CMS Prioritizes Home-Based Care in $50 Billion Rural Funding Program: Alliance Advocates for Increased Support and Implementation. Enhancing Home-Based Care Solutions in Rural Areas: CMS’s $50 Billion Funding Program Under Spotlight by Advocacy Group

October 25, 2025

Washington D.C. – The United States Centers for Medicare and Medicaid Services (CMS) has designated $50 billion to revitalize healthcare options in rural areas,triggering a wave of advocacy for increased investment in in-home healthcare services. Industry leaders assert that bolstering home-based care is crucial for sustaining access and improving health outcomes in these underserved communities.

The Push for prioritized Funding

The national Alliance for Care at Home recently communicated its recommendations directly to CMS Administrator Dr. Mehmet Oz, emphasizing the pivotal role of Home-Based Care within the Rural Health Conversion Program (RHTP). the Alliance views in-home services not merely as a component, but as a foundational pillar supporting sustained rural health access. Dr. Steven Landers, CEO of the Alliance, highlighted the vital function these agencies play, especially as hospitals and clinics grapple with closures and service reductions.

“In-home care providers frequently represent the sole consistent source of clinical and supportive services for elderly individuals and those facing chronic or serious illnesses,” Dr. Landers stated. “They are instrumental in facilitating safe hospital discharges, mitigating preventable readmissions, managing chronic conditions, and providing compassionate end-of-life support.”

Addressing Systemic Challenges

The RHTP, a key element of the broader “One Big Stunning Bill” (OBBB), aims to elevate healthcare outcomes and accessibility throughout rural America. However, providers operating in these areas face significant headwinds. Declining Medicare reimbursements, Medicaid payment obstacles, workforce shortages, and mounting administrative burdens all contribute to financial instability for many rural agencies.

David Totaro, President and Executive Director of Hearts for Home Care, BayadaS advocacy organization, recently commented that prioritizing home healthcare is essential, particularly as hospitals and nursing homes in rural locations struggle due to lack of funding. He further noted collaborative efforts with industry partners to ensure legislators consider home care when distributing the Rural Health Fund.

Partnerships and Innovative Solutions

The RHTP also fosters collaborative opportunities. David Kerns, CEO of LTM Group, pointed to the potential for home health agencies to forge partnerships with health systems and state organizations to establish alternative payment models. This could involve combining in-person visits with chronic care management, virtual care, and care navigation, thereby overcoming traditional barriers within rural hospitals.

Here’s a comparison of traditional healthcare models versus home-based care in rural settings:

Feature	Traditional Healthcare	Home-Based Care
Accessibility	Limited by location and transportation	Increased accessibility, removes transportation barriers
Cost	Potentially higher due to hospital stays	Cost-effective, reduces hospitalizations
Continuity of Care	Can be fragmented	Improved continuity and coordination
patient Satisfaction	Variable	Generally higher due to personalized care

Did You Know? According to the National Rural Health Association, over 60 million Americans live in rural areas, facing unique healthcare challenges like limited access to specialists and longer travel times for care.

The Alliance believes strengthening access to home-based services will ultimately reduce avoidable hospitalizations, enhance outcomes for individuals with chronic and serious illnesses, and provide valuable support to family caregivers – all while keeping healthcare resources within rural communities. Evidence consistently demonstrates that home-based care not only improves quality of life but also lowers overall healthcare costs, establishing it as a cornerstone of long-term, enduring rural health transformation.

The Future of Rural Healthcare

The ongoing challenges facing rural healthcare are multifaceted, including an aging population, economic factors, and limited infrastructure.Investing in home-based care represents a proactive approach to mitigating these issues, offering a more sustainable and patient-centered model. As telehealth and remote monitoring technologies continue to advance,the potential for expanding access to quality care in rural areas will only increase. Furthermore, focusing on preventative care within the home setting can substantially reduce the burden on already strained rural healthcare facilities.

Pro Tip: Individuals living in rural areas should proactively explore home healthcare options and advocate for policies that support increased access to these vital services.

Frequently Asked Questions About Rural Healthcare and Home-Based Care

1. What is the Rural Health transformation Program? the RHTP is a CMS initiative designed to improve healthcare access and outcomes in rural communities through increased funding and innovative approaches.
2. why is home-based care significant for rural areas? Home-based care addresses transportation barriers, provides continuity of care, and reduces the strain on rural hospitals and emergency departments.
3. What challenges do rural home health agencies face? They contend with declining reimbursements, workforce shortages, and escalating administrative requirements.
4. How can partnerships help improve rural healthcare? Collaboration between home health agencies, health systems, and state organizations can lead to innovative payment models and improved care coordination.
5. What are the benefits of investing in home-based care? It lowers healthcare costs,enhances patient outcomes,and supports family caregivers.
6. What is the “One Big Beautiful Bill”? The “One Big Beautiful Bill” (OBBB) is the legislative package encompassing the Rural Health Transformation Program and other healthcare initiatives.
7. How does telehealth factor into improving rural care? Telehealth expands access to specialist care and remote monitoring, overcoming geographical barriers.

