The legislative session has just begun, but the clock is ticking on a federal health initiative.
The Rural Health Transformation Program is awarding South Dakota $189.4 million this fiscal year alone, but lawmakers have plenty of questions before granting the state permission to spend that money.
Members of the Rhoden Administration presented their plan for the money to lawmakers last week. It includes projects like establishing maternal healthcare hubs, workforce development initiatives and updating payment models for Medicaid providers. All told, the state hopes to launch 10 initiatives, and the next round of federal funding depends on what’s accomplished in the next several months.
Laura Ringling is a senior policy advisor with the governor’s office. She told members of the Joint Appropriations Committee she’s confident in the state’s plan, but it's going to be a big lift.
"We're going to be on a compressed timeline to get moving, especially in year one where our funding period is shorter. Only ten months," she explained. "And so we really do need your help in approving the authority to spend down the money that’s allocated to us.”
But some lawmakers worry the state will end up footing the bill once the federal program ends. Sen. Taffy Howard serves on appropriations.
“I’m just gonna be honest, I struggle to know how we are going to use one-time dollars creating these OB hubs and spokes, or the behavioral health collaborative care—I struggle to see how that is going to continue when these dollars go away," Howard said.
Department of Health Secretary Melissa Magstadt assured lawmakers that’s part of the process as the initiatives accept local applications.
“The RFP must say how you are going to sustain it. Not how we’re going to sustain it. How you are going to sustain it, little hospital, or little rural EMS, or whatever it is,” Magstadt said.
Magstadt and other members of the administration fielded questions from lawmakers for about an hour during the informational session.
House Bill 1044 grants the state authority to start spending the Rural Health Transformation dollars. It has not yet been heard in committee.
