03-02-2026IMPACT COUNCIL

Rural health’s $50 billion tech transformation: Too fast to last

Rural health’s $50 billion tech transformation: Too fast to last

[Photo: Getty Images]

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The Centers for Medicare & Medicaid Services (CMS) just placed a $50 billion bet on rural healthcare, but the odds are not in its favor. CMS, now led by Mehmet Oz, MD, created the Rural Health Transformation Program to help the 60 million Americans in rural areas have better access to care, modernize facilities and technologies, and support innovation that brings “high-quality, dependable care closer to home.”

But CMS only gave states a few months to create and submit their transformation plans to secure a piece of the pie. Early rollouts are underway, and many states are in over their heads. There is a real danger that technologies are about to be deployed that ignore the stark realities of rural communities, and money will likely be wasted. Quick actions without a thorough understanding could put communities in unintended situations when funds run out. Will the urgency meant to accelerate transformation be its doom?

The transformation fund was a late-stage deal in 2025’s “One Big Beautiful Bill” to blunt criticism over immense Medicaid cuts that are straining rural healthcare; yet the fund only amounts to 37% of an offset in those areas, making it one big beautiful stopgap.

RURAL HEALTHCARE ALWAYS AT RISK

A larger proportion of people in rural areas are on Medicaid, compared to urban areas. These cuts are costing rural healthcare communities hundreds of........

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