Rural Health Transformation Program Update 

The Rural Health Transformation Program (RHTP) has entered its implementation phase, creating opportunities for PA programs to collaborate with rural health systems, state agencies, and community partners to address their clinical education needs. With $50 billion in federal funding allocated to states over five years, the program aims to strengthen rural health care delivery, improve access to health services, modernize infrastructure, and recruit, train, and retain the health care workforce needed to serve rural and underserved communities. Following initial application submissions and CMS’s distribution of first-year funding to all 50 states, states have shifted focus to opening funding opportunities and awarding funds for initiatives that align with the program’s goals, including workforce development efforts.  

For PA programs, these investments could help address longstanding challenges in clinical education, including preceptor shortages, limited clinical rotation availability, and sustainable partnerships with health care employers and rural clinical sites. As states begin operationalizing their plans, PA educators and institutional leaders have an opportunity to engage with state-decision makers, program administrators, and other stakeholders to demonstrate how PA education can contribute to both immediate workforce needs and long-term rural health care capacity.  

First-Year Implementation Phase  

Recent announcements illustrate how implementation is moving beyond the initial planning phase. Because recruiting, retaining, and training clinical professionals in rural areas are allowable uses of funds, several states have begun investing in initiatives designed to strengthen rural health care workforce pipelines. Some examples include:  

• Maryland: In October, the Centers for Medicare and Medicaid Services (CMS) announced $16.4 million in RHTP investments focused on rural health workforce training and retention. Initiatives included reducing financial barriers to training and certification, preparing students for health careers, and supporting recruitment and retention of PAs and other healthcare professionals.  

• Arkansas: In September, CMS announced $54.6 million for 54 projects addressing rural health needs. Of that amount, $27.2 million supports workforce recruitment, training, and retention, including rural clinical training programs and new health care workforce pipelines.  

• South Carolina: In September, the state announced 228 one-time grants totaling approximately $167.3 million in first-year investments. The selected projects include workforce-focused initiatives, training programs, facility enhancements, and efforts to expand access to care. 

• West Virginia: In September, CMS announced $4.8 million in investments, including a recruitment and relocation initiative designed to address rural health workforce shortages.  

Additionally, some states including Utah and Minnesota are exploring pathways to expand rural clinical training experiences. For example, the Minnesota Department of Health launched the RHTP Rural Clinical Rotations Expansion Grant Program to help eligible health professions programs add or expand clinical rotations in rural communities. Utah’s Rural Clinical Preceptor Stipend Program, meanwhile, addresses preceptor capacity and supports the sustainability of rural clinical training. These examples illustrate the range of state approaches to rural workforce development. Although not every initiative will directly support PA education, the emphasis on training, recruitment, and retention may create opportunities for PA programs to develop and expand partnerships aligned with state priorities.  

Looking Ahead 

The RHTP offers an important opportunity to shape the future of rural health care. As states continue implementing their plans, incorporating stakeholder feedback, and launching collaborative funding opportunities, PA programs have an opportunity to become valuable partners in addressing workforce shortages and improving access to care. By engaging with state and local stakeholders, PA programs can help translate these investments into meaningful outcomes that strengthen clinical education partnerships, create pathways connecting students with rural communities, and support preceptors. Furthermore, continued engagement with state leaders, program administrators, rural health employers, and academic partners is important as funding priorities, allowable uses, and applicant eligibility vary by state. Programs can review their state’s RHTP plan, contact the state agency coordinating implementation, sign-up for their state’s RHTP newsletter, if available, to receive information about upcoming funding opportunities and external engagement opportunities, and identify local gaps in clinical placements, preceptor capacity, and workforce needs and share data that can help inform future decision-making. 

As always, PAEA is committed to highlighting opportunities for collaboration to meet programs’ core challenges, particularly shortages of clinical training sites and preceptors. PAEA has developed a RHTP resource document with state contacts and additional information to help PA programs learn more about the RHTP and connect with state leaders. We encourage programs to review these resources to learn more about your state’s priorities, connect with relevant agencies, and explore opportunities to strengthen rural clinical training and workforce development partnerships. For more information, please contact Chief Policy Officer, Tyler Smith at tsmith@PAEAonline.org or State Advocacy and External Affairs Manager, Lizeth Zardeneta at lzardeneta@PAEAonline.org.