“From the mountains of eastern Kentucky to the farmlands of western Kentucky, our rural communities are at the heart of what makes Kentucky special, representing our state’s natural beauty, signature industries, and long-held traditions. With 42% of Kentuckians living in rural communities, ensuring access to essential services, including high-quality healthcare, remains a focus of our legislative work and committee discussions, because strengthening our rural healthcare system is critical to expanding opportunity in rural Kentucky.
This month, the Interim Joint Committee on Health Services received an update from the Cabinet for Health and Family Services (CHFS) on Kentucky’s Rural Health Transformation Plan. This plan serves as Kentucky’s roadmap for participation in the Rural Health Transformation Program, a federally funded $50 billion initiative to strengthen and stabilize rural healthcare systems across the country. Ten billion dollars in funding is available annually over five fiscal years.
To receive funding, states were required to submit an application detailing a proposed plan in November 2025, with award decisions announced in late December. Kentucky received nearly $213 million in funding for 2026, the 11th-highest amount awarded in the nation.
Kentucky’s Rural Health Transformation Plan addresses some of the biggest challenges facing the state’s rural healthcare system, including chronic disease, maternal health, behavioral health, oral health, and emergency response.
To address these challenges, the plan includes five initiatives:
Rural Community Hubs for Chronic Care Innovation: The Rural Community Hubs (RCH) initiative aims to bring together programs, resources, and technology tools to help local community organizations take a preventive approach to chronic disease throughout a patient’s care. Obesity and diabetes are the initial focus.
PoWERing Maternal and Infant Health: The People who Work for Engagement and Resilience (PoWER) initiative supports pregnant women in Kentucky’s maternity deserts from pregnancy confirmation through one year postpartum. It aims to enhance access to perinatal and infant care through local teams of community health workers, doulas, and peer support specialists.
Rapid Response to Recovery (EmPATH Model): The Rapid Response to Recovery (RRR) initiative builds on Kentucky’s mobile crisis intervention services and the Emergency Psychiatric Assessment, Treatment, and Healing (EmPATH) model, which provides individuals experiencing mental health and substance use crises care in therapeutic settings. RRR aims to address high rates of untreated mental illness and substance use disorder by expanding local behavioral health crisis support and using technology to connect individuals with providers and services.
Rooted in Health: Rural Dental Access: The Rooted in Health (RIH) initiative seeks to improve dental care in rural Kentucky by increasing dental externship opportunities and training programs with rural providers, providing teledentistry support, expanding access to oral hygiene care through portable and mobile dental clinics, and reducing emergency department visits for routine dental pain.
Crisis to Care: Integrated Emergency Medical Services (EMS) Response and Coordination: The Crisis to Care (CTC) initiative seeks to improve emergency medical response by strengthening workforce training, leveraging technology, and creating new protocols so individuals can be treated in place or directed to the appropriate care setting instead of the emergency room. One area of focus is on a special needs tracking and awareness response system (STARS), ensuring these individuals receive appropriate support and care.
As plan implementation begins, CHFS emphasized that tracking performance will be crucial for measuring progress, building a sustainable system, and ensuring long-term success.
While the plan is designed to benefit all rural residents, we also recognize that Medicaid recipients are a significant part of our rural healthcare population.
This past session, we passed House Bill 500, which includes more than $6 billion over the next two fiscal years to fund Medicaid. This includes funding for additional Medicaid waiver slots, Medicaid Benefits Program support, and maintaining services at the existing clinics participating in the Certified Community Behavioral Health Clinic (CCBHC) demonstration program. We also took steps to reform our state’s Medicaid program to better serve our most vulnerable and strengthen program oversight and accountability with the passage of House Bill 2.
In addition, the General Assembly has taken action to support rural hospitals, a critical piece of the rural healthcare system, with the creation of the Kentucky Rural Hospital Loan Program. This program provides low-interest loans to rural hospitals to help maintain or upgrade facilities, maintain or increase current staff, and provide healthcare services not currently available.
As we move forward, we remain committed to strengthening our rural healthcare system. When rural communities have access to high-quality care close to home, our families, communities, workforce, economy, and the health of our state all benefit.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at Amy.Neighbors@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.”
(Representative Amy Neighbors)