SANTA FE – New Mexico has submitted a plan to the federal government requesting $1 billion in funding over five years to expand the health care access in rural communities through workforce development, technology and community programs.
The New Mexico Health Care Authority (HCA) sent its Rural Health Transformation Plan to the Centers for Medicare & Medicaid Services outlining five strategic initiatives to strengthen care in underserved areas. The federal program will distribute $10 billion annually over five years to approved states.
New Mexico could receive funding through two mechanisms: $25 billion will be distributed equally among all states with approved applications, and another $25 billion will be awarded based on competitive scoring and rural population factors.
“This plan reflects the voices of rural New Mexicans who know their communities best,” said Dana Flannery, Medicaid director. “We are committed to building a sustainable system that supports our rural providers and ensures every New Mexican has access quality, timely health care services.”
The state developed the plan using input from a Request for Information, public and Tribal forums, and a review of statewide health data review.
The plan’s goals are to:
- Grow the rural health care workforce to ensure more consistent, local access to services.
- Fund community-led programs addressing access food access, transportation, behavioral health, preventative services and facility modifications.
- Expand access to care and technology for rural providers and patients.
- Support operational and financial sustainability of rural health providers.
- Enhance public data tools to help patients and families navigate the health care system and understand available care options.
- Every New Mexico county includes at least one eligible rural area under federal guidelines, which use Health Resources and Services Administration Census tract designations.
The federal government expects to announce award decisions by Dec. 31, 2025. If approved, New Mexico will begin implementation of the new grant in 2026.
For more information, visit the HCA Rural Health Transformation Plan web page at http://www.hca.nm.gov/rural-health-transformation-program/.
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About the New Mexico Health Care Authority
The New Mexico Health Care Authority connects New Mexicans to the care and support they need to live healthy, full lives. The agency administers Medicaid, the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), cash assistance, child support services, and behavioral health care across the state. HCA also oversees the State Health Benefits program for state employees and manages the Health Care Affordability Fund to help make coverage more affordable for working families. The agency licenses health care facilities, investigates complaints, and ensures providers deliver safe, high-quality care. In addition, HCA supports individuals with intellectual and developmental disabilities through a variety of home and community-based programs that protect health, safety, and human rights.