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Committee begins detailed review of administration's Rural Health Transformation plan funded by ARPA
Summary
The committee opened a detailed review of the Rural Health Transformation proposal (ARPA/TennCare shared savings funds), including five broad goals through 2030 and program‑level initiatives; administration officials warned that some federal funds are competitive and a first‑year clawback scenario cited by the administration could be about $8,430,000 if benchmarks are not met.
Administration officials began a two‑week review of the Rural Health Transformation proposal that uses ARPA and TennCare shared‑savings funds to support rural infrastructure, maternal and infant care, chronic‑disease initiatives, connectivity/technology and workforce development. The administration described roughly $250–300 million already deployed and said the application supports roughly 110 projects across the state.
Michael Hendricks, the governor’s policy director, told the committee the federal process is competitive and that some portion of additional funds depends on policy benchmarks and other states’ performance. He described a potential first‑year clawback scenario: "The clawback, proposed again as a baseline for the 1st year if we do not follow suit on policy objectives would be $8,430,000," Hendricks said. Members asked for itemized project lists and more detail about sustainability, reporting and which pieces of enabling state legislation the administration considers prerequisites to retain federal competitiveness.
