Iowa first in nation to award Rural Health Transformation funds for Healthy Hometowns

DES MOINES — Gov. Kim Reynolds and the Iowa Department of Health and Human Services (Iowa HHS) announced the state’s intent to award more than $78.6 million in federal funding through two competitive Requests for Proposals as part of the Iowa Healthy Hometowns Project.

The project is funded through the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation Program. State officials say Iowa received $209 million for the first year of the federal program and is the first state in the nation to award funding for its project initiatives.

“These investments represent a major step forward in ensuring that rural Iowans have access to high-quality health care services and providers,” Reynolds said. “Through Iowa’s Rural Health Transformation Program, Healthy Hometowns, we are building stronger, healthier communities across the state.”

First awards support “Hometown Connections”

The initial grants support Hometown Connections, an initiative within Healthy Hometowns focused on building partnerships to restructure healthcare delivery options for rural communities. Funding will help pay for medical equipment procurement and installation and for healthcare workforce recruitment. Iowa HHS said additional RFPs tied to other Healthy Hometowns initiatives are expected in the future.

Medical Equipment Procurement and Installation (RFP #PHTHORC26009)

This award supports rural organizations in Iowa purchasing and installing essential medical equipment, including minor renovations when needed. The goal is to add new services not currently available in rural areas and strengthen long-term access to high-quality care.

• Estimated total award amount: $66,002,161.76

• Examples of equipment funded:

  • Imaging systems: MRI units, CT scanners, PET/CT systems, nuclear imaging (SPECT), digital X-ray systems and a digital mammography unit

  • Robotic surgical systems: da Vinci 5 systems (single and dual console), Mako Robotic-Arm Assisted Surgical System, Ion Robotic Bronchoscopy System

  • Other advanced equipment: linear accelerator for radiation therapy, Olympus endoscopy system

Iowa HHS said a full list of awardees is posted on its website.

Health Care Workforce Recruitment (RFP #PHTHORC26010)

This award helps rural healthcare organizations recruit providers by offering incentives such as recruitment bonuses, relocation assistance and other supports designed to make rural practice more sustainable. Providers funded through the program will deliver in-person, full-time care in rural Iowa communities.

• Estimated total award amount: $12,600,000

• Examples of positions funded:

  • Physicians: family medicine, internal medicine, pediatrics, emergency medicine, OB/GYN, psychiatry, general surgery, cardiology

  • Advanced practice providers: nurse practitioners, certified nurse midwives, certified registered nurse anesthetists

  • Physician assistants: primary care, pediatrics, surgical specialties

  • Registered nurses: clinical, OB, oncology, emergency department and other specialty roles

  • Specialty providers: radiology and behavioral health

Iowa HHS said a full list of awardees is posted on its website.

Funding note

Iowa’s Rural Health Transformation Program, Healthy Hometowns, is supported by CMS under the U.S. Department of Health and Human Services as financial assistance awards totaling $66,002,161.76 and $12,600,000, funded 100% by CMS/HHS, the state said.

More information about Hometown Connections is available on the Iowa Healthy Hometowns Project webpage.