New York Receives $212 Million for Rural Healthcare

By ERIC SANTOMAURO-STENZEL
ALBANY

The federal Centers for Medicare and Medicaid Services has awarded New York State more than $212 million in 2026 under the federal Rural Health Transformation Program. More funding is expected in future years.

“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Health and Human Services Secretary Robert F. Kennedy Jr. said in a press release about the $50 billion nationwide investment going to all 50 states.

“This historic investment puts local hospitals, clinics and health workers in control of their communities’ healthcare. Thanks to President Trump’s leadership, rural Americans will now have affordable healthcare close to home, free from bureaucratic obstacles,” Kennedy said.

Federal officials said the money will be used to expand access to care in rural communities, strengthen the rural health workforce, modernize rural facilities and technology, and support innovative models that bring high-quality, dependable care closer to home. From 2026 to 2030, $10 billion per year will be distributed by CMS to states for that purpose.

New York’s Rural Health Transformation Plan funding application included four components: establishing coordinated rural health partnerships; strengthening rural communities with technology-enhanced primary care; building a sustainable rural healthcare workforce; and investing in technology innovation and cybersecurity enhancements.

“All New Yorkers deserve the right to have access to critical healthcare services, regardless of where they live,” New York State Health Commissioner Dr. James McDonald said in a press release. “The State Department of Health remains committed to strengthening rural healthcare through innovative and strategic investments that will build a resilient and sustainable foundation of healthcare that will benefit New Yorkers for generations to come.”

New York officials said they will work with CMS to finalize the details of the cooperative agreement before providing additional information to stakeholders. Locally, Bassett Healthcare Network said they did not have appropriation details yet but welcomed the investment.

“We are deeply grateful to CMS for recognizing the vital role rural hospitals play in our communities in New York State and around the country,” Staci Thompson, MHA, FACMPE, president and chief executive officer of Bassett Healthcare Network said in a statement to AllOtsego. “Bassett Healthcare Network will leverage every opportunity afforded to us to support our mission. We look forward to learning more about these appropriations.”