North Carolina secures $213M to enhance rural health care access and innovation

The State of North Carolina has been awarded $213 million through the Rural Health Transformation Program (RHTP) by the Federal Centers for Medicare and Medicaid. These funds will improve health care access for North Carolinians living in rural areas. North Carolina submitted its application in November for these funds with bipartisan support from the state’s congressional delegation. These funds are awarded for 2026, and North Carolina will be eligible for more funding each year for the next five years, according to Governor Stein’s Office.

North Carolina has long been a leader in advancing rural health care solutions, and we are excited about how this new program can support innovations to help make rural communities healthier,” said Governor Josh Stein. “Our state’s rural communities are wonderful places to live and raise a family but face unique health care challenges. This grant will connect more people to more high-quality health care.

NCDHHS worked in developing the state’s plan through engagement with more than 420 stakeholders. This included the following:

• Rural hospitals
• Community health centers
• Local health departments
• Tribal communities
• Community-based organizations
• Faith-based organizations

We look forward to continuing the collaborative effort needed to make sure everyone has access to affordable, high-quality, patient-centered health care while reducing the burden on rural health providers,” said NC Health and Human Services Secretary Dev Sangvai. “The North Carolina Rural Health Transformation Program is one part of our efforts to support the more than 3 million people in North Carolina who live in rural communities.

North Carolina has the second-largest rural population in the country, second only to Texas. The rural population of North Carolina represents more than 5 percent of the entire U.S. rural population. North Carolina’s Rural Health Transformation Program outlines six key strategies to transform rural health care systems over the next five years.

These strategies include:

• Launching locally governed “NC ROOTS” hubs to connect medical, mental health and social supports
• Expanding prevention, chronic disease management, maternal health, and nutrition programs
• Increasing access to mental health services, including substance use disorder treatment
• Investing in the rural health care workforce
• Supporting more rural providers in transitioning to value-based care models, where providers are paid based on keeping people healthy and out of the hospital rather than on how many services are provided
• Enhancing technology in health care through artificial intelligence and expanded broadband access

On January 16, 2026, NCDHHS leaders will hold a virtual event to highlight the NC RHTP goals and next steps, the program’s statewide impact, and the importance of federal partnership in addressing root causes of disease. The overall goal for the first year of the NC RHTP is to expand the reach of existing statewide efforts that align with RHTP initiatives as North Carolina works to set up strong foundations for long-term sustainability. NCDHHS will share more information about the event in the coming weeks, according to Governor Stein’s office.

Congressman said the following in a release sent to News 12 regarding the $213 million award:

The Centers for Medicare & Medicaid Services’ North Carolina Rural Health Transformation Program award is vital for improving health outcomes for rural North Carolina families,” said Congressman Davis.