Governor McKee Announces $156 Million Federal Award to Transform Rural Health Care in Rhode Island

PROVIDENCE, RI — Governor Dan McKee today announced that Rhode Island has been awarded over $156 million in federal funding over five years to transform health care delivery in the state’s 18 rural towns and provide critical support to local providers. The award follows a competitive federal application led by the McKee administration in partnership with state agencies, health care providers, and community stakeholders. The program will be over five years, and the announcement today represents the first year of the award. 

“This is a major win for Rhode Island,” said Governor McKee. “My administration has secured $156 million to expand access to care by investing in primary care, preventive services, and behavioral health, and by partnering with hospitals and local health providers to bring lower-cost care options closer to home. This funding allows us to strengthen the foundation of our health system, improve outcomes, and ensure Rhode Islanders can get the affordable, high-quality care they deserve.”

As outlined in Rhode Island’s approved Rural Health Transformation Program (RHTP) framework, the state will work closely with the Centers for Medicare & Medicaid Services (CMS) over the next 30 days to finalize the detailed budget and implementation plan. While that process continues, the core priorities of the award are clear and reflect the strategies advanced in the state’s application.

Key Priorities and Strategies:

·    Expanding Access to Care Through Federally Qualified Health Centers (FQHCs): Improving access to primary care, behavioral health, and dental services for rural residents by positioning FQHCs as clinical anchors in their communities.

·    Delivering Hospital Care at Home: Expanding Hospital at Home programs to allow patients across the state to safely receive hospital-level care in their own homes—improving outcomes, lowering costs, and keeping families together during recovery.

·    Advancing Value-Based Care: Investing in value-based payment models that reward quality and outcomes rather than volume, helping primary care practices, community health centers, hospitals, and local providers deliver more coordinated, preventive, and cost-effective care.

·    Combating the Opioid Crisis and Expanding Behavioral Health: Strengthen behavioral health capacity by launching crisis stabilization facilities and recovery centers so residents in small and remote communities hit hard by the opioid epidemic can receive 24/7 community-based support closer to home.

·    Modernizing Health IT: Providing Health IT modernization grants to equip providers with the digital tools needed to expand telehealth, improve data connectivity, leverage AI for care coordination, and participate in value-based care—supporting better care delivery across Rhode Island’s 18 rural towns.

·    Growing the Health Workforce: Workforce development, including new clinical training placements, mentorships, and education-to-employment pathways in high-demand health care fields to better serve rural patients.

·    Investing in Mobile Health and Emergency Medical Services: Mobile health services, a statewide tele-dentistry triage system, and major EMS modernization investments to expand access to coordinated, affordable care in rural communities.

·    Supporting Local Health Systems: Investments designed to meet the distinct health needs of Block Island and the Narragansett Indian Tribe, strengthening local care systems and ensuring services reflect each community’s priorities and culture.

·    Building Integrated Community Care: Integrated, community-based care models to improve chronic disease management, preventive care, and behavioral health services through local providers, community learning centers, and other trusted rural community institutions.

“This investment also strengthens our ability to confront the opioid epidemic head-on by expanding access to treatment and behavioral health services in trusted, community-based settings,” Governor McKee said. “By supporting community learning centers, community health centers, and primary care providers, we are meeting people where they are, connecting them to care earlier, and building a stronger, more coordinated system of support across Rhode Island.”

The application was developed through a coordinated effort within the McKee Administration led by the Executive Office of Health and Human Services (EOHHS) in partnership with the Department of Health (RIDOH)’s Office of Primary Care and Rural Health and multiple state agencies, with engagement from hospitals, primary care providers, behavioral health agencies, municipal leaders, and the Narragansett Indian Tribe. The process also incorporated extensive public input through a statewide rural health survey, which captured the experiences and priorities of rural residents and providers, along with a series of community listening sessions held across northern and southern Rhode Island and on Block Island.

“This funding gives Rhode Island a chance to strengthen our health system, rethink how rural care is delivered, modernize public health infrastructure, and improve recruitment, training, and retention in our healthcare workforce,” said Director of Health Jerry Larkin, MD. “I’m grateful for all the collaboration that went into Rhode Island’s application, and I am looking forward to all the good that will come of this opportunity in the years to come.”

“This federal investment gives Rhode Island an opportunity to rethink how we deliver healthcare in our rural communities and ensure that every Rhode Islander has access to high-quality, dependable health care,” said Richard Charest, Secretary of the Rhode Island Executive Office of Health and Human Services (EOHHS). “Over the coming years, EOHHS looks forward to working with our partners to expand access, support our local healthcare workforce, and build innovative models of care.”

“Rhode Island’s rural communities deserve the same opportunity to thrive as every other corner of our state,” said EOHHS Assistant Secretary Ana Novais. “Our application to the Rural Health Transformation Grant was shaped by input from local residents, providers, and community leaders. We heard about the challenges they face and the solutions they envision, and we let their voices guide our priorities. This award from the Rural Health Transformation Grant program allows us to turn that shared vision into action.”

More details on implementation and next steps will be released following final CMS approval of the state’s budget and operational plan.