The federal government last week announced that Florida has been awarded more than $209 million for FY 2026 from the Rural Health Transformation Program (RHTP) to strengthen rural health care in our state. The Florida Hospital Association (FHA), which had advocated for the funding, praised the federal government’s major investment in Florida, celebrating its impact on communities across the Sunshine State.
“Florida’s rural hospitals are lifelines in their communities, providing access to care for the families who live in rural areas,” said Mary C. Mayhew, president and CEO of FHA. “This critical funding not only sustains these essential lifelines but strengthens them. By building a stronger workforce, implementing modern technologies and establishing collaborative partnerships across rural care providers, we can better meet the needs of every community from the Panhandle to the Glades.”
Facing rising costs and low occupancy, five of Florida’s rural hospitals have closed during the last 20 years, and three have converted to emergency or urgent care. The long-term viability of rural hospitals is a serious concern and a top priority of the Florida Hospital Association, given the important role they play in providing access to timely care.
When the federal government created the Rural Health Transformation Program as part of the One Big Beautiful Bill, signed on July 4, 2025, FHA partnered with other stakeholders to develop coordinated feedback for Florida’s Agency for Health Care Administration (AHCA) to consider as part of its application development. More than 60 pages of data, analysis, and recommendations were ultimately provided to assist the agency in its work.
“Floridians deserve timely access to quality care, no matter where they live,” said Mayhew. “The Rural Health Transformation Program provides a comprehensive framework and an influx of resources to ensure rural residents are not left behind as Florida’s health care system evolves.”
The $209 million awarded for FY 2026 represents the single largest federal investment in rural health care in Florida. This award is the first of the five-year grant program, which is funded by $10 billion annually for a total of $50 billion in national appropriation dollars.
Florida’s three primary focus areas for RHTP funding are:
1. Improving access to care
2. Strengthening the health care workforce
3. Advancing health care innovation
AHCA will seek appropriation from the Legislature in order to expend the funds awarded. As that process develops and AHCA begins to implement the awarded funds, FHA will continue to advocate for Florida’s rural hospitals to ensure the funds invested yield the greatest return for Florida’s rural communities.
