Missouri Awards $39.4 Million to Modernize Rural Healthcare Services 

The program focuses on renovating, reconfiguring, equipping, and repurposing existing healthcare facilities to better align services with the needs of rural communities. Selected projects include expanded maternal health facilities, behavioral health treatment capacity, diagnostic equipment upgrades, and outpatient care improvements that support the delivery of essential healthcare services closer to home. 

“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 Missouri and CMS is excited to partner with states to build stronger, more resilient rural health systems."

Building on that federal partnership, Missouri leadership emphasized how these investments reinforce the state's long-term commitment to strengthening healthcare across rural communities.

“These investments reflect this administration’s ongoing commitment to strengthening the foundation of rural healthcare in Missouri,” said Governor Kehoe. “By supporting providers as they modernize facilities, expand essential services, and build capacity for the future, we are helping ensure that rural communities have access to the high‑quality care they deserve. This funding will make a meaningful difference for the families and communities who rely on these services every day."

Following a competitive review process, Missouri is awarding full or partial funding to 26 rural providers. Missouri is awarding the maximum funding permitted under federal program guidelines to support critical healthcare improvements across rural communities. 

"Missouri's Rural Health Transformation Program continues to demonstrate what is possible when state leaders, providers, and local communities work together toward a shared goal," said Jess Bax, DSS Director. "These awards will help rural providers expand access to essential healthcare services, modernize aging infrastructure, and better meet the unique needs of the communities they serve. We are proud to support projects that will strengthen healthcare access and improve outcomes for Missourians across rural areas of our state."

A full list of awardees for the Smart Growth and Service Line Modernization is available on Missouri's Rural Health Transformation Program website. All contingent awards have to be approved by the Centers for Medicare and Medicaid Services before a final award can be made.

Supporting essential rural healthcare services 

Smart Growth and Service Line Modernization funding helps rural healthcare providers: 

• Expand access to maternal healthcare services through improvements to obstetric, prenatal, postpartum, and related women's health facilities 

• Strengthen behavioral healthcare capacity through expanded inpatient, outpatient, crisis, and substance use disorder treatment services 

• Modernize diagnostic and outpatient services through equipment upgrades and improvements to imaging, laboratory, and specialty care capabilities 

• Improve chronic disease management by expanding primary care capacity and supporting more coordinated care for patients with ongoing health needs 

Funded projects include new labor and delivery and triage rooms, expanded behavioral health units, a geropsychiatric unit, residential and substance use disorder treatment space, MRI and imaging replacements, new mammography and ultrasound services, and expanded primary care and rural health clinic capacity. 

Highlighting Local Investments 

The awarded projects reflect a range of investments designed to strengthen essential healthcare services across rural Missouri. For example, Missouri Delta Medical Center in Sikeston was awarded approximately $3.3 million to support improvements across maternal health, behavioral health, and diagnostic services. Proposed improvements include three new labor and delivery rooms, three private triage rooms, and renovations to behavioral health and diagnostic spaces. 

This project illustrates how targeted investments can help rural providers expand access to essential services, modernize care delivery, and better meet the needs of their communities. More broadly, the funding is intended to support Missouri's efforts to strengthen rural healthcare sustainability by improving access to preventive and coordinated care, reducing avoidable emergency department use, and preparing providers for future payment models that reward improved patient outcomes. 

As projects move forward, participating organizations will work closely with DSS to implement approved improvements and further advance the long-term goals of Missouri's RHTP. 

To learn more, visit Missouri's Rural Health Transformation Program.