| Read this in your browser August 7, 2025 What's New HRSA Announces New 340B Rebate Model Pilot Program – Apply by September 2. On July 31, the Health Resources and Services Administration (HRSA) announced a 340B Rebate Model Pilot Program for drugs on the Centers for Medicare & Medicaid Services' (CMS) Medicare Drug Price Negotiation Selected Drug List for the year 2026 from qualifying manufacturers meeting specific criteria. HRSA's Office of Pharmacy Affairs, which currently oversees the 340B Drug Pricing Program, is inviting selected drug manufacturers to apply for participation in the pilot program for a minimum of one year. HRSA is implementing the program to better understand the merits and shortcomings of the rebate model from the perspective of affected stakeholders, and to help shape future 340B rebate models that align with 340B statue and the Administration's goals. Organizations may submit Rebate Model Pilot plan and/or provide comments by September 2, 2025, by visiting the 340B Program Notice: Application Process for the 340B Rebate Model Pilot Program Federal Register Notice. Get Ready for the 2025 National Shortage Designation Update. Health Professional Shortage Areas, also known as HPSAs, can be geographic areas, populations, or facilities that have a shortage of primary, dental, or mental health care providers. The designations are to determine eligibility for programs like the National Health Service Corps, Nurse Corps, and other programs; they're also used by the Centers for Medicare & Medicaid Services and other Health & Human Services programs to determine where resources and support are needed. HRSA's Bureau of Health Workforce intends to update the designations and publish new HPSAs on September 23, 2025. They provide useful resources to help federal, state, and local officials prepare: USDA Summer Meals Site Finder 2025. The U.S. Department of Agriculture (USDA) recently updated its map of locations with meals and snacks available to every child aged 18 and under. In addition to eat-on-site Summer Meals, some rural communities now offer meals for pick-up or delivery through SUN Meals-to-Go, and eligible school-aged children can also receive SUN Bucks. USDA Rural Development Awards Nearly $3 Million for America's Healthy Food Financing Initiative (HFFI). The HHFI is a public-private partnership that provides grants, loans, and technical assistance to improve access to healthy food in low-income communities. The latest investment provided financial assistance to 14 food retail and food retail supply chain projects across 14 states through the Food Access Retail Expansion (FARE) Fund. Fifty percent of projects are located in rural areas and 29 percent of projects serve Very Low-Income Areas. The HHI FARE Fund is administered by Reinvestment Fund on behalf of the U.S. Department of Agriculture. (See Ongoing Opportunities below.) They are currently accepting funding inquiries for implementation grants. Check for eligibility and submit a Funding Inquiry form by August 18. Applications for loans and technical assistance are accepted on a rolling basis. Policy Updates Send questions to ruralpolicy@hrsa.gov. FY 2026 Medicare Hospital Inpatient Prospective Payment System Final Rule. On July 31, the Centers for Medicare & Medicaid Services (CMS) issued a final rule that updates Medicare payment policies and rates for inpatient and long-term care hospitals under the Medicare hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital Prospective Payment System (LTCH PPS) for fiscal year (FY) 2026. The increase in IPPS operating payment rates for general acute care hospitals that successfully participate in the Hospital Inpatient Quality Reporting (IQR) program and are meaningful electronic health record (EHR) users under the Medicare Promoting Interoperability Program is 2.6 percent. This rule also finalizes changes to the Medicare Readmissions Reduction Program, the Value Based Purchasing Program, the IQR program, and the Interoperability Program. These regulations are effective October 1, 2025. FY 2026 Skilled Nursing Facility Prospective Payment System Final Rule – Effective October 1, 2025. On July 31, the Centers for Medicare & Medicaid Services (CMS) issued a final rule with updates to Medicare payment policies and rates for skilled nursing facilities under the Skilled Nursing Facility Prospective Payment System (SNF PPS) for fiscal year (FY) 2026. In this final rule, CMS is updating SNF PPS by 3.2% which increases SNF PPS payments to $1.16 billion. CMS is also finalizing its proposal to amend the reconsideration policy and process that will allow SNFs to request an extension to file a reconsideration for 1) reconsideration regarding SNF Quality Reporting Program (QRP) compliance or 2) Reconsideration regarding Medicare coverage of SNF service. CMS also summarized feedback received on several requests for information included in the FY 2026 SNF PPS proposed rule. Health Data, Technology, and Interoperability: Electronic Prescribing, Real-Time Prescription Benefit and Electronic Prior Authorization (HTI-4) Final Rule – Effective October 1, 2025. On July 31st, 2025, the Assistant Secretary for Technology Policy/ Office of the National Coordinator for Health Information Technology (ASTP/ONC) finalized the HTI-4 final rule, which adds several new certification criteria and related standards to the ONC Health IT Certification Program. Specifically, the rule finalizes the use of certified EHRs to submit prior authorizations, select drugs consistent with a patient's insurance coverage, and exchange electronic prescription information with pharmacies and insurance plans. These updates were originally proposed in the HTI-2 NPRM released in August 2024 and were finalized as part of the FY2026 CMS Hospital Inpatient Prospective Payment System (IPPS) final rule (CMS-1833-F). This regulation is effective October 1, 2025. FY 2026 Inpatient Rehabilitation Facilities Final Rule – Effective October 1, 2025. On August 1st, the Centers for Medicare & Medicaid Services (CMS) issued a final rule for the fiscal year (FY) 2026 Inpatient Rehabilitation Facility (IRF) Prospective Payment System which updates the market basket, wage