Utah Awarded $195 Million to Transform Rural Health Care

by London Kelley
| Jan 14, 2026

Why it matters: This five-year federal investment gives rural Utah hospitals and clinics the resources to expand services, strengthen their workforce, and build a more resilient health care system.

The big picture: Utah’s application to the Rural Health Transformation Program was approved by CMS on December 29, 2025. The state received $195 million in first-year funding.

What they’re saying: “The money is really meant to benefit rural health, rural communities, rural providers,” says Dr. Matt McCullough, UHA’s Director of Rural Hospital Improvement. “Our top priority is to see that funding go to rural and transform the way that care is delivered in rural Utah.”

Where the money will go:

  • Building or expanding behavioral health units in rural hospitals
  • Purchasing equipment to improve surgical services and care quality
  • Creating rural residency programs to bring more doctors and providers into underserved areas
  • Investing in technology and infrastructure for long-term improvements

What’s next: McCullough says the Utah Legislature will review the plan during its upcoming session, and Utah Department of Health and Human Services is working out the best way to distribute funds to rural providers as quickly as possible.

The bottom line: This isn’t a short-term fix. It’s a strategic, multi-year effort to ensure rural Utahns have access to quality health care close to home.