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Michigan awarded $173 million for federal rural health grant; lawmakers press MDHHS on how funds will be prioritized
Summary
Michigan received $173,128,201 in the first-year Rural Health Transformation award; MDHHS told the House Appropriations Committee the funds must be innovative and cannot duplicate Medicaid, while lawmakers pressed the department on rural definitions, per-capita ranking, and distribution to fully rural counties and hospitals.
Michigan received $173,128,201 in federal Rural Health Transformation funding for its first year, MDHHS told the House Appropriations Committee on Jan. 21. Beth Nagel, Senior Deputy Director of Policy Planning and Operational Support at the Michigan Department of Health and Human Services, presented the state's plan and outlined CMS requirements that the funding support new, innovative programs rather than replace Medicaid funding.
The award is part of a federal $50 billion, five-year program; CMS released $10 billion for year one. Nagel said Michigan's award amounts to roughly $83 per rural resident using a per-resident analysis cited in the department's materials and that the state received a year-one grant of $173,128,201. She noted the department used HRSA's rural classification (75 counties identified as rural by that metric) and carved out 5% of the…
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