Wyoming’s rural health transformation plan approved by CMS; state to post RFPs July 1

The Department of Health told the Joint Appropriations Committee that the Centers for Medicare & Medicaid Services approved Wyoming’s revised Rural Health Transformation plan on May 14. The program — part of a federal initiative providing funds to states for rural‑health projects — will allow Wyoming to distribute year‑one awards under priorities shaped by public input: critical access hospital and ambulance incentives, workforce education and loan‑repayment supports, a technology adoption challenge for telehealth and stroke/trauma tools, and community health grants to expand primary and preventive services.

Director Stephan Johansson described an extensive public engagement process last fall and said the state tailored its application to priorities consistently raised by rural residents and providers: sustaining local emergency departments, adding local obstetrics where feasible, stabilizing ambulance services, expanding primary care access and training frontline workforce such as CNAs and EMTs. He said the federal negotiations focused on (a) whether the state could create a lasting ‘perpetuity’ account and (b) whether certain provider‑directed amounts would be interpreted as traditional provider payments subject to caps. After negotiation, CMS approved the revised plan with the caveat that year‑one federal funds may not be placed directly into a perpetuity account; the department revised its budget accordingly.

Johansson said the department will issue requests for applications and proposals on July 1 with roughly 30 days to apply; awards for year‑one must be obligated by October 30, 2026, and spent by October 2027. He emphasized the state designed many investments as incentives for sustainable business models (regional partnerships, alternative payment models) rather than one‑time subsidies.

What happens next: DH will post RFPs on July 1, accept applications, and score them during August–September. The committee will monitor implementation and asked the department to return with details as RFPs are released.