The New Mexico Health Care Authority (HCA) has submitted its Rural Health Transformation Plan to the Centers for Medicare & Medicaid Services, aiming to secure a portion of a $50 billion federal program designed to improve health care in rural areas. The federal initiative will allocate $10 billion each year over five years to states with approved plans.
New Mexico may receive funding through two channels: half of the total funds will be divided equally among all qualifying states, while the remaining half will be distributed based on competitive scoring and rural population data.
“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’s plan was developed using feedback from public and Tribal forums, responses to a Request for Information, and analysis of statewide health data. Its objectives include increasing the rural health workforce, supporting community-led programs focused on food access, transportation, behavioral health, preventive services, and facility improvements. Other goals are expanding technology and care access for providers and patients in rural areas, strengthening operational sustainability for local providers, and improving public data tools to help residents navigate available care options.
All counties in New Mexico have at least one area that meets federal definitions of rural eligibility according to Health Resources and Services Administration Census tract designations.
Award decisions from the federal government are expected by December 31, 2025. If approved, implementation in New Mexico would begin in 2026.
More information about the plan is available on the HCA Rural Health Transformation Plan web page at http://www.hca.nm.gov/rural-health-transformation-program/.
The HCA administers key programs such as Medicaid, SNAP benefits, LIHEAP assistance for home energy costs, cash aid programs, child support services, behavioral health care across New Mexico, as well as licensing facilities and ensuring provider compliance with safety standards. The agency also manages state employee benefits and works to make coverage more affordable through its Health Care Affordability Fund. It supports individuals with intellectual or developmental disabilities via various home- and community-based initiatives.
