Iowa Invests $78.6 Million in Rural Healthcare Transformation
Des Moines, Iowa – – Iowa is leading the nation in deploying federal funds to bolster healthcare access in rural communities. Governor Kim Reynolds and the Iowa Department of Health and Human Services (HHS) announced the intent to award more than $78.6 million through two competitive Requests for Proposals (RFPs) as part of the Iowa Healthy Hometowns Project, funded by the Centers for Medicare & Medicaid Services’ Rural Health Transformation Program.
Iowa was awarded a total of $209 million in federal funding for the first year of the program and is the first state in the nation to award funding for its project initiatives, according to Governor Reynolds. “These investments represent a major step forward in ensuring that rural Iowans have access to high-quality health care services and providers,” she said in a statement released .
The initial grants specifically support the Hometown Connections initiative, a key component of the Healthy Hometowns Project. This initiative focuses on building partnerships to restructure health care delivery options specifically tailored for rural areas. The funding will be allocated to two primary areas: procuring and installing medical equipment and supporting healthcare workforce recruitment.
Nearly $66 million will be dedicated to medical equipment procurement and installation, with the goal of introducing new lines of service not currently available in rural regions and strengthening the sustainability of existing healthcare delivery. This includes funding for essential equipment such as MRI systems, CT scanners, and robotic surgical systems, as well as minor alterations and renovations where necessary.
An additional $12.6 million will be used to recruit physicians, nurses, and other health professionals to underserved areas. This effort aims to address critical staffing shortages in rural Iowa by offering incentives such as recruitment bonuses and relocation assistance. The goal is to attract full-time healthcare providers to these communities.
The grants, which are the first state awards under the national initiative, are expected to have a significant impact on the quality and accessibility of healthcare in rural Iowa. According to the Iowa HHS website, a list of awardees is now available for public review.
Additional RFPs for Healthy Hometowns initiatives are forthcoming, signaling a continued commitment to strengthening rural healthcare infrastructure throughout the state. Iowa received the $209 million in federal funding for the program’s first year, with further grant rounds anticipated later in .
Among the organizations receiving funding are Belmond Community Hospital, Wright County; Ellsworth Municipal Hospital DBA Hansen Family Hospital, Hardin County; Hancock County Health System, Hancock County; Humboldt County Memorial Hospital, Humboldt County; and Mercy Health Services-Iowa, Corp.
