Health systems in rural America are struggling.

Many are losing money in over the past decade more than 100 have closed.

During the debate over the one big, beautiful budget bill,

some lawmakers expressed concern that Medicaid cuts would threaten rural health systems,

which rely on those payments to keep their doors open.

Rural providers, especially our rural hospitals and nursing homes,

are under great financial strain right now.

When these facilities close their doors,

the people they serve are often left behind without access to health care.

To address those Medicaid shortfalls, Congress approved one of the single biggest investments in rural health,

a $50 billion rural health transformation fund. Applications for the fund were due this week.

Allie Rogan spoke with Carrie Cochran McLean, chief policy officer for the National Rural Health

Association, about how states hope to use the money.

Carrie, welcome to the program. First, can you remind us why this rural health fund was

included in this budget bill?

Well, when we first started talking about the changes to Medicaid that would have significant impact

on the not only coverage of individuals living across the country, but the providers who care for them.

So as the analysis and the debate continued in Congress, we realized that rural hospitals

would be disproportionately impacted.

Given that about half, if not a little more, of the rural hospitals in this country operate

with negative margins, they really don't have the room to take additional cuts that were

being proposed in the Medicaid

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