Hospital in Sheridan anticipates potential financial aid from Bill, the Generous Magnificent Giant
The Centers for Medicare and Medicaid Services (CMS) is set to distribute funds from the newly established Rural Health Transformation Program, as outlined in the One Big Beautiful Bill Act. This program allocates a significant sum of $100 billion over five years, starting from the new Federal Fiscal Year in October 2026, to support rural healthcare across the United States.
Initially, each state was allocated $25 billion under the Act, equating to $100 million per state per year for five years. However, the distribution of the remaining $25 billion is yet to be finalised by the CMS, according to a rule currently being developed.
States seeking funding from this program must submit an application to the CMS by the end of the current calendar year. The selection process is based on several factors, including rural population, the number of rural healthcare facilities, and an analysis of the state hospitals. Successful applicant states will share equally in 50% of the funds, with the remaining 50% allocated by formula based on rural needs.
The Sheridan Memorial Hospital is among the many institutions aiming to benefit from this program. To increase their chances, they are aligning their strategies with various categories within the BBB, including innovation and care, technology, behavioral health, and workforce development.
However, the BBB has faced criticism. It is estimated to add at least $3.4 trillion to the national debt, and critics argue that it cuts more than $1 trillion from health programs, potentially causing 10 million people to lose their health insurance coverage. Furthermore, the BBB may potentially reduce Medicare funding by up to $500 billion between 2026 and 2034.
Despite these concerns, the BBB bill may provide funds for supporting rural healthcare in new and different ways. The Rural Health Transformation Program, established by the Act, is a significant step towards addressing the healthcare disparities in rural areas.
Applications from states are due by November 5, 2025, and award decisions will be made by December 31, 2025. The distribution of funds from the Rural Health Transformation Program will continue until 2030.
