The Louisiana Department of Health has completed the first year of funding awards through the Louisiana Rural Health Transformation Program, directing the maximum funding allowable under federal guidelines to support rural facilities while advancing a broader strategy to improve health outcomes and strengthen rural communities across the state.
Louisiana received approximately $208 million in first-year funding through the Rural Health Transformation Program from the Centers for Medicare & Medicaid Services. Demand far exceeded available funding, with the Louisiana department of Health receiving more than $498 million in requests across 551 applications. LDH obligated 100% of the available funding across five key initiatives: workforce, technology innovation, innovative care models, Make Rural America Healthy Again, and sustainable access for rural health care facilities.
“We have a rare opportunity to transform the future of rural health care in Louisiana, and Year One proves we’re ready to seize it,” said Department of Health Secretary Bruce D. Greenstein. “We secured historic funding and committed every available dollar under federal guidelines to strengthening rural communities. Our hospital, clinic, workforce, education, technology, and community partners are all essential to creating a stronger, more sustainable rural health system. Together, we’re not just investing in rural health care today. We’re shaping a stronger, healthier rural Louisiana for decades to come.”
The Rural Health Transformation Program, established through federal legislation in 2025, provides $50 billion nationally over five budget periods to support innovative, sustainable improvements in rural health care. Louisiana’s first-year award of $208.4 million was among the highest in the nation.
While rural hospitals are essential to the health and stability of rural communities, federal program requirements establish specific limits on direct provider payments and eligible infrastructure investments. Funding must also support broader health transformation initiatives, including workforce development, technology modernization, preventive care, and innovative health care delivery models.
Louisiana has maintained a strong record of supporting rural hospitals and clinics and preserving access to care in communities where hospitals often serve as major employers and essential providers of emergency and medical services. The Rural Health Transformation Program builds on that foundation by addressing challenges that hospital payments alone cannot solve.
Among the program’s most significant long-term investments is strengthening the pipeline of nurses, allied health professionals, and other health care workers who will serve rural Louisiana.
Workforce shortages continue to challenge rural hospitals and providers, limiting access to care, and placing additional demands on existing staff. Through the Rural Health Transformation Program, LDH is investing in strategies to expand health care education and training opportunities, support students pursuing health care careers, and help rural communities recruit and retain qualified professionals.
Funding in Budget Period One will result in the addition of 235 new health care professional “seats” across five universities. These RN, LPN, APN, NP, and radiologist students will all engage in a rotation or fellowship at a rural health care facility to increase exposure to these opportunities.
Institutions such as Louisiana State University Eunice and University of Louisiana at Monroe will play an important role in advancing these goals.
With its first year of funding awards complete, LDH will continue working with hospitals, educational institutions, health care providers, community organizations, and other partners to implement projects, measure progress, and identify opportunities for continued investment.
The Department’s focus remains on maximizing available resources while ensuring that investments deliver sustainable improvements in the health care system and the communities it serves.
“Success will not be measured simply by how much money we distribute,” Greenstein said. “It will be measured by what changes because of it: more health care professionals in our communities, better access to care, stronger hospitals, and healthier people. That is the transformation Louisiana is working to deliver.”