Louisiana maximizes first-year Rural Health Transformation funding to strengthen rural hospitals, health, communities

Louisiana Department of Health focused on improvements across multiple areas of rural health care

BATON ROUGE – The Louisiana Department of Health (LDH) has completed the first year of funding awards through the Louisiana Rural Health Transformation Program (RHTP), directing the maximum funding allowable under federal guidelines to support rural facilities while advancing a broader strategy to improve health outcomes and strengthen rural communities across the state.

Louisiana received approximately $208 million in first-year funding through the Rural Health Transformation Program from the Centers for Medicare & Medicaid Services (CMS). Demand far exceeded available funding, with LDH receiving more than $498 million in requests across 551 applications. LDH obligated 100 percent of the available funding across five key initiatives: workforce, technology innovation, innovative care models, Make Rural America Healthy Again, and sustainable access for rural health care facilities.

“We have a rare opportunity to transform the future of rural health care in Louisiana, and Year One proves we’re ready to seize it,” said LDH Secretary Bruce D. Greenstein. “We secured historic funding and committed every available dollar under federal guidelines to strengthening rural communities. Our hospital, clinic, workforce, education, technology, and community partners are all essential to creating a stronger, more sustainable rural health system. Together, we’re not just investing in rural health care today. We’re shaping a stronger, healthier rural Louisiana for decades to come.”

The Rural Health Transformation Program, established through federal legislation in 2025, provides $50 billion nationally over five budget periods to support innovative, sustainable improvements in rural health care. Louisiana’s first-year award of $208.4 million was among the highest in the nation.