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Fort Smith
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Mercy Fort Smith Communities has been awarded more than $19 million through the Rural Health Transformation Program to strengthen healthcare access, improve patient outcomes and support the long-term sustainability of rural healthcare across western Arkansas.
The funding includes $6.34 million through THRIVE and $12.72 million through PACT, supporting telehealth, AI-enabled SMART rooms, advanced monitoring and imaging technology, emergency consultation services and investments in critical-access hospitals.
The investment comes at a critical time for rural healthcare, helping providers address financial pressures, workforce shortages and rising costs while serving the nearly 1.3 million Arkansans who live in rural areas.
Mercy Fort Smith Communities has been awarded more than $19 million through the Rural Health Transformation Program (RHTP), an initiative designed to strengthen healthcare access, improve patient outcomes and support the long-term sustainability of rural healthcare across the state.
The funding is part of a $208.8 million Fiscal Year 2026 award secured by the State of Arkansas through the Centers for Medicare & Medicaid Services (CMS). The federal investment represents the first year of a five-year initiative that will provide funding for rural healthcare organizations throughout Arkansas and comes as healthcare providers nationwide navigate increasing financial challenges.
Mercy will receive a combined $19,056,249 to strengthen healthcare access across western Arkansas. Funding includes $6,340,043 through the state’s THRIVE (Telehealth, Health-Monitoring and Response Innovation for Vital Expansion) initiative for telehealth, AI-enabled SMART rooms, advanced monitoring and imaging technology, digital integration and emergency consultation services, along with $12,716,206 through the PACT (Promoting Access, Coordination and Transformation) initiative to support critical-access hospitals, expand regional care capabilities and enhance patient navigation, population health, facility infrastructure, accessibility, safety and emergency preparedness.
Mercy Fort Smith Communities serves patients throughout western Arkansas and eastern Oklahoma through a network of hospitals, clinics and healthcare services focused on meeting the evolving needs of the region. Its critical access hospitals are in Booneville, Ozark, Paris and Waldron, while additional rural areas are home to Mercy primary care locations. The award will help Mercy continue providing access to critical healthcare services while making strategic improvements that support long-term sustainability and enhanced patient care throughout the region.
Significant reductions in Medicaid-related funding and ongoing pressures associated with workforce shortages and rising operational costs are among the ongoing challenges faced by healthcare systems nationwide. The RHTP represents a federal investment in rural health, but it cannot fully replace the deep Medicaid cuts enacted under the same legislation. While it offers funding for innovation, workforce development and technology, rural hospitals and clinics remain financially vulnerable, and careful state planning is essential to maximize the program’s impact on rural communities.
According to the state, around 1.3 million Arkansas residents, or 45%, live in rural areas. Through the RHTP, healthcare organizations will be able to continue providing care for patients in rural and underserved communities.
Mercy Fort Smith leaders were on hand at the Capitol in Little Rock on Aug. 27 to receive the award.
“This funding enables Mercy to continue caring for patients today in these rural communities," said Ryan Gehrig, president of Mercy Fort Smith Communities. "By supporting innovation and expanded access to services, we can continue fulfilling Mercy's mission of providing compassionate care close to home. We are grateful for this investment by Arkansas in the health and well-being of the communities we serve.”
State leaders anticipate distributing the full FY2026 allocation in multiple rounds, with future funding opportunities expected to bring total program support to more than $1 billion over the next five years. A full list of current funding awards can be found here.
