New York applies for $1 billion under federal program for rural health transformation

James V. McDonald M.D., M.P.H. Health Commissioner at New York State Department of Health
James V. McDonald M.D., M.P.H. Health Commissioner at New York State Department of Health - New York State Department of Health
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The New York State Department of Health has submitted an application to the Centers for Medicare & Medicaid Services (CMS) seeking $1 billion through the federal Rural Health Transformation Program. The decision on which states will receive awards is expected by December 31, 2025.

Alongside the application, the Department has launched a new website to provide information about the key initiatives included in its proposal. The effort aims to address health disparities and improve healthcare services in rural parts of New York.

State Health Commissioner Dr. James McDonald stated, “The Department, under the leadership of Governor Kathy Hochul, remains committed to working with our federal, state and local partners to ensure we are bringing high quality and affordable health care services to rural communities. This effort reflects our ongoing mission of promoting and protecting the health and well-being of all New Yorkers, building on a foundation of health equity.”

New York covers over 47,000 square miles of rural land. More than 2 million residents—over 10 percent of the state’s population—live in these areas. Many face challenges related to healthcare access, including primary care, behavioral health services, care coordination, and higher rates of chronic conditions.

Office of Mental Health Commissioner Dr. Ann Sullivan commented, “Expanding access to services in underserved communities is an important part of our effort to strengthen mental health care statewide. The Rural Health Transformation Grant will help New York State explore new partnerships, build our health care workforce, and pursue innovative opportunities to expand care in these areas. Under Governor Kathy Hochul’s leadership, we are helping New Yorkers in our rural areas access the critical care they can rely on to keep themselves and their families healthy.”

The Department’s application outlines several initiatives that aim to use innovation and strategic investment to improve healthcare quality across rural regions by working with local providers and regional partnerships.



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