KDHE outlines $221 million Rural Health Transformation Plan, lawmakers press on speed, measurement and transparency

Janet Stanek, secretary of the Kansas Department of Health and Environment, briefed the Committee on Social Services Budget on the state’s $221,000,000 Rural Health Transformation Plan grant on Feb. 11, outlining program priorities, governance and the reporting requirements that will govern drawdowns and awards.

"We got 221,000,000, so we got way more than we thought," Stanek said, describing the award as a five‑year drawdown tied to a detailed plan and stringent Centers for Medicare & Medicaid Services reporting. She said the money is not a lump‑sum payment but will be accessed as the state satisfies spending and outcome milestones.

The plan centers on five pillars: expanding primary and secondary prevention, securing local access to primary care, building a sustainable rural health workforce, enabling value‑based care, and harnessing data and technology. Stanek highlighted initiatives such as community health worker expansion, a "food as medicine" program, workforce development from K‑12 through CNA certification and an Anchor Hospital Advancement program run with the University of Kansas Care Collaborative.

Year‑one funding includes a $44,000,000 competitive pool for regional partnership and capital project grants and $15,000,000 set aside for capital investments, Stanek said. KDHE must submit regular reports to CMS; the first program report is due July 31, and the state must demonstrate the $221,000,000 has been allocated by Oct. 30. Stanek said the year‑two application window opens Oct. 31.

Lawmakers pressed KDHE on several implementation risks. Representative King asked whether the state could expect comparable funding in year two; Stanek said, "Our goal will be to get the same," but acknowledged CMS decisions and program variables could affect future awards. Representative Carpenter and others worried about whether state agencies and rural providers can move fast enough to meet reporting windows and deliver measurable outcomes, particularly for behavioral health programs where historical data collection has lagged.

Stanek described governance and partnership structures: the governor designates a state agency to receive and oversee the award (KDHE is the lead), a Kansas Rural Health Innovation Alliance will advise the effort, and KU’s Care Collaborative will assist with coordination. KDHE plans to use third‑party consultants for project setup (Stanek identified BCG and a fiscal agent, noted as BDO) and to hire an in‑state director and project manager to run the program.

On transparency, Stanek said the application, budget spreadsheets and meeting materials are posted on KDHE’s RHTP webpage and offered to provide direct links and cross‑reference briefings for committee members. She emphasized safeguards to prevent supplanting existing Medicaid‑funded services: "You cannot supplant," she said, noting CMS rules prohibit duplicating services already reimbursed through Medicaid.

Several members asked about eligibility and criteria for the Anchor Hospital program and whether non‑rural systems could apply; Stanek said applicants must demonstrate how a project would positively affect rural areas and cannot simply improve an urban provider’s bottom line. She also said the plan includes transport and non‑transport EMS initiatives and technical assistance to help hospitals convert to Rural Emergency Hospital status where appropriate.

Stanek urged continued legislative collaboration on any needed statutory or Medicaid changes, saying some initiatives may require modest regulatory or caseload approvals. She offered to provide further briefings and detailed spreadsheets to committee members and repeated that CMS will be closely involved in reviewing budgets, reports and program performance.

The committee adjourned after approximately one hour of presentation and questioning; KDHE committed to sharing the RHTP webpage link and to coordinate follow‑up briefings for members who requested more detailed line‑item budget crosswalks.