Idaho to receive almost $1 billion in Rural Healthcare Transformation Program

SALMON, Idaho (KIFI) – Idaho is set to receive an infusion of close to $1 billion from the federal government to support rural health care statewide.

Idaho was awarded $185.87 million each year for five years to update and sustain rural health care systems.

In Lemhi and Custer counties, Steele Memorial Medical Center CEO Preston Becker said the hospital is the only source for critical services within a 2.5 hour drive over rugged terrain.

"Every corner of our facility is overcapacity, and we operate on near break-even margins every year, which creates a lot of challenges," Becker said. "We're unable to finance needed facility expansion, purchasing modern technology, (and) workforce incentives that are required to meet the demand."

In addition to helping with these needs, Becker said the funding could assist with recruitment and retention of medical professionals. Steele Memorial Hospital is Salmon's largest employer.

"We're excited about the potential for this funding," Becker said. "My hope is that it's not a Band-Aid because it's a significant amount of money, but it doesn't begin to replace the amount of funding that's being cut out of funding the Medicaid programs across the country.”

Idaho’s grant targets five key objectives, according to a news release from Idaho Gov. Brad Little.

• “Improve rural access to care through technology.
• “Expand innovative care models.
• “Strengthen workforce recruitment, training, and retention.
• “Support population-specific, evidence-based prevention and chronic disease efforts.
• “Invest in rural health infrastructure and partnerships."

The funding comes from the “One Big Beautiful Bill Act,” which passed in July, allocating $50 billion nationwide for Centers for Medicare and Medicaid Services (CMS) grants to improve health care “access and affordability” for people in rural America.

In the upcoming Legislative session, Idaho lawmakers will still need to authorize and allocate the funding for deployment across the state, Becker stated.