Alaska's fall round of rural health transformation money will be smaller and exclude renovations, Hedberg says

Alaska's next round of federal rural health transformation money will be smaller than the one coming in the spring and won't pay for facility renovations, state Health Commissioner Heidi Hedberg told applicants in an Oct. 2 webinar.

The federal Rural Health Transformation Program gave Alaska about $272 million in its first year through the Centers for Medicare & Medicaid Services. Hedberg said the state received almost 1,800 ideas worth about $2.5 billion when it opened the process in February, and about $500 million in applications. Many good applications passed review but went unfunded because the needs exceed the money available, she said.

For the fall cycle, the Alaska Department of Health is targeting about $75 million. The spring cycle will be much larger, Hedberg said. Organizations that want money for facility renovations, and those with first-year awards seeking a second year, have to wait for spring.

Construction is never allowed, Hedberg said, and many first-year applications asked for it anyway.

This fall, the department is focusing on three areas: helping clinics and hospitals get ready for pay-for-value payment models, care coordination for patients leaving the hospital, and emergency medical services. Projects outside those areas can still apply through an open call, and focus-area projects get no extra points, Hedberg said.

The department has dropped the letter-of-interest step that applicants said made the first round too long. Applicants turned down in the first year must apply again, and the department's five-person team doesn't have the capacity to give individual feedback, Hedberg said. Organizations can submit up to five applications. "Do not read that as submit 5," she said, urging applicants to look at the gaps in their community's or region's health care system.

The state won't know its second-year federal award until the end of October, Hedberg said. The amount will depend on whether Alaska is meeting the milestones in its plan.

Final scoring criteria are due Oct. 14, and Hedberg advised applicants to wait for them before submitting. Applications are due Oct. 28. Hedberg told the webinar the portal would close at 11:59 am that day, while the department's applicant page lists 11:59 pm.