked CMS to publicly post funding information reported by states and reiterated a previous request that CMS not enact administrative barriers to hinder hospitals’ ability to receive the funds. The AHA also requested CMS to ensure that RHTP funds received by hospitals are separately reported on the Medicare cost report.