Becker’s Healthcare Podcast Krista Drobac of Health Policy Futures Lab on the Rural Health Transformation Program
Feb 12, 2026
Krista Drobac, co-founder of Health Policy Futures Lab and former CMS/state policy leader, discusses the $50B Rural Health Transformation Program. She breaks down the program’s 11 funding buckets. She highlights innovations like mobile units, community paramedicine, remote monitoring and hub-and-spoke models. She outlines what hospitals should expect as states issue RFPs and ramp up activity into 2026.
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$50B Five-Year State-Led Fund
- The Rural Health Transformation Fund is a $50 billion, five-year state-directed program administered by CMS.
- States apply once and receive about $10 billion per year to invest in sustainable rural care innovations.
Eleven Flexible Investment Buckets
- States chose among 11 eligible use 'buckets' and had to select at least three for their plans.
- Buckets include workforce, non-billable clinical services, tech/data, EMS, capital, prevention, partnerships, Medicaid incentives, consumer engagement, and innovation models.
No Duplication Of Billable Services
- Clinical services funded cannot duplicate services already billed to Medicare/Medicaid, forcing creative program design.
- This limitation pushed states toward novel approaches like partnerships and community-enabled services.