AHCCCS supports governor’s rural health transformation plan to expand access and equity in Arizona’s rural communities
The Arizona Health Care Cost Containment System (AHCCCS) strongly supports Gov. Katie Hobbs’ submission of Arizona’s application to the federal Rural Health Transformation Program, a major step toward improving health care access and outcomes in rural communities across the state.
The governor’s plan proposes more than $180 million in annual investments over five years to strengthen Arizona’s rural health care system. Developed in collaboration with rural providers, Medicaid health plans, tribal partners and community leaders, the plan addresses critical challenges such as workforce shortages, limited access to care, outdated infrastructure, and behavioral health needs.
“AHCCCS is proud to support this bold and collaborative effort to transform rural health care in Arizona,” said AHCCCS Director Virginia ‘Ginny” Rountree. “This plan reflects the voices of rural communities and aligns with our mission to advance health equity and improve care for all Arizonans. If approved, it will bring vital resources to the front lines of care where they are needed most.”
The governor’s proposal includes:
- $57 million per year to grow and retain the rural health care workforce through education subsidies, training grants and retention incentives;
- $45 million per year to expand access to care via telehealth, mobile clinics, co-located services and improved transportation;
- $27 million per year for key health initiatives, including behavioral health, maternal-fetal health and chronic disease prevention;
- $51 million per year to support rural provider resiliency, reduce administrative burdens and modernize health care technology.
Arizona anticipates a federal funding decision by the end of 2025. If awarded, implementation will begin in early 2026, with AHCCCS playing a key role in distributing funds and supporting rural health system partners.
For more information about the governor’s plan and supporting letters from bipartisan congressional leaders and statewide health organizations, visit Governor Katie Hobbs Submits State Application for Federal Rural Health Transformation Program Grant.
