BISMARCK, N.D. – North Dakota received the largest dollar increase in Rural Health Transformation Program (RHTP) funding from Year 1 to Year 2 of any state in the nation, securing more than $206 million from the Centers for Medicare & Medicaid Services (CMS) to support North Dakota Health and Human Services' (HHS) efforts to strengthen rural healthcare.
CMS announced North Dakota's Year 2 award of $206,379,627, an increase of $7.44 million, or 3.74%, over its nearly $199 million Year 1 award. North Dakota received the largest dollar increase of any state in the nation, bringing its total funding awarded through the five-year program to approximately $405.3 million.
The increase comes as HHS builds on its first year of progress, including obligating 100% of its Year 1 funding and making strategic changes to strengthen program administration and implementation. The additional funding reinforces the state's confidence in its approach as it moves into the next phase of rural health transformation.
“The Trump Administration’s $50 billion Rural Health Transformation Program gives states the resources and flexibility to bring care closer to home and build stronger, more sustainable health care systems for their rural communities,” said CMS Administrator Dr. Mehmet Oz. “As the program enters its second year, this next round of funding will help North Dakota build on the progress made in Year 1 and continue working toward lasting improvements in access, quality, and health outcomes for rural communities.”
“North Dakota has taken a thoughtful, strategic approach to making the most of this historic investment in rural healthcare,” said Gov. Kelly Armstrong. “We've listened, learned and strengthened how the program operates. Receiving the largest funding increase in the nation reinforces our confidence that we're moving in the right direction, and we're committed to turning these resources into lasting improvements for rural communities.”
Building on Year 1 progress
During its first year, North Dakota laid the groundwork for investments designed to address some of the most pressing challenges facing rural healthcare, including workforce shortages, access to care, healthcare infrastructure and technology and community health.
HHS obligated all of its nearly $199 million in Year 1 funding, supporting initiatives that will help rural healthcare providers and communities put locally driven solutions into action.
Year 1 investments support a range of initiatives, from expanding healthcare workforce training and recruitment to improving access to care in rural communities. Funding also supports improvements to healthcare facilities and technology, stronger connections between providers and community-based services, and programs that promote healthier lifestyles and prevent chronic disease.
The state also introduced an anchor partner model to strengthen program administration and accelerate implementation. Through this structure, designated partners bring specialized expertise, established relationships and additional capacity to help manage groups of initiatives and awards, while HHS maintains program oversight.
“We accomplished a lot in our first year, and we're building on that momentum to bring even more expertise and resources to the table,” said HHS Commissioner Conner Swanson. “Receiving the largest funding increase of any state in the nation is a strong sign we're headed in the right direction. Now we're focused on putting those investments to work and making a real difference for North Dakotans.”
Looking ahead to Year 2
The Year 2 award is part of a $10 billion federal investment announced by CMS for all 50 states. While the total funding available nationwide remained essentially unchanged from Year 1, 25 states received funding increases and 25 received decreases. Annual funding decisions consider several factors, including states' progress implementing their approved Rural Health Transformation Program plans.
With additional funding secured, North Dakota will continue advancing initiatives that strengthen the rural healthcare workforce, bring quality care closer to home, expand technology and infrastructure and promote healthier communities.
HHS will share additional information about Year 2 initiatives and funding opportunities as plans are finalized.
Learn more about the Rural Health Transformation Program at hhs.nd.gov/rural-health-transformation.
The Rural Health Transformation Program is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services as part of a financial assistance award totaling $405,316,596.31, with 100% funded by CMS. The contents are those of North Dakota Health and Human Services and do not necessarily represent the official views of, nor an endorsement by, CMS, the U.S. Department of Health and Human Services or the U.S. government.