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NC Expands Rural Health Services with $1.25M Funding for Schools

Significant Boost for Rural Health Care in North Carolina with $1.25 Million Federal Grant

The North Carolina Department of Health and Human Services, alongside Governor Josh Stein, has announced the allocation of $1.25 million in federal funding aimed at enhancing health care services across rural areas in the state. This initiative, executed through the North Carolina Rural Health Transformation Program, will bolster health care access by distributing funds to five regional organizations.

Notable beneficiaries of this funding include the Appalachian District Health Department, Blue Ridge Community Health Services, First Health of the Carolinas, Mountain Community Health Partnership, and Wilson County Health Department. Governor Stein emphasized the importance of this investment, stating, “This investment will bring critical health care directly to students in rural North Carolina. For many young people struggling with their mental health, having these resources at school can make all the difference.”

Currently, about 20% of public school students utilize mental health services available at school-based centers. Approximately 30,000 children and youth are served by 90 such centers throughout North Carolina. The new funding aims to expand these services in underserved rural areas, leveraging telehealth, mobile units, and increased capacity at existing sites.

Dev Sangvai, the NC Health and Human Services Secretary, highlighted, “As we work to build a coordinated system that increases access to care for everyone in North Carolina, it is critical we reach people where they are, and for children, that is in their schools. This investment will remove barriers to care in rural communities, ensuring more children get resources and services they need.”

The Rural Health Transformation Program is supported by over $213 million in federal funding from the U.S. Centers for Medicare & Medicaid Services, aimed at addressing challenges in rural health care access. With North Carolina hosting the second-largest rural population in the U.S., the initiative is poised to significantly impact the state’s health care landscape over the next five years.

The program’s behavioral health expansion initiative is a crucial element, focusing on ensuring rural communities have access to necessary care. The funds will support the development of school-based health centers, mobile care facilities, and additional health care personnel to meet growing mental health demands. Maggie Woods, the NCRHTP Director, remarked, “School-based health centers provide vital access to comprehensive, coordinated, and preventive health care through direct services and programs or through referrals to other primary care providers.”

Eligible applicants for the grant needed to maintain an active agreement with the NCDHHS Division of Child and Family Well-Being, offer a School Health Center Program, and operate in regions with limited access to health professionals.

Despite the enthusiasm surrounding this funding, North Carolina faces challenges due to potential funding reductions under federal reconciliation law H.R. 1. This includes a projected $50 billion loss in federal Medicaid funds and essential hospital funding over the next decade. NCDHHS remains committed to advocating for additional resources to support the state’s rural health care infrastructure.

For further details on the North Carolina Rural Health Transformation Program and participation opportunities, visit the NCDHHS NCRHTP webpage. To stay updated, you can also subscribe to the NCRHTP Newsletter.

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Stevens Amendment Disclosure: This news release is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $213,008,356.47 with 100% funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS or the U.S. Government.

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