Alabama Secures $203 Million to Overhaul Rural Health Care in Landmark Federal Program

T.L. Sullivan | The Weekly Ledger News | Regional News

MONTGOMERY, Ala. — Rural communities across Alabama are set to see sweeping changes in health care access and services after Governor Kay Ivey announced the state has officially secured more than $203 million in first-year funding under the federal Rural Health Transformation Program (RHTP).

The approval came as the Centers for Medicare & Medicaid Services (CMS) issued the state’s award number, formally greenlighting Alabama’s comprehensive plan and unlocking $203,404,327 for the program’s first year. The five-year initiative aims to improve access, quality of care, and health outcomes for rural residents and will be administered by the Alabama Department of Economic and Community Affairs (ADECA).

Image courtesy of Governor's Office/Hal Yeager.

“We are very pleased Alabama will be awarded more than $203 million in the first year of the Rural Health Transformation Program,” Governor Ivey said. “After President Trump signed the One Big Beautiful Bill Act into law in July, Alabama got to work preparing for this program so we could hit the ground running once our state’s new comprehensive rural health strategy was approved. Now that it has been approved, we will take the next steps to ensure our citizens and communities benefit for generations. Making America Healthy Again begins in rural America, and I look forward to being able to improve health care across Alabama.”

The RHTP was created under the One Big Beautiful Bill Act, adopted by Congress in July. Anticipating approval, Governor Ivey directed state agencies to build a statewide rural health strategy so Alabama would be prepared to deploy resources quickly once the federal program launched.

“ADECA appreciates the trust the Governor has placed in us to administer this program,” said ADECA Director Kenneth Boswell, emphasizing the impact the initiative is expected to have on underserved communities statewide.

In December, Governor Ivey signed an executive order establishing the Alabama Rural Health Transformation Advisory Group, which will guide implementation, policy development, and oversight.

The state’s plan features 11 major initiatives designed to modernize medical systems, strengthen the rural workforce, and expand lifesaving services:

• Collaborative Electronic Health Record (EHR), IT and Cybersecurity Initiative

• Rural Health Initiative

• Maternal and Fetal Health Initiative

• Rural Workforce Initiative

• Cancer Digital Regionalization Initiative

• Simulation Training Initiative

• Statewide EMS Trauma and Stroke Initiative

• EMS Treat-In-Place Initiative

• Mental Health Initiative

• Community Medicine Initiative

• Rural Health Practice Initiative

The plan was developed through coordination among the Governor’s Office, ADECA, Alabama Department of Finance, Alabama Medicaid Agency, and the Alabama State Health Planning and Development Agency, alongside input from health experts, lawmakers, hospitals, and community stakeholders.

ADECA has launched a webpage dedicated to the Rural Health Transformation Program and will continue to update the public as implementation moves forward. Tap Here

The Weekly Ledger News will continue to follow developments as Alabama begins deploying funds and rolling out new services across rural communities

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