CMS establishes office to manage Rural Health Transformation Program

The Centers for Medicare & Medicaid Services (CMS) has formed a new office to manage its rural health transformation initiatives.

According to a notice posted Friday to the Federal Register, the agency has created the Office of Rural Health Transformation, which will direct the $50 billion Rural Health Transformation Program. This effort was established under the One Big Beautiful Bill Act earlier this year, with funds distributed to states to support rural health.

All 50 states have applied for a piece of the fund, which will be allocated across the next five years in $10 billion increments. The CMS intends to split half of that money evenly and then the rest based on the state applications, weighing how well their pitches will meet key program goals.

Per the notice, the office will be tasked with oversight of the program as well as developing and refining application guidelines. It will work closely with the Office of Acquisition and Grants Management to distribute the funds on schedule.

The office will also partner with multiple stakeholders, including states, providers and advocacy groups, to guide program initiatives that support access to care in rural America.

Within the office, the Division of State Rural Engagement will collaborate directly with state officials to manage applications and guide the process, according to the notice. It will also oversee how states are implementing the programs the grants are meant to support and track progress compared to the applications.

The CMS intends to inform program awardees by Dec. 31.