Illinois awarded $193 million to expand healthcare access in rural areas

Illinois awarded $193 million to expand healthcare access in rural areas

Amid federal budget cuts to rural healthcare, Illinois will steward funds to support the state’s rural healthcare infrastructure and drive sustainable change in underserved rural communities

Illinois has been awarded $193,418,216 million per year for five years through the $50 billion federal Rural Healthcare Transformation Program (RHTP) fund, which will be utilized to expand equitable access to healthcare and to eliminate barriers to care that many residents of rural communities face. All 50 states applied for the RHTP funding, and a total of $10 billion will be available each year over five years, beginning in fiscal year 2026.

While this funding will provide support to improve healthcare access in rural Illinois communities, it will be far from enough to counteract the cuts imposed to the Medicaid program through various provisions in the Trump Administration’s budget bill. According to an estimate from KFF, the Trump Administration's budget bill is expected to cut $137 billion from rural healthcare providers nationally, nearly three times the $50 billion allocated in the fund.

The Illinois Department of Healthcare and Family Services (HFS), in strategic partnership with its sister agencies and interested parties, utilized the federal Centers for Medicare & Medicaid’s (CMS) five strategic goals from the RHTP Notice of Funding Opportunity (NOFO), to develop a comprehensive plan to strengthen Illinois’ rural healthcare system for the future. The plan outlines a vision built on three key categories of initiatives designed to incentivize health system transformation and create regional partnerships, increase the use of technology and mobile health services, and expand the rural healthcare workforce within the state.

Specifically, Illinois’ application supports the following:

• Transforming Rural Healthcare Delivery: Incentivize hospital and health provider transformation initiatives, including the establishment of regional health care partnerships, service line transformation, population health management, and value-based care.

• Overcoming Geographic Barriers of Care: Create opportunities for individuals in rural settings to receive appropriate access to services, including specialty care, while remaining in their communities through the deployment of mobile and telehealth services and by strengthening emergency response systems.

• Building a Resilient Rural Healthcare Workforce: Address urgent gaps in the rural healthcare workforce by offering access to scholarship, training, apprenticeship, and incentive programs through the state’s university and community college systems and in partnership with rural healthcare employers across the state.

Roughly 1.9 million people, or 15% of Illinois’ population, live in rural areas of the state. RHTP funding will be directed to entities that serve these individuals in rural census tracts across Illinois. Eighty-five counties, or more than two thirds of the counties in the state, include these types of census tracts as designated by the federal Health Resources and Services Administration (HRSA). Within this framework, particular attention will be paid to sub-populations, such as individuals living with chronic disease and those with mental health conditions.

Each initiative category has been informed by significant engagement with the rural health provider community. During the application process, HFS consulted with six key stakeholder groups to identify challenges and shape proposed initiatives. Engagement spanned nine state agencies, over 20 provider associations, as well as discussions with rural hospitals, community health centers, CMHCs, universities and community colleges, legislators, and vendors.

Value-based payment initiatives, hospital transformation grants, and practice transformation through team-based care will all be tools to strengthen hospital and provider partnerships. Infrastructure investments in emergency medical services, mobile health, and mobile crisis units will help overcome geographic barriers that can affect rural residents’ ability to access to care. Further, foundational investments like scholarships, university program expansion, expansion of community college programming, and regional training and certification programs will assist with the construction of a resilient rural workforce.

The goal of this funding distribution is to work towards improving health outcomes for all Illinois residents. Individuals living in rural areas often face worse health outcomes due to structural barriers that prevent them from being able to access the critical healthcare services they need. These communities have higher rates of many conditions including hypertension, diabetes, and infant and maternal mortality rates.

"Illinois is fortunate to have innovative rural leaders working to improve the health of their communities,” said IDPH Director Dr. Sameer Vohra. “This federal funding will help support the health of residents across the state by investing in programs that expand partnerships, strengthen technological innovation, and build a more resilient health workforce. IDPH is proud to work with HFS, hospitals, providers, and community partners to ensure these resources create a lasting impact."

“Rural hospitals are essential to the health and economic vitality of communities across Illinois,” said Tracy Warner, Executive Director, ICAHN. “Through this initiative, ICAHN—working in partnership with the State and rural hospitals—is advancing innovation and technology, strengthening the health care workforce, and supporting local economies to build sustainable models of care that keep high-quality services close to home.”

HFS will continue engaging with stakeholders on next steps regarding funding distribution. Staff planning and implementation are underway in partnership with other state agencies as well as with federal CMS.

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