



The Rural Health Transformation Program was billed as a cushion for rural hospitals absorbing Medicaid cuts under H.R. 1, but hospital administrators say the cushion has yet to arrive. CMS distributed roughly $200 million per state on average last December, but the funds went to states, not directly to hospitals, and states are still writing contracts and requests for proposal.
Kevin Stansbury, CEO of a hospital in Hugo, Colorado, says his facility could lose $1.5 million in revenue once the cuts fully take effect, in a town of 800 people serving an area the size of Connecticut. The National Rural Health Association's CEO concedes it's too early to see results but expects examples within 30 to 60 days.
Meanwhile Chartis, a healthcare consulting firm, estimates the program won't offset the nearly $140 billion in expected Medicaid-related losses. Rural hospitals, including Stansbury's, are already cutting services like OB/GYN care while they wait to see whether the promised transformation shows up.
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