September 2025

MSMA To Provide Comments Concerning the Rural health Transformation Program

The Rural Health Transformation Program was included in the "One Big Beautiful Bill Act" signed into law on July 4, 2025. This program sets up a fund of $50 billion dollars to be distributed by the Center for Medicare and Medicaid Services (CMS) to the States for the purposes of funding new and innovative measures to help address rural healthcare disparities. 

The timeline for States to submit an application to CMS is aggressive and the state of Missouri is already asking for stakeholders such as the Missouri State Medical Association to submit public comments as a means of helping inform the state on what to apply for on their state application to the CMS.  

MSMA has long been concerned by and committed to helping address the great need Missouri’s rural communities face when it comes to a lack of healthcare services, particularly a lack of physicians.   

This program may serve as an excellent opportunity to secure funding to improve the retention efforts of resident physicians who might otherwise leave the state upon completion of their residency. Moreover, this funding could be used in part to help ensure that physician medicare and medicaid reimbursements are incentivized for physicians to provide more services in rural areas. 

It is expected that the state will also seek to support rural hospitals with some of the funding as they look to replace funds that were available under the Federal Reimbursement Allowance (FRA), which is set to be substantially reduced under separate provisions contained within HR 1. 

We will be sure to keep the membership posted on any new developments concerning this application process. For more information, visit https://mydss.mo.gov/mhd/hot-tips/invitation-comment-rural-health-transformation-program.