During a recent webinar hosted by Newsweek, key figures from Sanford Health, InterSystems, and Lumeris examined the $50 billion Rural Health Transformation Fund. This fund’s implementation has led to a mix of optimism and realistic assessment as some states show progress and funding starts reaching providers after three months.

Dr. Tim Ferris from InterSystems offered a critical perspective, noting a major misconception about the fund. According to Dr. Ferris, the initiative is not solely about preventing the closure of rural hospitals. He highlighted the economic pressures from Medicare and Medicaid, which pay less than the actual hospital costs.

“It is not about saving rural hospitals in America, full stop,” said Ferris. “The underlying economic issues are driven by the fact that Medicare and Medicaid pay less than hospitalization costs.”

Ferris suggested that the success of the fund should be gauged by improvements in access to care, information sharing, and care delivery, rather than by hospital closures alone. This program, he argued, tackles different problems than the reimbursement issues threatening rural facilities.

Data from Chartis’ 2026 rural health report highlights the challenges faced. Over 40% of rural hospitals currently operate at a loss, with 417 at risk of closure. More than 200 have closed or reduced inpatient services since 2010. The RHTF aims to inject $50 billion into rural healthcare over five years, focusing on transformation, not just revenue replacement.

Matt Hocks of Sanford Health echoed this view. He sees the fund as an opportunity to reevaluate rural care, not just as a rescue package for hospitals. For Sanford, investments in technology are crucial. The goal is to keep care local and not transfer patients to distant facilities.

“We don’t want to build more hospital beds in major centers,” Hocks said. “We want people to stay local. Technology and virtual care make that possible.” This includes stronger support for rural clinicians.

Dr. David Carmouche from Lumeris expanded the discussion to include access, workforce, and technology, considering them inseparable. “Patients don’t experience infrastructure,” he said. “They experience how infrastructure gets leveraged.” The aim is better health outcomes with accessible, quality care.

Infrastructure improvements became a central theme of the webinar. Many rural hospitals, due to tight margins, struggle to prioritize technology upgrades. Hocks mentioned technology often gets addressed only when it fails, hindering advancements such as virtual nursing and cybersecurity.

“Usually technology is the last thing we address,” Hocks said. “We let it run until it breaks and then we fix it.”

Ferris compared this opportunity to the HITECH Act, which rapidly advanced EHR adoption. He emphasized the need for interoperability, scalability, and reducing data friction from the outset.

Artificial intelligence repeatedly emerged as an enhancement to the digital foundation. Carmouche envisions AI using real-time patient data to monitor and assist, extending the capacity of existing rural staff. “The access to real-time data and AI’s power allows care delivery to more people with the same workforce,” he said.

Hocks noted behavioral health as an area where technology might have an immediate impact. “The missing link is really that ability to connect with those patients,” he said. AI and chatbots could improve patient interaction.

Despite the focus on technology, Dr. Ferris cautioned that it won’t solve the financial challenges alone. He stressed the distinction between transformation efforts and the need for payment reform. While the fund can enhance care delivery, it won’t reverse long-standing economic pressures.

The fund’s success may not be about how many hospitals stay open. The fundamental question is whether patients receive better care close to home, clinicians have timely information, and technology efficaciously extends their capabilities. These are the metrics the Rural Health Transformation Fund seeks to improve.