HEALTHCARE
NM to distribute $76M for rural healthcare access
The New Mexico Health Care Authority will fund six regional organizations to expand virtual care and reduce long wait times for the roughly one-third of New Mexicans living in rural areas.
The New Mexico Health Care Authority will soon distribute about one-third of the federal funding it recently received through the 鈥淥ne Big Beautiful Bill Act鈥� to address shortfalls in rural healthcare in the state.
The authority announced this week it will provide $76.2 million to six 鈥渞egional hub organizations鈥� that help communities implement rural healthcare projects as part of its Health Horizons program.
When fully implemented, the program aims to reduce long wait times, chronic disease risk factors and readmission rates to rural hospitals 鈥� all problems that plague roughly one-third of New Mexicans who live in rural areas.
The funding recipients won鈥檛 provide care directly, according to the Health Care Authority, but instead will try to increase virtual consultations, especially for specialty and maternal care, as well as expand the use of rotational clinics in areas lacking healthcare access..
New Mexico and all other states last November as part of the federal Rural Health Transformation Fund. The state received a little more than $211 million, which is the 13th highest amount in the country.
The state鈥檚 application noted that 26 of New Mexico鈥檚 33 counties are rural, and their residents tend to have higher rates of heart disease, diabetes and chronic respiratory disease than their urban counterparts, while often being forced to travel between 50 and 100 miles for basic healthcare services.
Eight of 27 rural New Mexico hospitals risk closing, according to a 2025 analysis the application cited, with four facing 鈥渋mmediate risk [of closure] absent intervention.鈥� Four other federally qualified health centers have closed in recent years, as well.
The Healthy Horizons is one of five initiatives for which the state received federal funding. Others aim to increase the number of community health programs; train more healthcare workers; reduce financial strain on hospitals; and establish a rural health data-sharing platform.
Despite the new wave of federal funding totaling $50 billion over the next five years, show the 鈥淥ne Big Beautiful Bill Act鈥� will cut rural Medicaid spending overall by $137 billion over the next decade, including $3.54 billion in New Mexico.
Elisa Wrede, the HCA鈥檚 acting rural health director, was not available for an interview with Source NM last week, according to a spokesperson, though she said in a statement that the Health Care Authority is 鈥渋nvesting in regional partners who can bring providers, Tribal health programs, community organizations, public health leaders, and others together to improve access to care in practical ways.鈥�
Applications for the funding, which will be distributed to each regional hub based on healthcare need and readiness, are due by July 2, according to the authority. Recipients must use at least 90% of the funding to support local healthcare projects.
