Rural Health Transformation Program: Overview and Possible Workforce Development Opportunities
The Rural Health Transformation Program (RHTP) represents a significant new federal investment aimed at strengthening rural healthcare systems and improving access to care in underserved communities. Administered by the Centers for Medicare & Medicaid Services (CMS), the program will provide $50 billion in funding to states over five years to support state-led strategies to address persistent challenges in rural healthcare delivery.
While the program is broad in scope, workforce development is a key strategic goal, and recruiting and retaining clinical workforce talent in rural areas is an allowable use of funds. As states develop and operationalize their plans, the program may provide opportunities to expand clinical training capacity for PA programs and other health professions and to strengthen the healthcare workforce pipeline nationwide.
Program Overview
Under the Rural Health Transformation Program, each state develops and implements its own transformation plan based on local needs and priorities. Funds may be used to support initiatives such as:
- Supporting workforce recruitment, retention, and training
- Advancing care delivery models that improve coordination and sustainability
- Improving access to care by bringing services closer to home and supporting local health systems
CMS has emphasized flexibility in program design, allowing states to target investments toward strategies that stabilize rural health systems while addressing long-standing workforce shortages.
Workforce Development and State Approaches
Many states have identified workforce development as a priority within their RHTP strategies. For example:
- Utah will implement seven integrated initiatives in collaboration with state, local, tribal, and community partners. Its Rural Incentive and Skill Expansion (RISE) initiative will strengthen the rural workforce through early and alternative career pathways, education, training, and structured provider incentives.
- Hawaii proposed a pipeline initiative expanding education, recruitment and retention of healthcare workers across rural Hawaii through certificate programs, residencies, loan repayment, scholarships, and mentoring.
- Idaho’s workforce initiative focuses on a comprehensive rural workforce strategy that leverages financial incentives, training pathways, and community support to build and sustain a skilled rural health workforce—including ladder payments for recruitment, retention, and postgraduate scholarships; healthcare career exploration and advancement programs; work-based learning; and graduate medical education programs including fellowships and residencies.
- In Arkansas, the proposed Recruitment Innovation Skills and Education for Arkansas (RISE AR) initiative will invest in leadership training, expanding residency, preceptorship, and other training programs for healthcare professionals, recruitment and retention incentives, professional development programs, and tele-education infrastructure to strengthen the rural healthcare workforce.
- Louisiana’s workforce development strategy centers around a Rural Clinician Credit Bank, targeted tax-credit incentives for high-need parishes, and education partnerships spanning from middle school career programs through clinical training.
State Implementation and Possible Opportunities for Engagement
Because RHTP funds are administered at the state level, the implementation process will vary between states; however, early engagement with health system partners, state program administrators, and other key state and local stakeholders is critical to ensure that the voices of PA programs and educators are heard. As states move forward with the implementation of their RHTP plans, PAEA is committed to highlighting opportunities for collaboration to meet programs’ core challenges, particularly shortages of clinical training sites and preceptors.
The RHTP represents a significant opportunity for states to invest in training pathways and other workforce development opportunities that prepare clinicians to meet rural health needs, build the healthcare workforce pipeline, and improve access to care. PAEA supports policies that strengthen the healthcare workforce in rural communities and encourages programs to explore opportunities for collaboration that advance PA education and support sustainable rural healthcare delivery.
Learn More
For more information, please refer to the additional resources section below or contact Chief Policy Officer, Tyler Smith at tsmith@PAEAonline.org or State Advocacy and External Affairs Manager, Lizeth Zardeneta at lzardeneta@PAEAonline.org.
Additional Resources
