Telehealth Innovations in Rural Health: How AZ, CO, NM, and NV Are Transforming Access Through the CMS Rural Health Transformation Program

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In January 2026, as rural healthcare continues to face challenges like geographic isolation, provider shortages, and limited infrastructure, the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation (RHT) Program stands out as a pivotal initiative. This $50 billion effort awards funds to all 50 states to bolster rural health systems, with a strong emphasis on innovative capabilities like telemedicine and telehealth. These technologies are key to bridging gaps in care, enabling remote consultations, monitoring, and coordination without the need for long-distance travel. Focusing on Arizona (AZ), Colorado (CO), New Mexico (NM), and Nevada (NV), states with vast rural and frontier landscapes, this blog explores the telemedicine and telehealth themes emerging from their RHT plans. Drawing from states’ narratives and CMS documents, we highlight how each state is leveraging these tools to enhance access, outcomes, and sustainability in rural health.

Arizona: Expanding Telehealth Hubs and Digital Integration for Behavioral and Maternal Health

Arizona's RHT application, dubbed the Rural Behavioral Health Transformation Program (AZRBHTP), positions telehealth as a cornerstone for addressing rural disparities, where residents often travel over 20 miles to the nearest hospital and face severe provider shortages (e.g., a 50,588:1 ratio for behavioral health). The state allocates significant funds to deploy telehealth hubs integrated with rural hospitals and community health centers, enabling virtual specialty consults, remote patient monitoring (RPM), and care coordination. Key initiatives include the Telehealth Digital Transformation, Adoption, and Care Coordination Grant ($20 million/year), which supports equipment, broadband upgrades, and platforms for tele-behavioral health and chronic care services. This aims to reduce emergency department overuse and hospitalizations by facilitating secure, interoperable systems aligned with standards including the Trusted Exchange Framework and Common Agreement (TEFCA). Arizona also mentions plans to pursue reimbursement expansion to include digital therapeutics (DTx).

In maternal-fetal health, Arizona incorporates regional tele-OB consults and perinatal psychiatric helplines to improve prenatal and postpartum care in maternity deserts. The Rural Health Innovative Care Pilot Program ($25 million/year) pilots mobile and satellite units with telehealth components, adopting value-based models to incentivize adoption. Expected outcomes by 2031 include statewide telehealth expansion, increased RPM device usage, and reduced mortality from chronic conditions like cancer and cardiovascular disease. Arizona also emphasizes partnerships with Tribal entities and cybersecurity enhancements to ensure equitable access in 100% rural counties. Overall, the state's approach integrates telehealth into shared-service networks, reducing duplication and supporting workforce training for sustainable rural delivery.

Colorado: Boosting Telehealth Infrastructure for Chronic Disease and Emergency Care

Colorado's RHT Program tackles geographic barriers in its 52 rural and frontier counties, where travel to hospitals can exceed 50 miles and EMS deserts are common. Telehealth is central to the "Expand Rural Telehealth & Technology Integration" initiative ($255.5 million total), which equips facilities with hardware for eConsults, RPM, mobile health tools, and secure video calls. This focuses on specialty access in behavioral health, obstetrics, and maternity care, integrating with chronic disease management for conditions like diabetes and hypertension.

The program includes technology readiness assessments, grants for software, and interoperability with the Colorado Statewide Health Information Exchange (COSHIE). Telehealth supports EMS coordination, reducing response times and hospital bypasses, while consumer-facing tools enable screenings and outreach. Workforce development incorporates telehealth training to expand capacity, and innovative care pilots use it for value-based bundled payments. Targeting tribes like the Southern Ute and Ute Mountain Ute, Colorado aims for 95% rural hospital telehealth capability and a 50% reduction in access gaps by 2031. Sustainability comes from Medicaid integration and policy parity, ensuring long-term viability beyond federal funding.

