A handful of organizations throughout New Mexico have a tough task ahead: They will lead a new effort to improve healthcare in rural, frontier and tribal communities.
They’ll receive a combined $74 million in federal funds to make that happen, the state Health Care Authority announced earlier this month.
The initiative, called Healthy Horizons, is part of the Rural Health Transformation Program, a $50 billion program created by the 2025 federal budget reconciliation bill — which will also slash Medicaid funding over the next decade — and intended to bolster healthcare in rural communities across the U.S. over the next five years.
“We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home,” U.S. Health and Human Services Secretary Robert F. Kennedy Jr. said in a news release announcing New Mexico’s Healthy Horizons awards. “We are giving states the flexibility to build solutions around the people they serve, while demanding accountability for results.”
New Mexico was awarded $211.5 million for the first year of the Rural Health Transformation Program. The state has requested a total of $1 billion over the course of the five-year program.
Now, it’s time to start dividing up that money.
The program is expected to expand specialty, maternal health and behavioral health care, as well as chronic disease management services, in rural communities through both in-person and remote options.
Regional hub organizations will work with local providers and community organizations to identify needs, set priorities and develop plans to improve access to care. However, their budgets and implementation plans must be approved by the state Health Care Authority before they can start spending.
“Healthy Horizons is built around the idea that rural communities know their needs best,” said Elisa Wrede, acting rural health director at the Health Care Authority. “These regional leads will bring local partners together, identify gaps in care and help develop solutions that meet the needs of their communities.”
Here’s where the regional hubs will be located and how much they’re getting:
- Cibola General Hospital and Gallup Community Health, up to $12.1 million to serve San Juan, McKinley, Sandoval and Cibola counties.
- University of New Mexico, up to $9 million to serve Santa Fe, Los Alamos, Rio Arriba and Taos counties.
- UNM, up to $10.2 million to serve Bernalillo, Valencia and Torrance counties. The award includes $1.4 million for statewide maternal health planning.
- Eastern Plains Council of Governments, up to $7.9 million to serve San Miguel, Mora, Guadalupe, Colfax, Union, Harding and Quay counties.
- Gila Regional Medical Center in Silver City, up to $15.2 million to serve Catron, Grant, Hidalgo, Socorro, Sierra, Luna and Doña Ana counties.
- Nor-Lea Hospital District in Lovington, up to $19.7 million to serve Lincoln, Otero, De Baca, Chaves, Eddy, Curry, Roosevelt and Lea counties.
The plan isn’t free from criticism. During a Legislative Finance Committee meeting Tuesday, Rep. Rebecca Dow, a Republican from Truth or Consequences, questioned why the state doesn’t just give the money directly to critical access hospitals.
Rural hospitals will be among the hardest hit by Medicaid cuts from the 2025 federal reconciliation bill — a loss in revenue the Rural Health Transformation Program won’t come close to replacing, according to estimates from the Congressional Budget Office. The Health Care Authority has predicted the Medicaid cuts could result in the closure of six to eight New Mexico hospitals.
“We’re one of the states … that isn’t giving the money directly to hospitals but instead creating hubs and admin and, well, I’ll just call it bureaucracy,” Dow said.
She continued, “What was the reasoning behind giving money that’s meant to stabilize and keep rural hospitals open … to UNM?”
Margaret O’Hara reports on issues affecting healthy communities in New Mexico. Her work is funded by a grant from Anchorum Health Foundation. Anchorum will not have any role in editorial decisions. The New Mexican and its Public Service Journalism Fund retain full editorial control. Philanthropically funded stories by The New Mexican are made available to all readers without a paywall.
