Florida’s rural hospitals are set to receive a major boost following the federal government’s announcement last week that the state will receive a $209 million award through the Rural Health Transformation Program (RHTP) for fiscal year 2026.
The Florida Hospital Association (FHA) applauded the award earlier this week, calling it the largest single federal investment in rural health care in the state’s history. The program is designed to improve access to care, modernize technology, strengthen the health care workforce, and drive innovation across Florida’s rural communities.
“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 the Florida Hospital Association. “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.”
Florida is a major beneficiary of the nationwide effort to improve rural health care delivery. The RHTP will distribute a total of $50 billion nationally — $10 billion annually from 2026 through 2030 — to states approved for participation, according to the Centers for Medicare and Medicaid Services. Florida’s $209 million award represents the first tranche of funding under the five-year grant program.
The RHTP was established under the One Big Beautiful Bill, which was signed into law on July 4, 2025. FHA cited its collaboration with a broad group of stakeholders to produce more than 60 pages of data analysis and recommendations for the Florida Agency for Health Care Administration (AHCA) to consider as part of its application for federal funds.
AHCA is expected to seek legislative approval to expend the awarded funds. Once approved, the agency will issue a Request for Application, allowing regional collaboratives across the state to submit grant proposals in the coming months.
Florida’s rural hospitals continue to face significant challenges, including rising costs and low occupancy rates. Ensuring their long-term viability and preserving timely access to care for rural residents remain top priorities for FHA. Over the past 20 years, five rural hospitals in Florida have closed, and three others have transitioned to emergency- or urgent-care-only facilities.
“Floridians deserve timely access to quality care, no matter where they live,” Mayhew said. “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.”
