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Iowa leads the nation in early Rural Health Transformation progress, obligating $209,040,063.71 in the first-year award

DES MOINES, Iowa — Iowa has reached a milestone moment in implementing their Rural Health Transformation initiative - Healthy Hometowns. 

The state has fully obligated the full $209,040,063.71 Iowa was awarded in the first year of the program, funded by the Centers for Medicare & Medicaid Services (CMS). Iowa was one of the first states in the nation to award funding early this year and continues to lead the nation in allocation of this funding to expand clinical services, strengthen the rural health workforce, modernize technology and infrastructure, and improve coordination across the state’s rural health system.

Year one investments have already delivered measurable results, including new advanced surgical capabilities, expanded maternal‑fetal and behavioral health services, rural workforce recruitment, cancer prevention initiatives, and modernization of Iowa’s health information exchange.

“The Trump Administration’s Rural Health Transformation Program has a simple formula for success: state innovation backed by federal funds equals lasting improvements for rural communities," said CMS Administrator Dr. Mehmet Oz. " Investing in locally driven solutions is an important step toward achieving that vision for rural Iowa and CMS is excited to partner with states to build stronger, more resilient rural health systems."

“Iowans deserve high-quality care close to home, and that’s what Healthy Hometowns is helping deliver,” said Governor Reynolds. “In just one year, we’ve expanded services, strengthened the workforce, and brought new technology to communities across Iowa.”

“Year one has been about turning this investment into results for rural communities,” said Iowa HHS Principal Deputy Director Larry Johnson. “I’m incredibly proud of our team’s work, and now we’re focused on measuring those results and building on the progress.”

Transforming Rural Health Care Across Iowa
Key accomplishments of Iowa’s Healthy Hometowns project include:

  • Advanced care in rural hospitals: Seven major medical equipment installations supported 44 advanced procedures already, including robotic‑assisted orthopedic surgery.
  • Iowa’s first Maternal‑Fetal Medicine Telehealth Network: Enables same‑day specialist review of advanced imaging; 27 rural patients served in the first two weeks.
  • Strengthening the rural workforce: Recruitment efforts expanded pediatric, psychiatric, OB/GYN, primary care and family medicine services in multiple rural communities.
  • Cancer prevention and screening: Three new rural cancer prevention specialists, expanded screening for uninsured Iowans, radon mitigation educational awards, and 96 telehealth tablets deployed across 65 counties.
  • Supporting rural communities: Nine statewide training events reached more than 600 providers, and 16 new operational tools were developed to strengthen care coordination.
  • EMS and Mobile Integrated Health: A new statewide ImageTrend Community Health module that supports chronic disease management and reduces avoidable emergency department use.
  • Modernizing health information infrastructure: More than 100 facilities connected to updated health information exchange tools, expanded Direct Secure Messaging, and statewide electronic lab reporting now live.


Healthy Hometowns is designed to ensure rural Iowans can access high‑quality care close to home while giving rural hospitals the workforce, technology and infrastructure needed for long‑term sustainability.

Transparency and Accountability
Iowa HHS developed a publicly accessible Rural Health Transformation Dashboard to provide information on funding, investments and outcomes. The dashboard is available at hhs.iowa.gov/HealthyHometowns

About Healthy Hometowns
This project is supported by the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling approximately $209,040,063.71 in the first year of a potential five-year grant with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official view of, nor an endorsement, by CMS/HHS, or the U.S. Government. 

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