An X-ray-style illustration showing the internal structure of a rural medical clinic, with glowing lines and shapes representing the complex systems and services that will be supported by a new state initiative to improve healthcare in remote areas.A new $213 million rural health program aims to strengthen medical infrastructure and expand access to care for underserved communities across North Carolina.Today in Raleigh

The North Carolina Department of Health and Human Services has appointed Maggie Woods as the director of the Rural Health Transformation Program, a statewide initiative supported by $213 million in federal funding. The program is designed to address longstanding challenges in rural health care, including workforce shortages, hospital sustainability, and gaps in mental health and primary care services.

Why it matters

This program represents a significant investment in strengthening rural health systems and improving health outcomes for over 3.5 million North Carolinians living in rural areas. It will help address critical gaps in access to care and support the sustainability of rural healthcare providers.

The details

The Rural Health Transformation Program will support more than 400 rural health facilities and bring hundreds of millions of dollars in federal investment to the state over the next five years. It will implement strategies to strengthen rural health systems and improve outcomes, including the launch of NC ROOTS (Rural Organizations Orchestrating Transformation for Sustainability) Hubs to connect medical, behavioral health and social services. The initiative will also expand access to prevention services, chronic disease management, nutrition programs, mental health, and substance use disorder treatment, while helping providers transition to value-based care models.

The program was announced on April 7, 2026.The $213 million in federal funding was approved by the U.S. Centers for Medicare & Medicaid Services.

The players

Maggie Woods

The new director of the Rural Health Transformation Program, who previously served as director of the N.C. Department of Information Technology’s Office of Digital Opportunity.

Dev Sangvai

The North Carolina Health and Human Services Secretary, who expressed excitement about welcoming Director Woods to the team.

North Carolina Department of Health and Human Services (NCDHHS)

The state agency that announced the appointment of Maggie Woods and is overseeing the Rural Health Transformation Program.

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What they’re saying

“RHTP is a vital investment in rural communities in North Carolina. We are excited to welcome Director Woods to the team as we work quickly to get these federal dollars out the door to the communities that need them the most and ensure we have a structure in place for local decision-making.”

— Dev Sangvai, North Carolina Health and Human Services Secretary

“I grew up in rural America, and I understand first-hand many of the healthcare challenges facing rural communities. This program represents an opportunity to strengthen health systems, expand access to care and ensure that everyone across our state has the opportunity to achieve their best health.”

— Maggie Woods, Director, Rural Health Transformation Program

What’s next

The Rural Health Transformation Program will begin implementing strategies to strengthen rural health systems and improve outcomes, including the launch of NC ROOTS Hubs and investments to help providers transition to value-based care models.

The takeaway

This significant investment in rural health care in North Carolina represents a crucial step in addressing longstanding challenges and ensuring equitable access to quality health services for millions of residents living in rural areas of the state.

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