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*For Immediate Release:    *     
September 25, 2025
          
*Contact:    *     
Grace Hoge
[email protected]

Governor Kelly Announces Process for the
Rural Health Transformation Program

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TOPEKA* – Governor Laura Kelly today announced that the state is taking steps to develop an application for the $50 billion Rural Health Transformation Program (RHTP).

The Rural Health Transformation Program is part of H.R. 1, which enacted significant funding and coverage cuts to the Medicaid program that will threaten the viability of rural hospitals across the state that were already at risk of closing.   

“We are committed to ensuring that rural Kansans have access to high-quality, affordable health care near their homes,” *Governor Laura Kelly* *said.* “As a state with one of the highest rates of struggling rural hospitals in the nation, this funding through the RHTP is essential. Though the funds will not make up for the federal cuts to the Medicaid program, these resources will allow the state to make fundamental changes to the rural health care system to protect rural Kansans’ access to health care near their homes.”

The RHTP is intended to infuse millions of dollars into states’ health care systems and to bolster rural communities by improving the access and quality of care available to Kansans. Of the $50 billion RHTP, $25 billion will be distributed evenly to states whose applications are approved, and the other half will be dispersed based on factors outlined by the Centers for Medicare and Medicaid Services (CMS) in the application released on September 15. Kansas must submit one application for this funding, which will be distributed over the next five years, by November 5. CMS will then announce the funding awards by December 31.

Governor Kelly is creating the Kansas Rural Health Innovation Alliance to convene a group of stakeholders who will oversee the development of the application, and the implementation of the initiatives to be outlined in Kansas’ plan. The state, in association with the University of Kansas Health System Care Collaborative, will present an educational webinar on Monday, September 29, at 9:00 a.m. to further outline the application and stakeholder engagement process.

“I look forward to partnering with the Care Collaborative Team and our state interagency task force,” *Kansas Department of Health and Environment Secretary Janet Stanek said.* “This collaboration will help to ensure a strategic approach to this five-year funding opportunity.”

“We look forward to working with the Alliance,” *Kansas Department for Children and Families* *Secretary Laura Howard said.* “Their ideas will ensure Kansas’ proposal meets the needs of rural Kansans and providers.”

The University of Kansas Health System Care Collaborative is a well-established network of rural health care providers focused on researching and implementing evidence-based methods to improve Kansans’ health outcomes. Their assistance will enable the state to submit a successful application that secures funding to sustain our rural health care delivery system.

To register for the educational webinar, please click here [ [link removed] ]. To learn more about the Rural Health Transformation Program, please visit this webpage [ [link removed] ].

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