July 30,2025

The One Big Beautiful Bill Protects Rural Hospitals

Washington, D.C.--Through the Rural Health Transformation Program (RHTP), the One Big Beautiful Bill Act (OBBBA) makes the single largest investment in rural health care since the Medicare Modernization Act of 2003.

 

Rural hospitals have faced ongoing issues for many years, including low patient volumes, inadequate workforces, crumbling infrastructure, outdated technology and changing reimbursement trends. The fiscal vulnerabilities they face are multifaceted and often unique to each facility. The $50 billion rural hospital fund is intended to provide immediate relief to rural hospitals while allowing facilities to establish the tools necessary to be successful in the long term.

 

“This legislation makes the largest investment in decades in rural health care, ensuring states have the resources they need to address the unique challenges facing their rural hospitals,” said Finance Committee Chairman Mike Crapo (R-Idaho). “This is an efficient way to ensure the sustainability of our rural health care facilities while protecting taxpayer dollars from waste, fraud and abuse.”

 

Read the fact sheet about the Rural Health Transformation Program HERE.

 

Key Points About the Rural Health Transformation Program:

 

  • The Rural Health Transformation Program (RHTP) supplies $50 billion to stabilize and strengthen rural hospitals and providers.

 

  • Fifty percent of the $50 billion funding allocation will be divided equally among states that submit an application to the Centers for Medicare & Medicaid Services (CMS).

 

  • The remaining 50 percent will be distributed to states based on a formula developed by the CMS Administrator. The law requires the CMS Administrator to consider a state’s rural population, proportion of health care facilities in rural areas and situation of hospitals that serve a high proportion of low-income patients.

 

  • Assuming all 50 states apply and are approved, each state will receive at least $100 million per year for five years.

 

  • Because rural hospitals and providers face vulnerabilities that are multifaceted and unique, the RHTP allows the states--who know the issues in their communities better than the federal government--to work with providers to determine the best use of funds. This will give rural hospitals the tools to stabilize their finances in the short term and offer states the opportunity to create a long-term plan.

 

Click HERE to learn more about the Finance Committee provisions in the One Big Beautiful Bill Act.