Florida is moving forward with a major investment in rural health care through the Rural Health Transformation Program (RHTP), a statewide initiative designed to modernize, stabilize, and sustain health systems across 31 rural counties serving approximately 1.2 million Floridians.

The program is led by the Florida Agency for Health Care Administration (AHCA) and is funded through the federal Rural Health Transformation Program administered by the Centers for Medicare & Medicaid Services (CMS). Florida will receive $209.9 million over five years, part of a $50 billion national investment to strengthen rural health care in all 50 states.

CMS announced state-by-state funding allocations on December 29, 2025. Florida’s award places it slightly above the national midpoint, with most states receiving close to $200 million over the five-year period.

Expanding Access and Stabilizing Rural Health Systems

According to AHCA, Florida’s RHTP is focused on expanding access to high-quality, affordable care while addressing longstanding challenges facing rural communities, including provider shortages, fragmented technology, and unsustainable reimbursement structures.

“Florida’s application reflects what we have heard directly from our providers, stakeholders, and rural communities about the challenges they face and the solutions they need,” AHCA Secretary Shevaun Harris said when the application was submitted. “We are laser-focused on creating a lasting impact by strengthening our workforce, driving innovation, and expanding access to care.”

The program’s overarching goal is to improve access to preventive, primary, behavioral health, chronic disease, and maternal care through a combination of new rural and satellite clinics, mobile health services, community paramedicine, tele-specialties, remote patient monitoring, and retail pharmacy clinics. Nutrition-focused Health and Lifestyle initiatives will also play a role in addressing food insecurity and reducing chronic disease in rural areas.

Investing in Technology, Workforce, and Value-Based Care

Florida’s plan places a strong emphasis on technology integration and data-driven care. RHTP funding will support expanded telehealth, telepsychiatry hubs, health information exchange connectivity, encounter notification systems, and advanced diagnostic technologies to improve care coordination and continuity.

Workforce development is another core component. Through the Clinical Training Investment Opportunity initiative, Florida aims to build a sustainable rural workforce pipeline by supporting supervised clinical rotations paired with five-year rural service commitments.

To ensure long-term financial sustainability, the program also promotes value-based payment models and integrated Medicare-Medicaid plans initiatives designed to stabilize rural hospitals and streamline billing and reimbursement for providers.

Part of a Broader Rural Health Strategy

The federal RHTP will distribute $50 billion nationwide from 2026 through 2030, with $10 billion allocated each year. CMS has said that half of the funding is distributed equally among states, while the remainder is based on factors such as rural population, the condition of state rural health systems, and the projected impact of proposed reforms.

Nationally, awards ranged from more than $280 million in Texas to approximately $147 million in New Jersey. Florida’s allocation reflects both the size of its rural population — approximately 1.2 million Floridians across 31 of the state’s 67 counties — and the breadth of its proposed reforms.

At the state level, the initiative aligns with broader legislative efforts to strengthen rural communities, including Senate President Ben Albritton’s “rural renaissance” agenda, which emphasizes improvements in health care access, education, transportation, and economic development.

Looking Ahead

Subrecipients for the Florida RHTP will be selected through a competitive procurement process. AHCA has said the program is designed to give local hospitals, clinics, and providers greater flexibility to deliver care closer to home while improving outcomes and accountability.

HCAF is closely monitoring the development and rollout of the program and will actively advocate to ensure home care providers are meaningfully included as a core component of Florida’s rural health strategy. HCAF will continue to engage with state officials and stakeholders and will provide updates to members as procurement and implementation move forward.