Federal funding will address significant health care needs and gaps in Colorado’s rural and frontier counties, representing more than $1 billion over 5 years
FOR IMMEDIATE RELEASE
December 29, 2025
Media Contact
Marc Williams
Department of Health Care Policy & Financing
720-626-0801 (Cell)
Denver, CO - Today the Colorado Department of Health Care Policy & Financing (HCPF) received notice from the Centers for Medicare and Medicaid Services (CMS) that Colorado will receive just over $200 million for the first period of the grant, December 2025 through September 2027, for its Rural Health Transformation Program (RHTP) to transform health care in Colorado’s rural and frontier counties. This is among the first awards to be allocated to approved states, totalling more than $1 billion to Colorado through federal fiscal year 2030.
“Our rural health care providers help break down barriers to critical care for Coloradans across our state. This new funding will help us strengthen our rural health care system by supporting providers and increasing access to care for everyone in our rural communities,” said Governor Jared Polis.
“We thank the many stakeholders who worked with our Department in a shared effort to bring home $1 billion in federal grants over five years in support of our rural communities. Our shared efforts will drive game-changing improvements across rural care access, innovation, affordability and health outcomes across rural Colorado for generations to come,” said HCPF Executive Director, Kim Bimestefer.
Colorado’s RHTP will serve all 52 rural and frontier counties and the two federally recognized tribes in Colorado. Across all provider types, approximately 13% of health care facilities are located in rural and frontier counties. RHTP will address:
- 23 frontier counties that lack critical specialty care access, including behavioral health, obstetric and gynecology services
- 29 rural counties with the highest rates of chronic disease or preventable hospitalizations
Providers including critical access hospitals and other rural hospitals, rural providers affiliated with Native American and Alaskan Native tribes, Rural Health Clinics, behavioral health providers such as community mental health centers, behavioral health clinics, rural Federally Qualified Health Centers and look-alikes, opioid treatment programs, and emergency medical service providers, who will benefit from investments and strategic partnerships that promote resource sharing to improve administrative efficiencies, affordability and health outcomes - The needs of Colorado’s two tribes. Tribal members experience many of the same barriers to care and environmental factors as their geographical counterparts, as well as their own unique health care dynamics. Preventing and managing chronic health conditions and addressing behavioral health needs, including access to crisis care and substance use treatment, are two areas that have been emphasized by Colorado’s Tribes.
In addition to benefitting rural providers, the RHTP is also designed to support improvements in access to care, as well as the health and well-being of rural Coloradans through initiatives in the following federal grant program priority areas:
- Make rural america healthy
- Sustainable access
- Workforce development
- Innovative care
- Tech innovation
This opportunity directly responds to Colorado’s rural realities, including the fact that rural residents are more likely than residents in urban areas to experience limited hospital access, provider shortages, and long travel distances for specialty care. The RHTP aims to strengthen and improve outcomes for the 800,000 Coloradans who live in 52 rural counties of 64 counties in the state.
“These funds will allow us to strengthen the care we provide to our rural community by sustaining essential services and expanding access where it’s needed most,” said Spanish Peaks Regional Health Center, President & CEO, Kay Whitley. “Our priority is to ensure that every patient in our region can receive high-quality, compassionate care close to home. This investment helps us continue to meet the evolving needs of our neighbors and improve health outcomes for the communities we serve.”
"Colorado's rural hospitals and clinics are essential points of access to quality healthcare. Rural facilities serve over 800,000 people living in Colorado's 52 rural counties,” said Colorado Rural Health Center CEO, Michelle Mills. "We are grateful for this rural transformation funding as it will provide the opportunity to keep essential services local and develop new creative solutions through workforce, technology, and innovation."
“This award is exciting and important news for Colorado. The Rural Health Transformation Program is a major opportunity to strengthen rural and frontier health systems and further integrate behavioral health—ensuring communities across the state can access timely, whole-person care close to home,” said Colorado Behavioral Healthcare Council CEO, Kara Johnson-Hufford. “Behavioral health is a foundational element of overall health, and sustainable rural health systems depend on the integration and inclusion of behavioral health care within the broader continuum of rural health delivery. CBHC and our members look forward to partnering with HCPF and the state to help ensure behavioral health is fully realized in the design and implementation of this transformative effort.”
“The Colorado Community Health Network (CCHN) is happy to see that Colorado will receive more than $200M this year under the Rural Health Transformation Program,” said CCHN VP of Strategy & Financing, Polly Anderson. “With nearly 100 Community Health Center locations in rural and frontier areas, CCHN looks forward to working with the state to drive the transformational change outlined in our state’s application.”
About the Colorado Department of Health Care Policy & Financing: The Department administers Health First Colorado (Colorado's Medicaid program), Child Health Plan Plus, and other programs for Coloradans who qualify. These health care programs now cover about one in four Coloradans. For more information about the Department, please visit hcpf.colorado.gov.