Missouri could soon receive hundreds of millions each year if federal health officials approve its application to the new Rural Health Transformation Program.
State leaders applied Wednesday for the $50 billion federal grant initiative, which Congress included in the spending package known as "One Big Beautiful Bill."
Lawmakers created the fund after health providers in rural areas said other cuts in the spending bill could devastate some already struggling rural health systems.
"Missouri's submission is a bold, collaborative effort designed to increase access, improve quality and incentivize long-term sustainability to create a healthcare ecosystem that will support our rural communities for generations to come," Missouri Gov. Mike Kehoe said in a letter to Centers for Medicare and Medicaid Services Administrator Mehmet Oz.
If approved, the program could send $200 million to $250 million to the state annually over the program's five-year span, according to estimates from the Missouri Department of Social Services. Agency Director Jessica Bax would administer the funds.
"We look forward to continuing our work to support Missourians with this historic funding opportunity that will change the landscape of healthcare access and outcomes for rural Missourians," Bax said in a news release.
Missouri wants to use the money to improve access to health providers — including specialists and maternity health providers — and to build long-term, sustainable ways for rural residents to access health care through telehealth and other technology.
The plan includes creating "community hubs" for local care that would be situated around larger regional centers, and connecting smaller communities with larger networks through shared care plans and health data. It also includes training to support more health workers in rural areas.
Kehoe supports MAHA initiatives
Kehoe's letter accompanying the application also committed to several initiatives championed by Health and Human Services Secretary Robert F. Kennedy Jr. as part of his "Make America Healthy Again" effort.
The governor referenced his recent announcement that the state would prohibit the use of federal food benefits for candy, prepared desserts and soda. He also said the state planned to require doctors to complete annual nutrition training. And he said Missouri would be committed to reestablishing the Presidential Fitness Test in state schools.
State officials are also hoping to file legislation that would expand the scope of practice for nurse practitioners, dental hygienists and physician assistants.
"This re-evaluation will identify reforms to increase the availability of services provided by these professionals in rural areas," Kehoe said.
Advocates for rural health providers and patients were critical of the "Big Beautiful Bill" and its changes to the Medicaid program, which some estimates show could result in millions losing coverage nationwide.
That could mean losses for hospitals and clinics in rural areas with high concentrations of Medicaid recipients, advocates said.
Leaders from the National Rural Health Association have said the Rural Health Transformation Fund "falls short."
"This fund will not fully offset the billions in projected losses from Medicaid cuts," they wrote in a policy brief in July.
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