New Mexico: Leveraging Telehealth for Specialty Networks and Workforce Mentoring

In New Mexico, where one-third of the population resides in nonmetropolitan areas and rural counties face high chronic disease burdens (e.g., 11.2% diabetes prevalence), the RHT Program weaves telehealth into five interconnected initiatives. The "Healthy Horizons" effort ($393 million over five years) expands specialty networks with e-consults, RPM, and virtual platforms in clinics, schools, and senior centers, focusing on chronic disease, maternal health, and behavioral integration. This includes provider-to-provider consults in cardiology and psychiatry, aiming to increase timely virtual consults by 15% and reduce readmissions by 5%.
The "Rooted in New Mexico" workforce initiative uses tele-mentoring and tele-supervision (e.g., via Project ECHO) to support rural clinicians, reducing shortages and HPSA designations by 5-10%. The Rural Health Data Hub integrates telehealth data for predictive analytics, boosting HIE participation by 30%. Community-led projects under the Rural Health Innovation Fund may incorporate telehealth for substance use and preventive care, while the Rural Health Sustainability & Innovation Center provides IT assistance for adoption. New Mexico emphasizes patient choice, HIPAA compliance, and equity for tribal nations, with Medicaid payment parity ensuring sustainability. Metrics track RPM utilization and consult rates, addressing barriers like 50-100+ mile travels to care.

Nevada: Accelerating Telehealth for Chronic Management and AI-Enabled Care

Nevada's RHT Program confronts extreme distances (e.g., 109 miles to specialized care) in its 14 rural/frontier counties by prioritizing telehealth in innovative, value-based models. The Rural Health Outcomes Accelerator Program (RHOAP) allocates $30 million annually for virtual specialty mentorship, RPM, and consumer-facing AI apps to manage chronic diseases like diabetes and heart conditions, as well as behavioral and maternal health. This includes online collaborative care and hybrid approaches to augment provider capacity.

The Rural Health Innovation & Technology Grant ($30 million/year) funds interoperable tech like low-bandwidth telehealth platforms and cybersecurity, targeting a 25% increase in telehealth usage by 2031. Infrastructure investments under the Nevada Rural Health System Flex Fund support shared telehealth resources and equipment. Nevada focuses on scalable solutions for Tribal communities and Medicaid enrollees, integrating with CMS ecosystems for data sharing. Sustainability relies on value-based payments and regional partnerships, with metrics like Medicaid claims data tracking progress in preventive care and outcomes.

Common Themes and Future Outlook

Across AZ, CO, NM, and NV, several themes emerge in telehealth under the RHT Program: leveraging telehealth and digital health capabilities to overcome geographic barriers through RPM, e-consults, and DTx; integration with chronic, behavioral, and maternal care to improve outcomes; workforce enhancement via training and mentoring; technology equity with infrastructure, cybersecurity and interoperability; and sustainability through value-based models and policy alignment. These states share goals of 25-50% increases in adoption and access, targeting rural, frontier, and Tribal areas by 2031. As implementation begins, these efforts could serve as innovative models for nationwide rural healthcare transformation.  Expanding the integration of telehealth and digital health services into everyday healthcare delivery workflows can ultimately make healthcare more accessible and efficient in America's most isolated and medically underserved regions.
 

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About the Author

Picture of Elizabeth A. Krupinski, PhD

Dr. Krupinski is the Director of the Southwest Telehealth Resource Center (SWTC). She is Professor and Vice-Chair of Research at Emory University in the Departments of Radiology, Psychology and Bioinformatics. She received her BA from Cornell, MA from Montclair State and PhD from Temple, all in Experimental Psychology. Her interests are in telehealth, medical image perception, observer performance, decision making, human factors, and the interface between humans and computers, and how that impacts clinical decision-making efficacy and efficiency. She is Past Chair of the Society for Imaging Informatics in Medicine, Past President of the American Telemedicine Association, Past Chair of the SPIE Medical Imaging Symposium, President of the Society for Education and the Advancement of Connected Health, and President of the Medical Image Perception Society. She is Editor of the Journal of Imaging Informatics in Medicine and Telemedicine Reports.