Hawaiʻi is set to receive a substantial boost to its rural healthcare infrastructure. The state has been awarded $188,892,440 from the federal Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation Program, as announced by Governor Josh Green. This funding is part of a larger, nationwide initiative, totaling $50 billion, designed to enhance healthcare access and quality in rural areas across the United States.
This investment offers significant opportunities for Hawaii's healthcare landscape. The CMS program aims to improve healthcare delivery, support providers, and advance new approaches to coordinating health services in rural communities. Funds can be used to improve technology, strengthen the healthcare workforce, and increase preventative care. Healthcare Association of Hawaiʻi President Hilton Raethel noted that the program’s funding structure, which doesn't allocate funds strictly on a per capita basis, provides a considerable advantage to Hawaiʻi, allowing the state to receive comparatively more funding than larger states like Texas or California Hawaiʻi Public Radio.
With the state's application approved, CMS will distribute funds over five years, beginning in federal fiscal year 2026 Becker's Hospital Review. States must submit yearly progress reports, and CMS will convene an annual rural health summit to share best practices. The state has already started planning how it will spend this money. The state is considering expanding existing programs, such as the healthcare worker student loan forgiveness initiative Hawaiʻi Public Radio. The state is also asking for public feedback on project needs. The funds cannot be used to help hospitals pay off debt or help with day-to-day operations Hawaiʻi Public Radio.
The CMS has outlined five strategic goals. These include promoting preventive care, improving provider efficiency, recruiting and retaining rural healthcare workers, developing value-based payment models, and improving access to technology Healthcare Dive. With this funding, the state has the opportunity to modernize its rural health infrastructure and expand primary and behavioral health services, which will benefit entrepreneurs and healthcare professionals alike.
