Georgia hospitals get $93M in federal aid, but rural leaders say it won’t be enough

ATLANTA, Ga. (Atlanta News First) — Hancock Memorial Hospital closed in 2001. Twenty-five years later, a healthcare CEO who grew up here says new federal money alone won’t fix what rural Georgia lost.

Faris Flournoy, CEO of Flournoy Health Systems, grew up in Hancock County. He remembers a dirt-road accident he witnessed as a kid, before the hospital closed.

“That’s precious time,” Flournoy said. “That’s life. And it can be life-altering as well.”

When the hospital closed, more than 9,000 people lost their closest hospital overnight, according to a Georgia Department of Audits and Accounts report.

Hancock County isn’t alone. The Georgia Hospital Association found 18 hospitals have closed statewide since 2013. Right now, 22 Georgia hospitals are at risk of shutting down, according to a 2025 analysis by the Chartis Center for Rural Health.

What the funding covers

The Trump administration announced last week that $93.3 million is being delivered to Georgia through the federal Rural Health Transformation Program, aimed at helping rural hospitals adopt new models of care and improve health outcomes, according to a CMS press release.

The investment will help 87 rural hospitals prepare for value-based care, expand training and recruitment for nurses, EMTs and paramedics, and improve access to maternal and behavioral health services, newborn screening, and other services through telehealth, transportation and expanded care networks. It will also bring surgical robotics, dementia care capacity and telehealth infrastructure to rural communities.

According to CMS, the funding is organized around four priorities:

• Preparing rural hospitals for value-based care: Pre-implementation funding for 87 rural hospitals to prepare for participation in CMS’ AHEAD Model, helping providers build capacity to transition toward more sustainable, accountable care.
• Strengthening the rural health workforce: Expanded education and training for nurses, EMTs and paramedics, along with new approaches to recruiting and retaining rural health care professionals.
• Expanding access and the continuum of care: Investments in telehealth access points, maternal and behavioral health care, newborn screening, transportation and other services connecting rural patients to care.
• Modernizing rural health care through technology: Funding for rural hospital cybersecurity, telehealth capacity, surgical robotics and other tools aimed at strengthening care delivery and workforce retention.

With this funding, Georgia has now committed the full $218.8 million awarded to the state for the first year of the program. The money was made possible through the Working Families Tax Cuts Act — also known as the One Big Beautiful Bill Act — which delivers a $50 billion national investment in rural health care. The legislation passed with Republican support in Congress and was unanimously opposed by Democrats, according to the release.

Officials react

Health and Human Services Secretary Robert F. Kennedy Jr. said the funding reflects a commitment to rural communities.

“We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home,” Kennedy said in the release.

CMS Administrator Dr. Mehmet Oz called the investment patient-focused.

“This is what rural health transformation should look like: federal investment that is putting patients first, driving lasting improvements and expanding healthcare for the hardworking Americans who call these communities home,” Oz said.

Gov. Brian Kemp thanked federal officials and state health leaders for the rollout.

“Transformational funding is going toward innovating and improving our healthcare system, with more awards to come,” Kemp said. “Georgia patients will ultimately benefit the most, and I look forward to this good work continuing in the years ahead.”

U.S. Rep. Rich McCormick, who is also a physician, said the investment addresses a long-standing gap in care.

“Where you live should never determine the quality of care you receive,” McCormick said. “By strengthening our hospitals, expanding telehealth, investing in our healthcare workforce, and bringing cutting-edge technology closer to our communities, we are giving providers the tools they need to better serve their patients.”

Other members of Georgia’s Republican congressional delegation — including reps. Buddy Carter, Brian Jack, Austin Scott, Andrew Clyde, Mike Collins, Barry Loudermilk, Rick Allen and Clay Fuller — also praised the funding, with several noting that no congressional Democrats voted for the underlying legislation.

A rural health leader pushes back

Flournoy said the money is good, but he doesn’t want people to think throwing money at the problem is the solution.

“It’s a great start,” he said. “But I see the gaps. I don’t want people to think the 93.3 is going to solve everything.”

Flournoy said the real test starts the moment a patient walks out the hospital door.

“Think about that person who doesn’t have a vehicle, and their daughter lives 30, 40 miles down the road,” he said. “What happens to them? That’s what we have to solve for.”

He also pointed to a gap this funding doesn’t address: Georgia has not expanded Medicaid, a longstanding position for Democrats in Georgia and in Washington. In states that haven’t expanded Medicaid, 53% of rural hospitals are operating in the red, according to the Chartis Center for Rural Health.

Flournoy described the human cost of limited rural access.

“An individual passed away after having a mini stroke,” he said. “That’s so foreign up here in Atlanta — you don’t die from a mini stroke because we have a hospital on every corner.”

The announcement completes Georgia’s initial Year 1 award cycle under the Rural Health Transformation Program, which is part of a larger overall funding amount awarded to the state for fiscal year 2026, according to CMS.

More information about the program is available on the Medicaid.gov Rural Health Transformation Program page.