More Money for Rural Hospitals in Medicare Flex Program
Published Date: 9/10/2026
Notice
Summary
HRSA is providing additional fiscal year 2026 funding under the Medicare Rural Hospital Flexibility (Flex) Program using the program's established funding methodology, including a baseline increase for all recipients and an additional adjustment for states with newly designated Critical Access Hospitals (CAHs). This funding will support state efforts to strengthen CAHs, improve quality and performance, and sustain access to essential rural health care services.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Flex Program Funding Formula Boost
If you rely on rural Critical Access Hospitals (CAHs), the Medicare Rural Hospital Flex (Flex) Program will receive a baseline 2.5% funding increase for all 45 Flex recipients for fiscal year 2026, plus an additional 5% increase for each newly designated CAH in a state. HRSA says these increases are to help strengthen CAHs, improve quality and sustain rural health care services.
Two State Awards: AL and TX
If you live in rural areas of Alabama or Texas, your state received non-competitive Flex awards totaling $620,742 for the period September 1, 2026 to August 31, 2027 — Alabama $146,403 and Texas $474,339 — to support CAHs and sustain rural health care services.
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Key Dates
Department and Agencies
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