Alaska Receives Federal Funding for Rural Health Care Transformation

FOR IMMEDIATE RELEASE Contact: Shirley Sakaye, DOH, 907-269-4996, Shirley.Sakaye@alaska.gov Alaska Awarded Major Federal Funding to Permanently Transform Rural Health Care December 30, 2025, ANCHORAGE, AK — The State of Alaska has been awarded federal funding through the Centers for Medicare & Medicaid Services’ (CMS) Rural Health Transformation Program (RHTP), a five-year, $50 billion national initiative designed to strengthen, stabilize, and modernize health care systems in rural communities across the country. Alaska is among the top recipients nationwide, reflecting the state’s significant rural population, geographic challenges, and long-standing health care access needs. In each year of the program, Alaska will receive $272,174,856 to support targeted, system-level investments aimed at improving access to care while reinforcing the long-term stability of Alaska’s health care infrastructure. “This investment represents a turning point for rural health care in Alaska,” said Heidi Hedberg, Commissioner of the Alaska Department of Health. “It allows us to expand sustainable access to care, strengthen local providers, and improve health outcomes statewide. Just as importantly, it gives us the opportunity to make strategic, people-centered investments that support health care workers, stabilize critical services, and ensure communities are not left behind as the health system evolves.” The award supports Alaska’s comprehensive strategy by focusing on prevention, chronic disease management, and sustainable access to care as close to home as possible. With more than 75 percent of Alaska adults living with at least one chronic condition, the initiative prioritizes prevention, early intervention, and coordinated care. Key focus areas include:

• Improve remote monitoring and care coordination to help people manage chronic conditions such as diabetes and high blood pressure and prevent serious complications. • Modernize emergency medical services by investing in the workforce and advancing policies such as treat-in-place and alternate destination transport. • Expand access to care through technology and innovation, including telehealth, remote monitoring and emerging digital tools aligned with CMS standards. • Increase access to care for vulnerable populations, including high-risk maternity patients and people with behavioral health or substance use disorders. • Build health care workforce pathways that create pipelines for high school students and offer opportunities for Alaskans to upskill, reskill and advance their careers. • Support sustainable care models, including value-based payment approaches and stronger coordination across systems of care. Expected outcomes include: • Reduce urban-rural disparities in maternal and infant health outcomes. • Expand access to culturally aligned, community-based health care. • Increase participation in chronic disease prevention programs such as Alaska’s Fresh Start initiatives. • Grow provider participation in alternative payment models, telehealth, and emerging technologies. In addition, Alaska will evaluate any relevant policies and updates that may need to be made in order to support long-term system change. The Alaska Department of Health developed the successful application incorporating feedback from Tribal partners, health care providers, community organizations, and stakeholders across the state to ensure the program reflects Alaska’s unique needs and strengths. Additional details on funding distribution, implementation timelines, and partner opportunities will be released in the coming weeks. For the most up-to-date information, visit the Alaska Department of Health website. # # #