OFFICE OF THE GOVERNOR  
Governor Kim Reynolds ★ Lt. Governor Chris Cournoyer   
  
FOR IMMEDIATE RELEASE: Friday, January 30, 2026  
MEDIA CONTACT: Mason Mauro, (515) 745-2840, [email protected] 
  
Iowa first in the nation to award Rural Health Transformation Program funding 
—State announces intent to award $78.6M in federal funds that support Iowa’s Healthy Hometowns Project— 
DES MOINES—Governor Kim Reynolds and the Iowa Department of Health and Human Services (HHS) today announced the intent to award more than $78.6 million in funding through two competitive Requests for Proposals (RFPs) as part of the Iowa Healthy Hometowns Project, funded by the Centers for Medicare & Medicaid Services’ Rural Health Transformation Program. Iowa was awarded a total of $209 million for the first year of the federal program and is the first state in the nation to award funding for its project initiatives. 
“These investments represent a major step forward in ensuring that rural Iowans have access to high-quality health care services and providers,” said Governor Reynolds.  “Through Iowa’s Rural Health Transformation Program, Healthy Hometowns, we are building stronger, healthier communities across the state.” 
The first grants awarded specifically support the Hometown Connections initiative, part of the state’s Healthy Hometowns Project, which focuses on building partnerships to restructure health care delivery options for rural communities. The grants will fund medical equipment procurement and installation, and support health care workforce recruitment. Additional RFPs for Healthy Hometowns initiatives are forthcoming.  
Medical Equipment Procurement and Installation (RFP #PHTHORC26009)
This award supports rural organizations in Iowa to procure and install essential medical equipment, including minor alterations and renovations where necessary. The goal is to introduce new lines of service not currently available in rural regions and strengthen the sustainability of high-quality healthcare delivery. The list of awardees is posted on the Iowa HHS website. 
  
Estimated Total Award Amount: $66,002,161.76 
 
Examples of Equipment Awarded: 
  • Imaging Systems: Multiple MRI systems, CT scanners, PET/CT systems, nuclear imaging (SPECT), digital X-ray systems, and a digital mammography unit with advanced imaging and compliance features. 
  • Robotic Surgical Systems: Multiple da Vinci 5 robotic systems (single and dual console), Mako Robotic-Arm Assisted Surgical System, Ion Robotic Bronchoscopy System. 
  • Other Advanced Equipment: Linear Accelerator for radiation therapy and Olympus Endoscopy System. 
  
Health Care Workforce Recruitment (RFP #PHTHORC26010) 
This award enables rural healthcare organizations to recruit highly skilled providers by offering competitive incentives such as recruitment bonuses, relocation assistance, and other measures to make rural practice attractive and sustainable. Providers will deliver in-person, full-time care in rural Iowa communities. The list of awardees is posted on the Iowa HHS website. 
  
Estimated Total Award Amount: $12,600,000.00 
 
Examples of Positions Awarded: 
  • Physicians: Family Medicine, Internal Medicine, Pediatrics, Emergency Medicine, Obstetrics/Gynecology, Psychiatry, General Surgery, and Cardiology. 
  • Advanced Practice Providers: Nurse Practitioners, Certified Nurse Midwives, Certified Registered Nurse Anesthetists. 
  • Physician Assistants: Primary Care, Pediatrics, Surgical specialties. 
  • Registered Nurses: Clinical, OB, Oncology, Emergency Department, and specialized care roles. 
  • Specialty Providers: Radiology and Behavioral Health. 
  
Iowa’s Rural Health Transformation Program, Healthy Hometowns, is supported by the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $66,002,161.76 and $12,600,000.00 with 100 percent funded by CMS/HHS. 
  
For more information about the Hometown Connections initiative, visit the Iowa Healthy Hometowns Project webpage.
 
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