By SPEAKIN’ OUT NEWS
MONTGOMERY — Alabama could receive at least $500 million over five years to strengthen rural health care if state leaders submit a successful application to the new Rural Health Transformation Program by Nov. 5.
The $50 billion federal initiative, created in the Republican tax and spending law, is designed to soften the blow of deep Medicaid cuts set to begin in 2028. Alabama’s share would be distributed evenly from 2026 to 2030, with additional funding possible based on need and policy design.
Weekly Planning Underway
Gov. Kay Ivey appointed the State Health Planning and Development Agency to lead Alabama’s proposal, supported by a working group of health leaders meeting every Friday. The group is considering priorities such as telehealth, chronic disease management, and workforce recruitment.
Dr. Scott Harris, the state health officer, said the Alabama Department of Public Health is especially interested in tackling diabetes and cardiovascular disease while expanding telehealth services.
“It’s useful. It’s welcomed,” Harris said. “But it’s certainly not going to make up for the cuts in other areas.”
Workforce and Maternal Health Needs
The Alabama Hospital Association is pushing for investments in labor and delivery services and programs to reduce maternal and infant mortality rates. Association president Danne Howard said workforce shortages and financial stress on rural hospitals remain pressing challenges.
The Medical Association of the State of Alabama supports directing funds toward workforce incentives, such as a loan forgiveness program that helps doctors pay off medical school debt if they practice in rural areas.
A Temporary Boost
While health leaders see the program as an opportunity to improve care in underserved communities, they stress the funding is temporary.
“This is an opportunity to start a pathway that will address things long term,” Howard said. “But no one should be disillusioned that these issues will be fixed in five years.”