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Montana wins $233 million first‑year Rural Health Transformation award; DPHHS outlines five priorities
Summary
DPHHS announced a $233 million first‑year award under the federal Rural Health Transformation Program and outlined five initiatives focused on workforce, hospital stability, value‑based care including EMS Treat‑in‑Place, community‑based services, and health IT. Officials said CMS approval of the resubmitted budget is required before spending begins.
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Helena — The Department of Public Health and Human Services told the Legislature’s Children, Families, Health and Human Services interim committee that Montana received $233 million in the first year of the federal Rural Health Transformation Program and is moving quickly to spend it. Director Charlie Brereton and Gene Hermanson, Deputy Medicaid Director and acting RHTP director, said the state must resubmit a budget to the Centers for Medicare & Medicaid Services and cannot spend the award until CMS approves that submission.
DPHHS said the award will fund five broad initiatives: (1) workforce recruitment and retention, including expanded residency slots, apprenticeships and wellness programs; (2) operational support and a Montana Rural Health Center of Excellence to help hospitals achieve financial sustainability; (3) incentives for value‑based care and a Treat‑in‑Place EMS model, plus upgraded EMS equipment and expanded pharmacy scope of practice; (4) increased community‑based primary and behavioral health, including school‑based services and mobile care vans; and (5) health information and analytics investments to upgrade EHRs and consumer tools.
"We were notified on Dec. 29 of our award and we received $233,000,000 in the first year of the five‑year program," Hermanson said, adding that Montana ranked fourth among states in the size of its initial award. He told the committee the department will resubmit a budget to CMS by the end of January and must submit quarterly and annual progress reports; the first year funding period ends July 31, and the state must report in August.
Lawmakers pressed DPHHS staff on program detail and timing. Hermanson said the department plans to issue several procurements and RFPs through the calendar year and to post open positions for a project management team, grant manager, budget analyst and tribal/community liaisons. The department also plans a stakeholder advisory committee to meet in Bozeman on Jan. 22 to gather input from tribal partners, FQHCs, hospitals and payers.
DPHHS said it would supply the committee with an overview of EMS‑related activities and more detailed procurement timelines as requested by lawmakers. The department also said it is considering—though not yet planning—a sustainability trust-like structure for future years in discussion with the legislature.
Officials said CMS has instructed states to resubmit budgets showing the award and that the department will seek quick approval to begin implementation. Pending CMS approval, DPHHS plans a highly visible early‑action effort on workforce and telehealth expansion to demonstrate progress and strengthen Montana’s chances for larger awards in subsequent years.
What’s next: DPHHS will deliver a written overview of EMS initiatives and the RHTP procurement timeline to the committee and convene the stakeholder advisory committee in late January. CMS approval of the revised year‑one budget is the gating item before any spending begins.
