Governor Hochul Announces $76 Million to Strengthen Rural Healthcare Across New York State

Rural Community Health Integration Initiative Provides 90 Awards to 56 Organizations To Expand Access to Coordinated Care

Historic Investment Will Support Partnerships Among Rural Hospitals, Community Health Centers and Other Providers Across New York

Funding Is Part of New York’s More Than $212 Million First-Year Rural Health Transformation Program Award

Governor Kathy Hochul today announced more than $76 million in funding through the Rural Community Health Integration Initiative to support 90 awards to 56 organizations across New York State.  The investment is part of the more than $212 million New York State received for the first year of the federal Rural Health Transformation Program and reflects Governor Hochul’s commitment to ensuring that every New Yorker has access to affordable, high-quality healthcare, no matter where they live.  The awards will strengthen regional partnerships, improve coordination of care, and expand access to health and social services for rural New Yorkers.

“Every New Yorker deserves access to high-quality healthcare, no matter where they live,” Governor Hochul said.  “These investments will bring rural hospitals, health centers and community providers together to strengthen regional health care networks and make it easier for New Yorkers to get the care they need closer to home.  By investing in partnerships, infrastructure and the healthcare workforce, we are building a stronger, more sustainable rural health care system that will serve New Yorkers for generations to come.”

The Rural Community Health Integration Initiative supports partnerships among hospitals, Federally Qualified Health Centers, behavioral health providers, and other community-based organizations.  Funding may be used for planning and implementation activities that improve care coordination, strengthen regional healthcare networks, and help patients more easily access services across the continuum of care.

New York State Health Commissioner Dr. James McDonald said, “Where someone lives should not determine whether they can access high-quality healthcare.  These investments will help rural hospitals, health centers and community providers build stronger partnerships, coordinate care and better address the health and social needs of the people they serve.  By strengthening the infrastructure and workforce that support rural healthcare, we can improve health outcomes today while creating sustainable improvements that will benefit rural communities for generations.”

The Rural Health Transformation Program is a $50 billion federal initiative administered by the Centers for Medicare and Medicaid Services and running from federal fiscal year 2026 through 2030.  The program is designed to improve healthcare access, quality, and outcomes in rural communities through strategic investments in regional partnerships, health care infrastructure, technology, and workforce development.  New York received more than $212 million for the first year of the program.  Funding supports four major initiatives, as well as management consulting support, staffing, and travel needed to implement and administer the program.  The four initiatives include:

• Rural Community Health Integration Initiative — $77.2 million: Supports coordinated rural health partnerships that improve care coordination, expand access to health and social services, and help rural hospitals and community providers build or grow integrated health networks.  The initiative includes $76.2 million for the 90 awards announced today and $1 million to increase the number of School-Based Health Centers.
• Strengthening Rural Communities with Technology-Enhanced Primary Care — $30 million: Improves rural patients’ access to and utilization of high-quality primary care by expanding the number of Patient-Centered Medical Home-recognized providers and providing resources to help primary care practices use advanced analytics and technology to improve operational efficiency, quality, and financial sustainability.
• Rural Roots, Building a Sustainable Rural Healthcare Workforce — $13 million: Supports a comprehensive strategy to address rural healthcare workforce needs by recruiting and training more practitioners for rural communities.  Investments will help identify local specialty gaps, expand early career exposure for students, enhance clinical rotations, strengthen employer-based training programs, and expand EMS education through new remote-supported training technologies.
• Investments in Technology Innovation and Cybersecurity Resilience — $79.5 million: Strengthens cybersecurity and expands the use of innovative technologies in rural healthcare facilities by supporting cybersecurity improvements, increasing access to care through telehealth, improving patient outcomes through eConsult partnerships, and connecting health care facilities and practices with the Statewide Health Information Network for New York health information exchange.

The $76.2 million announced today through the Rural Community Health Integration Initiative includes approximately $22.7 million for planning awards and $53.5 million for implementation awards.  An additional $1 million through the initiative will support efforts to increase the number of School-Based Health Centers.  Through the Rural Community Health Integration Initiative, New York is investing in regional networks that will:

• Improve coordination among rural hospitals, primary care providers, behavioral health providers, and other community organizations;
• Expand access to comprehensive healthcare and social services;
• Strengthen transitions and connections across the continuum of care;
• Support collaborative models that improve health outcomes and advance health equity; and
• Increase the long-term sustainability of rural healthcare providers and the communities they serve.

U.S. Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said, “The Trump Administration’s Rural Health Transformation Program is helping states like New York develop innovative, locally driven solutions to improve rural Americans’ access to high-quality care.  These grant awards demonstrate how this historic investment is empowering rural communities to strengthen their health systems, put patients first, and bring better care closer to home.”

Participation in the Rural Health Transformation Program and successful implementation of the State’s first-year investments will support New York’s ability to pursue additional federal funding in future years of the five-year program.  This project is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling more than $212 million, with 100 percent funded by CMS/HHS.  The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.  Learn more about how New York State is transforming rural healthcare here.