Sep 28, 2026 · 24 min · 12 segments
Texas put its first Rural Texas Strong dollars into Make Rural Texans Healthy Again - and buried in the fine print is a pay-for-performance structure that reserves most outcome-based payments for…
Eric MarrHost
They're older, they have lower incomes, and they carry higher rates of chronic illness and disability.

And a CDC analyst in Texas found that many of the highest prevalence rural counties in East Texas had no diabetes prevention program site in the county or, frankly, in the next county over.

So it's not an accident that Initiative 1, Make Rural Texans Healthy Again, was the first initiative to really move money in an active way.

In April, the governor and HHSC announced $60 million in initial funding for rural hospital districts.

And Budget Period 1 set aside roughly $116 million for this initiative, the largest slice of the first-year award.

When the state's top health official announced the April funding, the message was simple.

That tells you how applications, reports, and renewals are going to be judged for the next five years, right? Not by how much care you delivered, but by how much disease you helped prevent or control.

According to the state's plan, as highlighted by the Texas Hospital Association, 48 rural Texas facilities had less than 10 days of cash on hand, and that was in 2024.

They're older, they have lower incomes, and they carry higher rates of chronic illness and disability.

And a CDC analyst in Texas found that many of the highest prevalence rural counties in East Texas had no diabetes prevention program site in the county or, frankly, in the next county over.

So it's not an accident that Initiative 1, Make Rural Texans Healthy Again, was the first initiative to really move money in an active way.

In April, the governor and HHSC announced $60 million in initial funding for rural hospital districts.

And Budget Period 1 set aside roughly $116 million for this initiative, the largest slice of the first-year award.

When the state's top health official announced the April funding, the message was simple.

That tells you how applications, reports, and renewals are going to be judged for the next five years, right? Not by how much care you delivered, but by how much disease you helped prevent or control.

According to the state's plan, as highlighted by the Texas Hospital Association, 48 rural Texas facilities had less than 10 days of cash on hand, and that was in 2024.
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