Hoeven: Full Year-One Rural Health Transformation Funding Has Been Obligated; Year-Two Funding Expected Soon from CMS

BISMARCK, N.D. – Senator John Hoeven today convened a roundtable with U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. and North Dakota health care leaders to advance the state’s Rural Health Transformation Program (RHTP), among other priorities. Hoeven invited Kennedy to visit the state to hear firsthand from health care providers on how to best ensure robust health care access and build a Continuum of Care across the entire state , both in urban and rural communities. The meeting included officials from the North Dakota Department of Health and Human Services (NDHHS), hospital leaders with facilities in both rural and urban communities, community health centers and long-term care (LTC) providers. In particular, Hoeven stressed the importance of ensuring an effective partnership between the NDHHS, HHS and health care providers as the 5-year RHTP is implemented and discussed the following updates regarding the program: NDHHS has now obligated the full $198 million year-one funding . As of August, North Dakota has already unveiled nearly $60 million in programs and funding opportunities to transform rural health care: $40 million dedicated to clinical equipment upgrades. $10 million to stabilize and improve health care workforce retention. $1.5 million to support mobile mammography services. The bulk of the remaining funding will be awarded to the North Dakota Center for Rural Health , which will manage awards to sub-grantees. The full year-two funding is expected to be awarded soon by the Centers for Medicare and Medicaid Services (CMS). While funding amounts for year two are still being finalized, the state is on track to maintain the level of funding it received in the program’s first year. Provided the state meets the milestones outlined in its application and fully expends funds within the allowable period, North Dakota will receive up to $1 billion over the five years of the program. Hoeven also outlined efforts to provide regulatory relief for North Dakota long-term care providers . Hoeven has been working to address burdensome federal regulations that disadvantage facilities in rural communities and threaten the viability of their operations. “North Dakota has hit an exciting milestone with the Rural Health Transformation Program, as the nearly $200 million year-one funding has been fully obligated and the year-two funding is on it ways from CMS,” said Hoeven. “This meeting is an important opportunity to ensure our efforts to build a Continuum of Care across the state stay on track, so North Dakota will continue to maintain its funding level over the five years of the program, providing up to $1 billion to strengthen our rural health care system. We appreciate Secretary Kennedy for accepting our invitation to visit the state and meet with our health care leaders to not only keep this priority moving forward, but also advance efforts to provide regulatory relief for our long-term care providers and help ensure access to this critical service, particularly in our rural communities.” Transforming Rural Health Care Hoeven worked to establish the RHTP through the passage of the Working Families Tax Cut Act and supported Governor Armstrong and his team in putting forward a strong application. The state was awarded $200 million for the program’s first year, which is twice the program’s baseline. The senator stressed that this success comes as a result of the state: Investing in statewide fiber optic infrastructure. Building a network of new, state-of-the-art critical access hospitals (CAHs). Leveraging both telehealth and CAHs to recruit and retain health care professionals and provide access to a comprehensive continuum of care. Providing Regulatory Relief for Long-Term Care In December, the Trump administration repealed a Biden-era rule imposing unworkable minimum staffing mandates on long-term care (LTC) facilities. Hoeven opposed the rule when it was first proposed by CMS in 2023, having: Pressed the Biden administration to rescind the rule. In a letter sent with a bipartisan group of his Senate colleagues, Hoeven stressed that the one-size-fits-all approach would force many rural LTC facilities to close their doors. Helped introduce a Congressional Review Act (CRA) resolution of disapproval, sponsored by Senator James Lankford (R-Okla.), to rescind the rule. Supported a 10-year moratorium on the CMS rule, which passed as part of the Working Families Tax Cut Act. This builds on Hoeven’s efforts to enable more health care facilities, including LTC providers, to serve veterans. Specifically, Hoeven is working to advance a permanent exemption from burdensome and duplicative mandates under the U.S. Department of Labor (DoL) Office of Federal Contract Compliance Programs (OFCCP), which come in addition to CMS standards and reviews. The OFCCP rules limit providers’ ability to contract with the VA and make it more difficult for veterans to receive health care in their home communities. Hoeven previously secured a moratorium on the OFCCP regulations in 2020, following his efforts with the VA and the DoL under the Trump administration. Hoeven has consistently secured extensions for the exemption until a permanent solution can be put in place. -###-