IOWA CITY, Iowa (KCRG) – Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz visited the University of Iowa on Wednesday, joined by Congresswoman Mariannette Miller-Meeks for a tour of the Children’s Hospital.
During the visit, Dr. Oz and Miller-Meeks touted the Rural Health Transformation Program, a federal program that stems from the “One Big Beautiful Bill Act.”
The $50 billion program allocates 50% of funds equally to states. The other half will be allocated by the Centers for Medicare & Medicaid Services based on factors like population. The program runs until 2030.
Iowa has received $209 million for the first year of the program.
The funding comes as part of the “One Big Beautiful Bill Act,” which cut premium tax credits and Medicaid funding. During the visit, Dr. Oz defended the move.
“We didn’t cut Medicaid at all. We actually increased Medicaid funding. What we didn’t do was put 5.4 trillion dollars into a system that I believe would have bankrupted Medicaid,” Oz said.
“The Working Families Tax Cut Legislation will not have any impact on hospitals until next year. None. And in many states, it doesn’t really have much of an impact until 28. The support of rural health care, we started immediately,” Oz said.
In response to the program, the president of the Iowa Hospital Association, Chris Mitchell, said he appreciates the commitment to moving the Rural Health Transformation funds quickly, but it won’t be enough to make up for the cuts to Medicaid, especially hurting rural hospitals.
Read his full statement below:
We appreciate the strong commitment from Governor Reynolds and the Iowa Department of Health and Human Services to move Rural Health Transformation Program funds quickly in Iowa. In fact, Iowa was the first state to award funding – some of our hospitals have already been awarded grants from the fund and look forward to utilizing those dollars to enhance rural healthcare delivery.
However, there is a clear disconnect between Congressional intent and how these funds are being distributed.
Congress intended RHTP funding to help stabilize rural hospitals, but current CMS guidance limits how funds can be used while hospitals continue to face permanent reductions in Medicaid directed payments. Rural hospitals are being asked to take on additional projects and administrative responsibilities in exchange for temporary funding that does not provide long-term fiscal stability.
Before hospitals can transform care delivery, they must first be stabilized. At the end of the day, this is about protecting access to care for Iowans. Investments in workforce, equipment, cancer care, maternal health, and rural health hubs are all aimed at strengthening access for patients across the state.
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