Governor Kim Reynolds recently announced that Iowa has officially submitted its application for the federal Rural Health Transformation Program, an initiative overseen by the Centers for Medicare and Medicaid Services. If the plan is fully funded, Iowa could receive up to $200 million per year over a five-year period, totaling $1 billion to support the effort.
The proposal, called “Healthy Hometowns”, aims to strengthen health care in rural communities across the state.
The proposal focuses on addressing challenges in rural areas, including longer travel times for hospital and primary care access, workforce shortages and higher rates of chronic disease. Nearly every Iowa county with below-average health insurance coverage is located in a rural area.
Healthy Hometowns would implement a “hub and spoke” model of care through six major initiatives: expanding telehealth, investing in new medical equipment and services for uninsured patients, recruiting health care workers, improving cancer screening and treatment, coordinating care through shared facilities, strengthening health information sharing, and providing more mobile emergency medical services.
The state projects that within five years, the program would increase the number of residents receiving care locally, reduce preventable emergency room visits, expand telehealth offerings and improve provider-to-population ratios in rural counties.
Iowa’s proposal also includes commitments to federal policy goals, including enhanced physical fitness programs, expanded nutrition education for medical professionals, increased access to mental health providers and streamlined behavioral health services.
Notices of state awards are expected on or by December 31, 2025.
