$190M in federal funds headed to Maine’s rural hospitals

File Photo / Tim Greenway Steven Michaud, president of the Maine Hospital Association, said that $190 million in federal funding awarded to Maine "has the potential to do many positive things for our rural hospitals and our rural citizens."

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By Renee Cordes

Maine is set to receive $190 million in federal aid to support rural hospitals, part of a $50 billion national initiative to help offset losses tied to planned Medicaid cuts.

The Rural Health Transformation Program, unveiled this week, aims to strengthen and modernize health care in rural communities nationwide over the next five years.

States will receive an average of $200 million in the first year, with amounts ranging from $147 million to $281 million.

“This award will support Maine’s work to expand access to care, strengthen the health care workforce, advance technology, improve the health of Maine people, and promote the long-term sustainability of rural health systems statewide,” said Maine Department of Health and Human Services Commissioner Sara Gagné-Holmes.

“We look forward to engaging with the U.S. Centers for Medicare and Medicaid Services to finalize Maine’s budget and begin implementation in 2026,” she added.

The award will support Maine’s efforts to expand access to care, improve population health, strengthen the rural health workforce, advance technology and data integration, and promote the long-term sustainability of rural health systems statewide.

Several plans for the funds were outlined in Maine’s application, including the use of community paramedicine to transform care capacity and the expansion of community health worker and peer support programs.

'Now the work begins'

Steven Michaud, president of the Maine Hospital Association, said the funding helps mitigate some of the damage caused by rolled back support for Medicaid.

“$190 million is a lot of money for a state like Maine, and it has the potential to do many positive things for our rural hospitals and rural residents,” he told Mainebiz. “Now the work begins to ensure it is spent wisely and in a focused way to support rural hospitals and their patients.”

U.S. Sen. Susan Collins, R-Maine, chair of the Senate Appropriations Committee, said the funding will support innovative approaches that can lower costs and improve health outcomes for all Mainers regardless of where they live.

“While this investment will not solve every challenge facing our state’s rural health care system, it represents an important step toward improving access to care for individuals across rural Maine and comes at a time when many rural health care providers are facing significant financial hardship,” she added.

Collins is running for reelection in 2026.