What are your thoughts on the allocation of these funds? How can we ensure equitable access to healthcare in all communities?

How can streamlined grant application processes and technical assistance support rural providers in accessing CMS funding for home-based care?

CMS Prioritizes Home-Based Care in $50 Billion Rural Funding Program: Alliance advocates for Increased Support and Implementation

Understanding the $50 Billion Investment in Rural Healthcare

The Centers for Medicare & Medicaid Services (CMS) is making a significant commitment to improving healthcare access in rural communities with a $50 billion funding program. A core focus of this initiative is bolstering home-based care (HBC) solutions, recognizing its potential to address unique challenges faced by rural populations. This investment isn’t just about dollars; it’s a strategic shift towards patient-centered care, aiming to reduce hospital readmissions, lower healthcare costs, and improve overall health outcomes in underserved areas. Key areas of funding include telehealth infrastructure, workforce development for rural home health, and expansion of community-based care models.

The Role of Advocacy Groups: The Alliance Leading the charge

Organizations like the Alliance of Community Health Plans (ACHP) are actively advocating for increased support and effective implementation of this CMS funding. Their efforts center around ensuring the funds are strategically allocated to maximize impact. The Alliance emphasizes the need for:

* Streamlined Grant Application Processes: Reducing administrative burdens for rural providers seeking funding.

* Technical assistance: Providing resources to help rural healthcare organizations navigate the application and implementation phases.

* Data-Driven Decision Making: Utilizing data to identify areas of greatest need and track the effectiveness of funded programs.

* Increased Flexibility: Allowing for tailored solutions that address the specific needs of individual rural communities.

This advocacy is crucial for translating the promise of the $50 billion into tangible improvements in rural healthcare access.

Enhancing Home-Based Care Solutions: What Does This Look Like?

The expansion of home healthcare services within this funding program encompasses a variety of approaches:

* Mobile integrated Healthcare (MIH): Utilizing paramedics and other allied health professionals to provide in-home care,preventative services,and chronic disease management.

* Remote Patient Monitoring (RPM): Leveraging technology to remotely monitor patients’ vital signs and health data, enabling early intervention and reducing the need for hospital visits. This includes devices for monitoring blood pressure, glucose levels, and heart rate.

* Hospital-at-Home Programs: Bringing hospital-level care directly to patients’ homes, offering a more cozy and convenient alternative to traditional hospitalization.

* Expansion of Home Health Agencies: Increasing the capacity of existing home health agencies and supporting the establishment of new agencies in underserved areas.

* Caregiver Support: Providing resources and training for family caregivers, who play a vital role in supporting patients receiving home-based primary care.

Benefits of Prioritizing Home-Based Care in Rural Areas

The benefits of this CMS initiative extend far beyond simply increasing access to care.

* Improved Patient Outcomes: Home healthcare frequently enough leads to better management of chronic conditions and reduced hospital readmission rates.

* Reduced Healthcare Costs: HBC is generally more cost-effective than traditional hospital care.

* Increased Patient Satisfaction: Patients often prefer receiving care in the comfort of their own homes.

* Economic Development: Expanding rural healthcare jobs through HBC creates employment opportunities in these communities.

* Addressing Social Determinants of Health: HBC providers can address social factors impacting health, such as food insecurity and transportation barriers.

Navigating the Funding Application Process: A practical Guide

For rural healthcare providers interested in accessing these funds, here’s a breakdown of key steps:

1. Identify Relevant funding Opportunities: CMS regularly publishes funding announcements on its website (https://www.cms.gov/).
2. Review Eligibility Requirements: Carefully assess whether your organization meets the criteria for each funding possibility.
3. Develop a Strong Proposal: Clearly articulate your project’s goals, objectives, and expected outcomes. Highlight how your project aligns with CMS’s priorities for rural health.
4. Gather Supporting Documentation: Prepare all required documentation, including financial statements, organizational charts, and letters of support.
5. Submit Your Application on Time: Pay close attention to application deadlines and ensure your submission is complete and accurate.

real-World Example: Telehealth Expansion in Montana

Montana, a state with vast distances and limited healthcare resources, has successfully leveraged telehealth to expand access to care in rural areas. A recent CMS grant enabled several rural hospitals to invest in telehealth infrastructure, allowing them to provide specialist consultations, remote monitoring, and virtual primary care visits.This initiative has substantially reduced travel times for patients and improved access to specialized care. This demonstrates the power of strategic funding allocation and the positive impact of telehealth in rural communities.

Addressing Challenges to Implementation

Despite the significant investment, several challenges remain:

* Broadband Access: Limited broadband connectivity in some rural areas hinders the implementation of telehealth and RPM programs.

* Workforce Shortages: A shortage of healthcare professionals, particularly in rural areas