Governor McKee Submits Budget Amendment for Federal Award to Transform Rural Health Care in Rhode Island

Published on Thursday, April 02, 2026

PROVIDENCE, RI — Governor Dan McKee today announced he has submitted a budget amendment [zk8ngbyab.cc.rs6.net] reflecting anticipated spending for State Fiscal Years 2026 and 2027 under Rhode Island’s $156 million Year 1 award from the Rural Health Transformation Program, following recent final approval from the Centers for Medicare & Medicaid Services (CMS). This marks a major step forward in modernizing care and expanding access to lower-cost care across the state’s 18 rural communities.

“Rhode Islanders deserve affordable, high-quality care, and that’s what we’re delivering through this transformative investment,” said Governor Dan McKee. “My Administration is focused on building a healthier state where families, businesses and all Rhode Islanders can all thrive, and this federal award is a testament to our state’s commitment to achieving that goal.” 

In Year 1 of this 5-year program, the McKee Administration secured funding for thirteen initiatives [zk8ngbyab.cc.rs6.net], including:

Supporting Hospitals and Primary Care in Value-Based Payment Transition - $32.2 million

Supports rural-serving providers, including primary care practices, hospitals, and Federally Qualified Health Centers (FQHCs), in transitioning to value-based payment models by providing financial incentives and technical assistance to strengthen care coordination, quality reporting, and population health management, while also exploring opportunities to advance alternative payment models in behavioral health and other health sectors.

Rural Workforce Program - $28.0 million

Invests in primary care providers, behavioral health clinicians, hospital staff, and FQHC workforce through recruitment, training, and retention strategies to expand access and address workforce shortages.

Rural Health Information Technology Modernization Program - $16.7 million

Supports hospitals, FQHCs, primary care practices, and behavioral health providers in adopting interoperable health IT systems to improve data sharing, care coordination, and performance under value-based care models.

Rural Hospital-at-Home Program - $16.2 million

Enables hospitals and affiliated provider networks to deliver inpatient-level care in patients’ homes for clinically appropriate patients, expanding capacity and partnering with primary care providers to safely reduce avoidable inpatient utilization.

Expanding Behavioral Health Services Availability in Rural Regions - $10.2 million

Expands capacity for behavioral health providers, community mental health centers, and integrated primary care settings (including FQHCs) to deliver outpatient mental health and substance use services and better integrate care.

The budget amendment also includes a series of necessary policy changes to maintain the state’s full Rural Health Transformation Program grant award and position Rhode Island to access additional funding. These measures include empowering pharmacists and dental hygienists to practice at the top of their license, enhancing Rhode Island’s ability to join and implement interstate licensure compacts for physicians, physician assistant and nurses, requiring nutrition-focused continuing medical education for physicians, and rolling back Certificate of Need requirements. Collectively, these initiatives expand access to lower-cost care options and strengthen the healthcare workforce.

“For Rhode Islanders in rural communities, access to timely, high-quality care should never depend on where they live. This federal investment, secured by Governor McKee, will provide hospitals and healthcare providers with additional resources to strengthen care delivery and help residents access the care they need—in their communities, in their homes, or wherever that may be,” said Mike Sroczynski, President, Hospital Association of Rhode Island. “By expanding preventive and behavioral health services, investing in our healthcare workforce, and building a more integrated support system, these funds will support both those who deliver care and those who rely on it every day. The Hospital Association of Rhode Island commends the state’s work in securing this important grant award.”

“This award is an incredible achievement and reflects the thoughtful proposal that Governor McKee and the state HHS agencies submitted,” said Elena Nicolella, the president and CEO of the Rhode Island Health Center Association. “We appreciate the strong focus on community-based primary care, and we look forward to supporting the implementation of the program.”

“This award affirms Rhode Island’s commitment to building a more integrated, sustainable, and patient-centered health system. Care Transformative Collaborative of Rhode Island (CTC-RI) is honored to serve in a pivotal implementation role and grateful for the state’s confidence in our ability to lead and coordinate complex, multistakeholder transformation efforts. We view this as more than a grant, but as an opportunity to strengthen the foundation of care delivery in rural communities and build durable capabilities that will benefit Rhode Islanders for years to come,” said John Minichello, Executive Director of the Care Transformation Collaborative of Rhode Island (CTC‑RI), a nonprofit focused on improving primary care and driving value‑based, team‑based health care across the state.

“We are pleased to begin implementing our rural health transformation project now that we have final CMS approval of Rhode Island’s budget and operational plan,” said Executive Office of Health and Human Services (EOHHS) Secretary Richard Charest. “We look forward to engaging with our rural health communities on next steps as we expand access, support our local healthcare workforce, and build innovative models of care.”

“Block Island faces unique challenges in delivering healthcare due to our geographic isolation. Through the partnership with Governor McKee’s administration and EOHHS under the Rural Health Transformation Program, we can strengthen local services and expand innovative care models, ensuring residents have access to coordinated, high-quality care close to home,” said NettieRose Cooley, CEO of Block Island Health Center.

“The Rural Health Transformation Program provides a meaningful opportunity to enhance health services for our Tribal members in partnership with the state. By working collaboratively with Governor McKee’s administration and EOHHS, we will expand access to care, strengthen our healthcare workforce, and deliver innovative, culturally responsive services that reflect the unique needs and values of our Tribal community," said Autumn Leaf Spears, Director of the Narragansett Indian Tribe Department of Health & Human Services.

“The League of Cities and Towns is proud to support the Rural Health Transformation Program by helping integrate health and wellness initiatives into Community Learning Centers across rural towns. Partnering with the Governor’s administration and EOHHS, these centers will support the overall health of Rhode Islanders in rural areas,” said Randy Rossi, Executive Director of Rhode Island League of Cities and Towns.

This project is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $156,169,931.19 in Budget Period 1 with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.