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$50B Rural Health Transformation Program Needs More Transparency, Groups Say

One year into its creation, a $50 billion federal program aimed at improving rural healthcare lacks transparency, which could make it difficult to protect against fraud, identify successful projects, and ensure the program delivers on its promise to transform the system.

Transparency 鈥渋s really important to help protect the integrity of the program, ensure funds are reaching the communities they鈥檙e meant to serve,鈥 said Maya Sandalow, director of health policy for the Bipartisan Policy Center, a nonprofit think tank.

The federal government and states are compelled by public records laws to share documents when requested. But those requests can take months to fulfill, making their release too late for meaningful oversight as states rush to spend their allotments under tight federal deadlines.

In the meantime, the Centers for Medicare & Medicaid Services 鈥 which oversees the Rural Health Transformation Program 鈥 and some states aren鈥檛 proactively sharing information about where the funding is going and how it will be used.

CMS spokesperson Timothy Foster said the agency 鈥渨ill publish an annual report on state progress.鈥

States鈥 individual reports to CMS are 鈥渋ntended to be鈥 shared upon request, but the agency won鈥檛 be proactively publishing the individual state reports, according to a CMS document.

Foster didn鈥檛 respond to questions about whether the agency will share examples of projects that are and aren鈥檛 working or create a tracker of funding recipients, award amounts, and what organizations plan to do with their funding 鈥 ideas that health and government transparency advocates have requested.

Instead, much of the program鈥檚 transparency thus far has been up to state governments, and 鈥渢he level of details that states have publicized really varies,鈥 said Sandalow, who co-wrote a on how the federal government can strengthen the rural health program, including through transparency.

Some states are sharing information with lawmakers, holding public meetings, and explaining where organizations plan to invest their money.

Others are more secretive, with multiple states declining to release public records in response to 杨贵妃传媒視頻 Health News鈥 requests. 惭颈蝉蝉颈蝉蝉颈辫辫颈鈥檚 governor , West Virginia holds closed-door advisory meetings, and a South Dakota official wrote that he hoped CMS would keep its application from public view.

鈥淚 just don鈥檛 believe in all this secrecy,鈥 said Mississippi state Sen. Hob Bryan, who chairs his chamber鈥檚 public health committee. 鈥淚f they鈥檙e not up to something nefarious, why do they have to do it all in secret?鈥

Bryan, a Democrat, said there鈥檚 about the lack of transparency in his state.

Reaching Rural Patients

Congressional Republicans created the five-year Rural Health Transformation Program last summer as an eleventh-hour sweetener to President Donald Trump鈥檚 signature One Big Beautiful Bill Act. The money was intended to offset concerns about the anticipated in rural communities from the law, which is expected to by more than $900 billion over a decade.

Sandalow said some states may be struggling to share information since they鈥檙e busy rushing to hire staff and meet the program鈥檚 tight deadlines, including an annual report due Aug. 31.

In the meantime, a slew of media outlets, nonprofits, and businesses are stepping in to make it easier for the public to track the rural health program.

杨贵妃传媒視頻 Health News is collecting states鈥 applications and approved plans and budgets, not all of which have been posted on state websites.

And several and have created trackers that , post funding opportunities, or list award recipients. But some resources are available only through paid services, aimed at helping businesses interested in applying for money.

Sandalow said previous federal programs 鈥渢end to draw attention for gaps in transparency and oversight rather than for doing it well.鈥

As an example, she pointed to the lack of oversight and transparency with the CARES Act and other covid relief programs, which saw .

In March, CMS published proposed quarterly and annual state reporting requirements for the rural health program, and a . At least three groups replied with letters expressing concerns about transparency.

CMS should share states鈥 progress reports, funding recipients, and what organizations plan to do with their awards, , the Bipartisan Policy Center鈥檚 vice president for health policy.

Sharing this information would make it easier to track progress, identify successful programs that other states may want to replicate, and 鈥渆nsure funds reach the rural communities they are intended to serve,鈥 he wrote.

Molly Smith, group vice president for public policy at the American Hospital Association, 鈥渢o be as detailed as possible鈥 about the 鈥渇inal destinations of these funds, given the complexity of the grant funding process.鈥

In , Charlene MacDonald, who leads the Federation of American Hospitals, noted that some funding recipients, such as large health systems and academic medical centers, will be distributing their awards to other entities.

CMS should collect those 鈥渄ownstream subrecipients,鈥 wrote MacDonald, whose group represents for-profit hospitals and healthcare systems.

Without this information, she said, it will be difficult to know if 鈥渇unding is reaching the rural hospitals, providers, and communities primarily intended to benefit from the program.鈥

It can also be difficult to know which for-profit companies are being paid with rural health money.

For example, and have listed hospitals and other health facilities that received funding to purchase telehealth, scanning devices, and other health technology. But the states list only some of the companies from which recipients will buy those products.

States won鈥檛 have to report 鈥渄ownstream鈥 funding in their August reports to CMS but will have to do so for all future reports, according to the agency鈥檚 recently finalized .

The CMS documents say states must list subrecipients that receive subawards as well as vendors or contractors paid by an organization using rural health funding. Although states must report how much money these downstream recipients receive, they don鈥檛 have to describe which specific services or products the recipient is providing.

DIY Dashboards

As groups ask CMS to share more information, some states have created their own rural health spending dashboards or recipient lists, with varying levels of detail.

Alaska, , and other states list which organizations receive funding, their award amounts, and detailed descriptions of how recipients will spend the money.

and , however, are among the states that don鈥檛 share what awardees plan to do with their funding.

New Hampshire is that detail projects and their budgets on its Rural Health Transformation Program website. Some other states have uploaded contracts and grants on general procurement or award databases, which can be difficult to navigate.

, , and have used press releases to announce awards. But the announcements aren't posted on their Rural Health Transformation Program websites, which could make it difficult to find this information.

Many states created advisory groups to provide transparency and accountability for their programs. Most committees host public meetings and upload minutes, recordings, or other materials from the discussions.

But the West Virginia Department of Health won鈥檛 share what鈥檚 discussed in its rural health advisory panel鈥檚 closed-door meetings, according to spokesperson Gailyn Markham.

鈥淭he panel is intended to serve as an informal forum for discussion and feedback among invited participants and program staff,鈥 Markham said.

South Dakota, North Dakota, and Mississippi are among the states without advisory committees.

In response to public records requests, South Dakota released a nearly completely redacted version of its budget for the rural health program while Mississippi declined to release its budget.

惭颈蝉蝉颈蝉蝉颈辫辫颈鈥檚 he vetoed a because it would "create an unnecessary layer of bureaucracy鈥 that would have slowed the award process, which could cause the state to lose out on future funds. Mississippi is 鈥 in all this secrecy,鈥 Bryan, the state lawmaker, told 杨贵妃传媒視頻 Health News.

Sandalow said it鈥檚 important for states to publish the impact of their rural health projects, adding that CMS should share which rural health projects are and aren鈥檛 working.

She said national and state health organizations are creating networks and holding conferences to help spread this information. States should 鈥渂e able to learn from each other, get a sense of lessons learned and best practices, and then be able to pivot their initiatives accordingly,鈥 Sandalow said.

Michael Cannon, who oversees health policy studies at the libertarian Cato Institute, said people should know how their $50 billion in taxes is being spent on the rural health program, and whether state projects are making rural patients healthier.

If investors put that much money into a project, there is 鈥渘o way鈥 they 鈥渨ould let the recipients of those funds get away with the shoddy approach to transparency and accountability that the states are taking,鈥 he said.

杨贵妃传媒視頻 Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

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