Reeves establishes Mississippi office for Rural Health Transformation Program funds

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Gov. Tate Reeves on Wednesday announced he’s creating an office to oversee distribution of hundreds of millions of federal dollars aimed at improving rural healthcare.

The new office will be overseen by the governor and led by certified public accountant Richard Grimes. Reeves also unveiled a website he said will provide the public with a transparent and accessible view of the state’s initiatives, funding opportunities and progress.

“This is a massive step forward for healthcare in Mississippi,” Reeves said in a press release. “By establishing a dedicated office and launching this website, we are putting the structure and transparency in place to deliver real, lasting improvements for our rural communities.”

In December, Mississippi was awarded nearly $206 million as part of the federal Rural Health Transformation Program. States will receive payments over five years as a part of the $50-billion program. The effort was designed to support rural healthcare and offset the disproportionate impact already-struggling rural hospitals are expected to face as a result of federal spending cuts Congress passed last summer.

Reeves’ office led the state’s application for the federal funds last fall and is overseeing distribution of the money. Mississippi’s plan includes a statewide rural health assessment and other initiatives that focus on coordinating care, strengthening the workforce, creating a statewide health information exchange, expanding telehealth opportunities and improving infrastructure.

Some state legislators have expressed frustration at the limited role they have played in the application and appropriation of the funds and criticized what they see as Reeves’ lack of transparency in administering the program.

“If you haven’t received a personal invitation from the governor, you have no input at all,” Senate Public Health Chairman Hob Bryan, a Democrat from Amory, previously said to Mississippi Today.

Lawmakers passed an oversight bill in March to ensure the program’s funding is directed toward rural communities and require the spending be reported to the Legislature. Reeves vetoed the bill, arguing it could jeopardize the state’s access to the money by slowing down its distribution and potentially result in a loss of up to $1 billion over five years. Lawmakers failed to override his veto.

In a Wednesday press release, Reeves said the funding will be subject to oversight from the Centers for Medicare and Medicaid Services and federal procurement regulations.

“Governor Reeves and his staff worked to address and push back on proposed state legislation that could have introduced unnecessary complexity or slowed implementation, ensuring the State remains well-positioned to execute its vision effectively,” the press release said.

States’ program budgets are currently being reviewed by CMS. Mississippi’s budget has not yet been approved, according to the state’s program website.

According to the website, information about how to apply for funding will be posted once details are finalized. The $206 million awarded to Mississippi last year by the federal government must be spent by September 2027 or it will be redistributed to other states, according to CMS.

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This story was originally published by Mississippi Today and distributed through a partnership with The Associated Press.