States don’t just need to plan, they need a way to prove their plans are working.
Rural communities across the United States continue to face a distinct set of healthcare challenges. Limited access to care, ongoing health disparities, socioeconomic pressures and persistent barriers to telehealth have made Medicaid a critical lifeline in these areas. When Medicaid funding tightens, rural communities often experience negative health outcomes first—and most intensely.
To help address these long-standing issues, the Rural Health Transformation (RHT) Program—introduced through the One Big Beautiful Bill Act of 2025—commits $50 billion in federal funding to stabilize, strengthen and modernize rural healthcare systems nationwide, but funding is only part of the story.
What matters now is execution. While timelines vary by state, the Centers for Medicare & Medicaid Services (CMS) will begin evaluating progress in 2026. Those evaluations will play a key role in determining levels for the second round of funding, set to be announced in October 2027.
That puts states on a tight timeline, and since plans were approved and funding allocations announced, many stakeholders have raised practical concerns. Across the country, the same questions are coming up. Can initiatives be implemented as planned? What happens if adjustments are needed along the way? And will states be able to collect, validate and report data quickly enough to make real progress in meeting CMS requirements tied to future funding?
These are not theoretical concerns — they’re operational realities, and the window of opportunity is narrow.
Many states are now looking for ways to streamline how they manage data and report outcomes. Scalable, configurable systems will be critical — not just for meeting federal requirements, but for ensuring these investments translate into meaningful improvements for rural communities. Those that succeed won’t just be the ones with strong plans, they’ll be the ones that can track progress clearly, adapt quickly and report results with confidence. Because when the CMS deadlines arrive, it won’t be about what was proposed, it’ll be about what can be demonstrated.
This is a pivotal moment. For organizations that have been working alongside state and local agencies for years, it feels familiar. The need to bring together data from multiple sources, simplify reporting and validation, support better decision-making and create visibility into what’s working (and what’s not) in real time isn’t new—but the stakes are higher than ever. With the right tools and approach, states have an opportunity not only to secure future funding, but to build more responsive, resilient systems for rural health long-term. The difference will come down to how well progress is measured, managed and communicated.
We’re here to help.
At FEI, we applaud state efforts to submit applications and pursue efforts that contribute to transparency, actionable insights and, ultimately, improved outcomes. For more than 25 years, we’ve developed and supported technology solutions and services that change the way health and human services are delivered, and we’re ready to partner with you to ensure your investments in Rural Health Transformation deliver lasting impact. Contact us to learn more.
