Health Systems Direct Rural Transformation Funds to AI, Telehealth
Becker's Hospital Review compiles state and health system announcements showing how 12 rural hospital systems are spending Rural Health Transformation Program awards ahead of states' Oct. 30 deadline to obligate first-year funds. The five-year, $50 billion CMS program, created under HR 1, gives states broad discretion over spending, and a CMS report on funds obligated through July 31 shows large sums going to technology: Missouri committed $24.4 million to EHR upgrades and $4.2 million to ambient AI, while Mississippi set aside $47.5 million for a rural provider technology grant program. Individual systems including Ascension, Baptist Health, Mercy, Ochsner and Vandalia Health are using awards ranging from roughly $150,000 to $9.6 million for AI-enabled virtual care, remote patient monitoring, smart rooms, telehealth hubs and EHR modernization. Project details come from state and system announcements and may change before grant agreements finalize.