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Texas Prepares Nov. 5 Bid for Rural Health Funds as Closure Risks Mount

Texas faces a Nov. 5 filing deadline as CMS plans award decisions by year’s end.

Overview

  • HHSC confirmed it will submit a state application to the Rural Health Transformation program by Nov. 5 following a public hearing on rural needs.
  • Provider finance director Victoria Grady emphasized keeping control close to communities, telling attendees the funds “belong to rural Texans.”
  • Analyses differ on the threat level, with one tally listing 76 hospitals at risk and another citing 84 of 156 at risk, including 21 in immediate danger, after 25 rural closures over two decades.
  • The One Big Beautiful Bill Act created a $50 billion RHT fund, with half distributed equally among approved states and half awarded at CMS discretion.
  • Stakeholders cautioned that Medicaid cuts tied to the law could raise uninsured rates and strain finances, while pharmacies sought a role and HHSC reviewed 300-plus comments after five regional visits.