Wyoming is eligible to receive between $500 to $800 million in federal dollars over the next five years. The funds are part of the new Rural Health Transformation Program created in the One Big Beautiful Bill Act (OBBA). The Wyoming Department of Health (WDH) is asking for public input on how the funds should be spent.
How we got here
Many healthcare stakeholders spoke out against the passage of the OBBA, saying it would have a domino effect on the state’s fragile healthcare system. But Sen. John Barrasso (R-WY) stood behind the act, pointing to the Rural Health Transformation Program as helping with potential impacts.
“Republicans strengthened healthcare, especially in rural communities. There is a Rural Hospital Fund. This directly supports our Wyoming clinics and hospitals,” said Barrasso on the Senate Floor.
The fund is the Rural Health Transformation Program. It appropriates $50 billion from 2026 to 2030 to help rural hospitals. Wyoming Hospital Association Director Eric Boley said hospitals in Wyoming are still studying how this funding will be distributed, “but it could have a positive impact on our rural hospitals.”
Half of the funds will be divvied up evenly among states that submit an application, and the other half will be awarded to states that outline a “detailed rural health transformation plan” and are approved by the Centers for Medicare and Medicaid Services administrator. The submission deadline is early November.
Funds could go out as early as Dec. 31. The funds will be distributed annually for five years.
The hope
The Wyoming Department of Health is looking at the potential funds positively.
“ I think Wyoming could see a lot of upside from this opportunity to address some more systemic challenges that our executive branch and our Legislature have been grappling with,” said Director Stefan Johansson.
The program states that the money will “transparently and efficiently transform rural health access.” It will do that by providing funding to make rural healthcare more effective and sustainable for the long term.
“States must submit detailed rural health transformation plans for improving access to community healthcare providers and ultimately improving health outcomes. CMS will monitor implementation and hold states accountable to this plan to ensure resources are delivered to the most deserving care providers and their patients, not the most politically well-connected,” reads the White House memo.
Johannson said the money could address many of the challenges the state faces, like a limited insurance market, the financial sustainability of hospitals in small communities, critical access hospitals, emergency care, maternity care, emergency medical services or higher acuity behavioral health services.
“ I find this to be just a really unique opportunity,” said Dr. Tracey Haas, the WDH’s medicaid medical director. “I look forward to coming up with some flexible approaches that can help us support our primary care physicians, also looking at preventive care and community health. Rethinking some of our traditional payment structures and care delivery structures. I think we've got some real opportunity to dive into that. Unfortunately, we have so many small hospitals and clinics that are stretched thin and relying on some unstable payment streams. So hopefully, we'll be able to kind of rethink these and make sure that it works for patients, doctors, and the entire community.”
According to Wyoming Hospital Association Director Eric Boley, out of the 30 hospitals in the state, only five have a net margin.
Community input
While the application details are still not clear – WDH is expecting more guidance mid-September – Johansson said the department wanted to get ahead of the timeline and get input from stakeholders as to what they see as the most important challenges to target.
“What are areas of access that are really high in demand, but you just don't have the scale or that particular service or that particular infrastructure in your area?” Johansson said.
Hass followed up, “We want to hear about any issues with traveling, long distances, workforce shortages, things that people are seeing in their communities, even aging infrastructure. We're aware of a lot of that, but we want to know what people feel is really top of mind in their community.”
Hass said the department will use public comments to try to create sustainable solutions. The department will then apply for the federal money, outlining those solutions.
There will be a virtual meeting on Sept. 23 at 10 a.m. and Sept. 25 at 2 p.m.
The scheduled community meetings are as follows:
Sept. 12
- Newcastle: Weston County Library at 12 p.m.
- Wheatland: Platte Valley Bank at 6 p.m.
Thursday, September 18, 2025
- Powell: Powell City Council Chambers at 12 p.m.
- Buffalo: Bomber Mountain Civic Center Small Gym at 7 p.m.
Sept. 30
- Lander: Fremont County Library at 12 p.m.
- Evanston Middle School Auditorium at 6 p.m.
Oct. 1
- Saratoga: Platte Valley Community Center Great Hall at 5 p.m.
Oct. 2
- Laramie: UW Student Union at 6 p.m.
