09/29/2025
The federal budget law enacted earlier this year includes the Rural Health Transformation Program, a $50 billion fund that will be allocated to states over five years to soften the impact on rural areas of reduced spending on healthcare coverage programs. The Rural Health Association of Arkansas has adopted a set of recommendations for utilizing Arkansas's allocation of funds.
Dear RHAA members,
The Board of Directors of the Rural Health Association of Arkansas has prepared a set of recommendations for the State of Arkansas regarding the development of projects and allocation of funds through the Rural Health Transformation Program, established as part of the One Big Beautiful Bill. These funds are designed to strengthen rural healthcare systems by improving the quality of care, reducing costs, and ensuring the long-term sustainability of healthcare in rural communities.
Outlined below are the Association’s recommendations for how these funds should be utilized:
DEVELOP A FAIR AND TRANSPARENT PROCESS FOR DISPENSING AND MONITORING FUNDS
• Establish clear goals and criteria for applicants.
• Conduct open meetings for application consideration and publicly report spending in a detailed and transparent manner.
• Ensure heightened scrutiny of applications which include partners, vendors, or investors that might create conflicts of interest or unintended consequences for healthcare quality and access.
• Require disclosure of financial status, risks, and relationships.
• Make funding contingent on explicit service delivery commitments and ensure that funds are used either directly or indirectly for the benefit of rural health in Arkansas.
EMBRACE A REGIONAL MINDSET
• Recognize the interdependence of rural communities and the potential benefits of regional approaches to service delivery, including collaboration across sectors when appropriate.
• Encourage applications that pool resources and expertise and demonstrate long-term, formal regional networks for prevention, treatment, rehabilitation, and other efforts, with capacity to share services and reduce travel burdens for patients.
• Use state oversight to remove collaboration barriers and leverage resources.
• Support non-traditional sites of service and explore innovative partnerships and technology that expand regional reach.
USE EVIDENCE TO GUIDE FUNDING DECISIONS
• Prioritize funding of initiatives that are supported by evidence.
• Assess specific needs and demand for services within rural populations, including outmigration of services that could be provided locally, with a focus on mitigating negative impacts on access and ensuring support for those with the greatest health needs.
• Monitor fiscal impacts of federal and state policy on rural healthcare providers and direct funding correspondingly.
SUPPORT ESSENTIAL SERVICES WHILE ENCOURAGING INNOVATION
• Safeguard emergency services through payments for fixed costs so that providers offering those services can absorb standby capacity, even when patient volume and related revenue are not high enough to cover the expenditures.
• Encourage demonstration initiatives that are accompanied by scientifically rigorous evaluations.
• Reduce financial barriers to invest in shared technology for remote delivery of care and patient data exchange.
• Strengthen local access to primary care including preventive care and chronic disease management, maternal care, and the ability to identify and address health-related social needs.
• Bolster transportation for follow-up services that directly support patient access to services not locally available.
INVEST NOT ONLY IN INFRASTRUCTURE AND INSTITUTIONS BUT ALSO IN PEOPLE
• Identify facility or equipment challenges that serve as a barrier to optimizing service delivery.
• Invest in technical assistance to support adoption of technology-enabled solutions, financial stewardship, workforce recruitment, retention, and training, and administrative or governance capacity.
• Engage community members in identifying and prioritizing their most pressing needs and ensure that community-based mental health services are part of the conversation.
For questions or additional information, please reach out to us anytime at admin@rhaarkansas.org or (870) 888-2088.