index, outlier threshold, and prospective payment rates for an overall payment increase of 2.6%. CMS estimates these updates will result in an overall increase of $340 million in aggregate IRF payments for FY 2026. This final rule includes updates to the IRF quality reporting program, including the removal of two quality measures as well as future public reporting associated with these measures, the removal of four Social Determinant of Health (SDOH) standardized patient assessment data elements, and the amendment of the reconsideration policy and process. These regulations are effective October 1, 2025. CMS Announced Plans to Modernize the Nation's Digital Health Ecosystem. Last week the Centers for Medicare & Medicaid Services (CMS) announced the creation of the CMS Digital Health Ecosystem. This announcement builds on the May 2025 request for information (RFI) issued jointly by CMS and the Assistant Secretary for Technology Policy (ASTP) to solicit suggestions from stakeholders on ways to modernize the nation's digital health ecosystem. Drawing from the near 1,400 comments received from the RFI, CMS is calling on the healthcare industry – data networks, Electronic Health Record (EHR) systems, health app developers, providers, and innovators – to voluntarily align around a shared framework for data and access that empowers people, improves care, and accelerates progress. CMS will launch key public infrastructure like the National Provider Directory, enabling modern identity on Medicare.gov, and expanding data-sharing capabilities. FY 2026 Inpatient Psychiatric Facilities Prospective Payment System Rate Update – Effective October 1, 2025. On August 5, the Centers for Medicare & Medicaid Services (CMS) released the Inpatient Psychiatric Facility (IPF) Prospective Payment System final rule. This final rule updates the prospective payment rates, the outlier threshold, and the wage index for Medicare inpatient hospital services provided by IPFs, which include psychiatric hospitals and excluded psychiatric units of an acute care hospital or Critical Access Hospital. This final rule also revises the payment adjustment factors for teaching status and for IPFs located in rural areas. These changes will be effective for IPF discharges occurring during the fiscal year beginning October 1, 2025, through September 30, 2026. Approaching Deadlines HHS Revised the Interpretation of "Federal Public Benefit" – Comment by August 13 USDA America's Health Food Financing Initiative – FARE Fund – Submit Funding Inquiry by August 18 CMS Seeks Input on the Estimated Burden to Meet Emergency Preparedness Requirements – Comment by August 19 Rural Hospital Stabilization Program – Fall 2025 Cohort – August 20 VA Grants for Transportation in Highly Rural Areas – NEW Applications – August 23 VA Grants for Transportation in Highly Rural Areas – Renewing Applications – August 23 ACL Alzheimer's Disease Programs Initiative - Dementia Capability in Indian Country – August 25 CMS Proposed Rule for CY 2026 End Stage Renal Disease Prospective Payment System – Comment by August 29 CMS Rate Update for CY 2026 Home Health Prospective Payment System – Comment by August 29 CMS Proposes New Mandatory Alternative Payment Model, the Ambulatory Specialty Model (ASM) – Comment by September 12 CMS Proposes Updates to Medicare Physician Fee Schedule Payments – Comment by September 12 CMS Proposes Updates to Medicare Hospital Outpatient Prospective Payment System – Comment by September 15 Ongoing Opportunities - Updated August 2025 Bold indicates HRSA- and/or FORHP-funded opportunities. Administration for Children & Families: Low Income Home Energy Assistance Program Cybersecurity & Infrastructure Security Agency – Technical Assistance for Rural EMS Communications Delta Regional Authority: Community Infrastructure Fund Delta Region Community Health Systems Development Program General Services Administration: Federal Surplus Property Available for Public Use HRSA Needs Rural Reviewers for Grant Applications HRSA National Health Service Corps Medications for Opioid Use Disorder Training HRSA Look-Alike Initial Designation for the Health Center Program Indian Health Service/Department of Defense: Medical Supplies and Equipment for Tribes (Project TRANSAM) Licensure Portability: The Multi-Discipline Licensure Resource Project National Rural Health Resource Center: Rural Hospital Stabilization Program ProviderBridge: Mobilizing Health Care Workforce via Telehealth Rural Graduate Medical Education Planning and Development Small Business Administration Guaranteed Loans for Small Business Small Business Administration Rural Initiative Pilot Program Substance Abuse and Mental Health Services Administration/Federal Emergency Management Agency/: Post-Disaster Crisis Counseling Assistance and Training Program Targeted Technical Assistance for Rural Hospitals Program USDA: National School Lunch Afterschool Snack Program USDA: Summer Food Service Program USDA/National Rural Health Association: Rural Hospital Technical Assistance USDA Rural Development: America's Healthy Food Financing Initiative USDA Rural Development: Circuit Rider Program – Technical Assistance for Rural Water Systems USDA Rural Development: Community Facilities Program USDA Rural Development: Emergency Community Water Assistance Grants USDA Rural Development: Grants for Rural and Native Alaskan Villages USDA Rural Development: Intermediary Relending Program – Ongoing with deadlines every quarter USDA Rural Development: Multifamily Housing Loan Guarantees USDA Rural Development: Rural Business Investment Program USDA Rural Development: Rural Energy Savings Program USDA Rural Development: SEARCH – Special Evaluation Assistance for Rural Communities and Households (for Water/Waste Projects) USDA Rural Development: Telecommunications Infrastructure Loans and Loan Guarantees U.S. Department of Transportation: Rural Opportunities to Use Transportation for Economic Success (R.O.U.T.E.S) U.S. Environmental Protection Agency: Drinking Water State Revolving Fund U.S. Department of Veterans Affairs: Physical Therapy Telehealth Research Study for Older Veterans – Ongoing until October 2026 | 
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