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Federal rural health program awards Tennessee $207 million, TennCare says
Summary
As part of federal changes embedded in recent legislation, Tennessee secured $207 million for a first-year rural health transformation program; TennCare Director Steven Smith said the national program provides $50 billion over five years and will support rural health initiatives.
TennCare Director Steven Smith told the House Insurance Committee that recent federal legislation establishes a national Rural Health Transformation program that will provide $50 billion over five years for rural health initiatives and that Tennessee was approved for $207,000,000 in the program's first year.
Smith described the award as "a tremendous outcome and opportunity to improve health in our rural communities," and said those funds will be used to support initiatives addressing access and infrastructure in counties with high shares of TennCare members. He cautioned that other federal provisions taking effect in 2028 will introduce limits on provider taxes and directed payments, affecting hospitals, EMS and academic physician practices.
Committee members asked staff to clarify how TennCare will use the federal funds in coordination with state shared-savings dollars and how the timing of federal guidance will affect planning.
