Federal government awards $50 billion to states for rural healthcare.

ARCADIA, Fla. — The federal government awarded Florida $209 million to "transform" rural healthcare, but some experts are skeptical it will make a big difference after Congress passed deep cuts to Medicaid that could force some hospitals to close.

The Centers for Medicare and Medicaid Services (CMS) announced $50 billion in federal funding nationwide as part of the Rural Health Transformation Program. The money will fund workforce development, expand access to care, and improve rural healthcare infrastructure, CMS said.

“Today marks an extraordinary milestone for rural health in America,” CMS Administrator Dr. Mehmet Oz said in a statement.

"Thanks to Congress establishing this investment and President Trump for his leadership, states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running," Oz said.

Florida’s award will support start-up funding for rural and satellite clinics, mobile health units, and telehealth services, according to Gov. Ron DeSantis' office. It will also expand clinical training and rural rotations.

Every state received at least $100 million in funding, according to Prrofessor Timothy McBride, a rural healthcare researcher at Washington University in St. Louis.

States then applied for additional funding. CMS considered several factors, including the number of rural residents and rural healthcare facilities. It also weighed whether states are aligned with the Trump administration's Make America Healthy Again initiative.

Florida received $115 per rural resident, McBride said, coming in at 35th in the nation.

The announcement comes after Congress passed significant cuts to Medicaid, a critical source of funding for many rural hospitals. Congress approved at least $880 billion in Medicaid cuts over the next decade as part of the One, Big, Beautiful Bill Act that President Donald Trump signed into law last year.

Rural populations are generally older and more impoverished, according to federal government data. That makes Medicare and Medicaid an important source of rural healthcare coverage.

Medicare and Medicaid reimbursements account for up 70% of revenue at some rural hospitals, McBride said.

Congress largely spared Medicare. But Medicaid cuts could strip rural areas of $137 billion, McBride said.

“Many rural hospitals across the United States are teetering on the edge. They’re already in negative balance," McBride said. "They’re going to be pushed into negative balance by this. So we’re worried that they’re going to go broke.”

Uncertainty around future Medicaid payments led DeSoto Memorial Hospital (DMH) to consider a sale last year. DMH is the county's only hospital and one of it's largest employers. Tampa General Hospital acquired DMH through a lease agreement in November.

DMH CEO Vince Sica welcomed the CMS funding in a statement to FOX 4.

"It is a good opportunity to expand services to rural communities and create access to newer technologies such as tele-health and enhanced electronic health records," Sica said. "We are collaborating with our community partners to take advantage of these opportunities."

Another challenge for rural healthcare providers is hiring and holding on to staff. CMS said the rural transformation program will fund clinical workforce training, residencies, and new pathways that help students begin health care careers in their own communities.

Physicians Assistant Ken Cetin has practiced medicine in DeSoto County since for more than 30 years. He owns Family Care Medical Center, a federally-certified rural healthcare clinic in Arcadia.

Cetin said administrative staffing is a challenge because insurance companies have bogged down providers with paperwork, including prior authorization.

“It’s hard to sustain those types of administrative burdens, it’s hard to retain staff," Cetin said. “There’s a lot of things in a rural area that inherently make it hard to practice.”

Rural areas often lack access to specialty and mental health care. Arcadia just lost it's only cardiologist and endocrinologist, Cetin said, putting an increased burden on his own practice.

CMS said the new funding will expand preventive, primary, maternal, and behavioral health services in rural areas. That includes investments in telehealth, which Cetin welcomed.

“I definitely think [the money is] going to make a difference," Cetin said. "However I do have a concern because there’s been other monies like that allocated for rural areas and it’s difficult for it to get down to the grassroots of a practice like mine.”

Cetin said he doesn't have the staff to apply for federal grant money that requires significant oversight and paperwork. Cetin said it previously cost him $5,000 to apply for a mental health integration grant, only to be denied.

The governor's office said Florida's Agency for Health Care Administration will soon release funding throughout the state. FOX 4 reached out to the agency for more information about how the money will be distributed, but did not receive a response.

McBride said the Trump administration created a team to monitor how the money is spent. If states don't follow the rules, they could lose funding.

He said the money could have a positive impact by increasing the workforce, updating electronic medical records, and expanding mental health care.

“I think the proof will be in the pudding to just watch this for a few years and see if it helps," McBride said. "Part of the worry here is rural health has been struggling for [the] better part of a decade, and you know, is this going to be enough to pull it out?”