CT launches $50M rural hospital transformation effort

Four state rural hospitals and an out-of-state technical assistance vendor will receive a combined $50 million in federal funding to modernize the hospitals’ facilities, expand services and address operational challenges, the state announced Wednesday. The grants are part of the first year of the Connecticut Rural Health Transformation Program, a five-year federal initiative being administered here by the state Department of Social Services. Of the $50 million, $46 million will be divided among four hospitals: Day Kimball Hospital in Putnam will receive the $20.23 million. Sharon Hospital will receive $13.12 million. Hartford HealthCare’s Windham Hospital in Willimantic and Charlotte Hungerford Hospital in Torrington will share a combined $12.65 million. DSS has finalized grant agreements with the hospitals, allowing them to begin work on projects aimed at addressing healthcare access, operational efficiency, infrastructure needs and restructuring service lines, Gov. Ned Lamont’s office said. Another $3.98 million is being awarded to New Jersey-based Mathematica, an employee-owned research and consulting firm with a rural healthcare practice, to provide technical assistance to the hospitals. The $50 million investment represents just under a third of the approximately $154.25 million Connecticut received for the first year of the federal Rural Health Transformation Program. The state’s broader initiative includes 30 projects focused on population health, workforce development, data and technology, and healthcare transformation and stability. The federal government awarded Connecticut $154.25 million in December 2025. Future funding is awarded annually, and the state has said that receiving similar amounts over the program’s five years would bring the Connecticut’s total to about $750 million. The hospital grants are intended to support projects including equipment upgrades, facility renovations, expanded digital and telehealth capacity, behavioral health and maternal health services, as well as efforts to stabilize the healthcare workforce. State officials said rural hospitals face particular financial and operational pressures because of low patient volumes, staffing shortages, aging infrastructure and a relatively high reliance on government payers. DSS Commissioner Andrea Barton Reeves said the funding is intended to strengthen rural hospitals while improving their long-term financial and operational sustainability. The hospital initiative is one component of Connecticut’s broader Rural Health Transformation Program, which also includes efforts to expand rural healthcare workforce pipelines, telehealth and remote patient monitoring, behavioral healthcare and community-based services. The program is funded entirely by the federal Centers for Medicare and Medicaid Services.