Governor Hobbs’ team turned in Arizona’s plan for the federal Rural Health Transformation Program, which is meant to help people in rural areas get better access to health care and support the doctors, nurses, and clinics that serve them.
The $10B national fund was included in HR1 as political cover for cutting Medicaid funding starting in 2027 which will, over time, have a profoundly bad impact on access to care in rural America.
AZ’s plan focuses on supporting the rural health care workforce and improving access to care. For the workforce part, it asks for $57M/year for 5 years to support medical residencies, training, and education for people who want to work in rural health. That is really good.
From the report: Rural Health Workforce Development and Training Program to recruit and retain clinicians and allied health professionals using high school educational pathways, education accessibility incentives, financial incentives (including stipends, commuting, and relocation support), and provider upskilling and residency support (both tied to rural service commitments).
It also has some money to keep current doctors and nurses in rural areas by helping with relocation and commuting.
Note: See how Noem and Rubio are working against rural healthcare in the next blog about their new $100K H1B visa application surcharge for foreign born doctors: Noem & Rubio’s $100K H-1B Visa Surcharge: How their decision will harm rural voters who overwhelmingly voted for their boss – AZ Public Health Association
The plan requests $45M/year for 5 years to expand telehealth, mobile clinics, co-located services, and better health transportation. Some of it’s for behavioral health and substance use services, including naloxone access, tele-behavioral health, and crisis services ($10M).
Another $5M is for maternal-fetal health, supporting obstetric care and mental health resources for mothers.
The 7 person Arizona Office of Economic Opportunity (in the Governor’s Office) will oversee and coordinate many of the initiatives, but ADHS and AHCCCS will oversee other parts:
| Workforce Development | OEO |
| Behavioral Health and SUD Expansion Grant | AHCCCS |
| Chronic Disease Prevention and Management Grant | ADHS |
| Improving Rural Maternal-Fetal Health Grant | ADHS |
| Telehealth, Mobile Clinics, Service Access Expansion | OEO |
| Technology upgrades, administrative streamlining | OEO |
| Coordination and Oversight | OEO |
Editorial Note: Seems to me that too many of the responsibilities are tied to a current 7-person office run out of the Governor’s Office (OEO). If it were me, I’d consider giving AHCCCS?ADHS more of these responsibilities (especially workforce development).
Governor Hobbs hopes to hear back from the federal government by New Year’s Eve, with funding starting in early 2026.
