The North Carolina Department of Health and Human Services (NCDHHS) plans to apply for the Rural Health Transformation Program (RHTP) in response to anticipated financial losses from federal Medicaid cuts under H.R. 1, signed into law in July 2024. The North Carolina Department of Health and Human Services is seeking input from health providers to shape the state’s funding proposal.
The RHTP will provide $50 billion over five years to support rural health care nationwide. According to North Carolina Department of Health and Human Services, North Carolina’s rural hospitals are projected to lose $3.7 billion due to Medicaid reductions. The program aims to increase access to care and support hospitals and providers in maintaining essential health services.
The North Carolina Department of Health and Human Services has begun hosting forums to gather feedback from partner organizations. Funds will be distributed in two phases, with the second $25 billion allocated at the discretion of the Centers for Medicare & Medicaid Services (CMS). North Carolina is preparing to compete for a substantial share.
H.R. 1’s Medicaid cuts are expected to total $1 trillion nationwide over 10 years, including $49.9 billion in North Carolina. CMS is expected to release application guidelines by September, with state plan approvals anticipated by the end of 2025. More details on the provider application process are expected in early 2026.
