NC officials want early successes from the new rural health program ...Middle East

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North Carolina will have $213 million in federal funds to spend this year to improve rural health care, and will be eligible for more money each year over the next four years. 

The money for the new “rural health transformation program” is coming from $50 billion that was included in the OBBBA, the massive federal law passed last year that cut taxes and cut Medicaid, the federal health insurance program for people with low incomes. 

The fund is meant to help ease the impact of the cuts on rural areas, where residents have a harder time accessing care and where health care providers are more likely to rely on Medicaid payments than providers in urban areas. 

Every state received money from the rural health fund. The federal government will review states’ progress to determine future funding. Debra Farrington, deputy secretary for health at the NC Dept. of Health and Human Services, said it will be important to demonstrate early wins by delivering immediate and visible benefits to communities.  

“Year-one successes are vitally important,” she said. It’s also critical to use the first year to build momentum toward achieving long-term goals, she added.

During an online discussion Friday about the rural health transformation program rollout, Farrington said North Carolina plans to spend the money on:

Six locally-governed NC ROOTS hubs to connect medical, mental health, and social supports   Prevention, chronic disease management, maternal health, and nutrition programs   Increased access to mental health services, including substance use disorder treatment   The rural health care workforce   Rural providers’ transition to to value-based care, where providers are paid based on keeping people healthy and out of the hospital rather than on how many services are provided Enhanced technology in health care through artificial intelligence and expanded broadband access 

“This is really potentially a generational opportunity to invest in the things that we really need to be investing in for our rural communities,”  said NCDHHS state health director Dr. Larry Greenblatt, “things that will make a difference to the individuals living in those communities to improve their health, but also to recruit and support the workforce.”

The federal government is giving states money with one hand, and taking money away with the other.  

“This funding will improve health care delivery for the more than 3 million North Carolina residents who live in rural communities,” Gov. Josh Stein said. 

But, he warned, the same federal legislation that created the rural health transformation program will cost the state tens of billions of dollars in Medicaid funds over the next 10 years. 

“It is without doubt that these cuts will inevitably hit rural communities hard,” despite the rural funding program, he said. 

Stein said his administration will continue to urge Congress to repeal the Medicaid cuts. 

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