The medicine of healthcare is complex and so is the business of healthcare and its relationship to local, state and federal government.
President Donald Trump’s ‘Big Beautiful Bill’ – the federal budget bill for 2026 – allocated $50 billion over five years to be divided up among 50 states under the Rural Health Transformation Program and Mississippi’s portion for 2026 is $205,907,220. But details of how that will filter down to Highland Hills, Tate County’s hospital in Senatobia, remain to be seen.
“I’m incredibly encouraged by the potential of the Rural Health Transformation funding and what it could mean for our community,” said Craig Shideler, Chairman of the Highland Hills’ Board of Trustees. “The board is fully aligned with leadership’s vision to strengthen Highland Hills Medical Center for the long term.”
More than half of Mississippi’s rural hospitals are at risk of closing, according to a recent report by the Center for Healthcare Quality and Payment Reform. Nine, including Clarksdale and Tallahatchie County hospitals have been identified as in danger of closing. In addition, 22 more Mississippi hospitals were considered at an elevated risk and approximately 40 as struggling financially.
Mississippi has 122 hospitals providing comprehensive medical care.
Highland Hills in Senatobia has apparently turned a corner and reported profits this summer and the hiring of a full-time doctor in the spring.
Funding from the state at any level can do nothing but help continue that trend.
“Highland Hills Medical Center is closely monitoring announcements regarding the new Rural Health Transformation funding,” said Highland Hill Administrator Jenny Miller. “While limited details have been released at this time, our strategic priority has always been clear: to provide high-quality, sustainable healthcare for the residents of Tate County.”
The state’s $205,907,220 award comes through the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation Program. The funding follows a strategic plan submitted by the state in November aimed at stabilizing the healthcare workforce and looking at new trends in healthcare.
Governor Tate Reeves credited the federal partnership for the “once-in-a-generation opportunity,” and went on to say the Office of the Governor will oversee the program’s implementation, coordinating with the Mississippi Department of Health and the Division of Medicaid.
The plan is built on six core initiatives:
• Statewide Needs Assessment: A third-party evaluation of current and future healthcare needs over the next decade.
• Regional Integrated Systems: Creating a data-driven network to connect emergency, clinical and community services.
• Workforce Expansion: Targeted recruitment and retention programs to bring more doctors and nurses to underserved areas.
• Technology Modernization: Upgrading the digital infrastructure to ensure secure, coordinated patient care.
• Telehealth Support: Increasing virtual care access and exploring new payment models for remote diagnostics.
• Infrastructure Growth: Building physical and operational capacity to close existing care gaps.
Highland Hills’ Miller addressed some of these points.
“Once we know more, our focus will be on expanding services, making it easier for patients to get the care they need without traveling long distances and continuing to invest in the infrastructure that keeps our hospital strong,” said Miller. “We are currently using previously awarded federal funding to make key improvements to our building — upgrading the roof, HVAC system and electrical systems. We’ve also recently enhanced our diagnostic capabilities with a new CT scanner.
“Any additional funding would be put to work in the same way: supporting high-quality care, improving access, bringing in advanced technology and strengthening our skilled healthcare team,” Miller added. “Looking ahead, we hope to reopen surgical services so routine procedures can be done close to home, expand telehealth to bring specialists to patients virtually and continue strengthening the core services our community relies on.”
Spending $200-plus million dollars
Lt. Governor Delbert Hosemann told the Tate Record this summer all Mississippi hospitals met the definition of a rural hospital, even those in what most Mississippians might call metropolitan areas of the state.
Hosemann also said healthcare and how it is delivered is changing and hospitals in the most rural parts of the state will probably have to align with the state’s six major hospital groups at some point to stay viable.
This current funding is part or a five year plan that will see $10 billion allocated to the program annually over the next five years.
Each state’s funding was determined based on a formula that calculated states’ rurality, the quality of its application and implementation of several policies aligned with the White House’s Make America Healthy Again agenda.
Mississippi has adopted policies that received higher scores by implementing Presidential Physical Fitness tests in schools and adopting programs that restrict EBT purchases of sugar-heavy foods and through the Supplemental Nutrition Assistance Program.
Some Mississippi lawmakers have suggested the funds be divvied up similar to the opioid court settlement where drug companies will pay Mississippi millions over the next 10 years to combat opioid addiction. That process saw a board formed to take applications from agencies combatting addiction that were ranked by the board and funded accordingly.
State Representative Trey Lamar (R-Senatobia), who serves as Chairman of the House Ways and Committee and is also the attorney for the Highland Hills board of trustees said details are few at this point, but it is an incredible moment for rural hospitals like Highland Hills.
“I understand the real needs we have in Mississippi to improve rural healthcare and I want to seize this opportunity to help make quality care more accessible for Mississippians in rural areas,” said Lamar. “I look forward to learning more about these federal dollars and advocating for their use to improve quality of healthcare in our towns and communities all across Mississippi.
“Specifically, I will be working to ensure that Highland Hills Medical Center in Senatobia receives its fair share of these funds to help our hospital continue its great progress toward bringing high quality healthcare to Tate County.”
Hometown Hospital
Highland Hills was recently recognized as a 2025 Five-Star Professional Research Consultants Excellence Award recipient for inpatient services and care. The hospital ranked in the top 10 percent nationally in patient survey scoring for Overall Hospital Rating, based on the 2024 Inpatient Services Normative Database.
Senatobia saw its hospital close for four years before Delta Health System in Greenville reopened the hospital July 2021. Problems continued and Tate County purchased the hospital in early 2023.
Upon purchasing the hospital, the Board of Supervisors appointed a Board of Trustees to oversee operations at the hospital.
In addition to Miller and Shideler, other members of the Board of Trustees are: Ronnie King, Parke Pepper, Jennifer Hall, Dr. Brant Kairit, Jay Tindall and Mike Zech.
“Every decision we make is grounded in ensuring access to high-quality, local care for Tate County residents,” said Shideler. “We’re excited about the opportunities ahead and remain committed to investing wisely in services, technology and people so our hospital can continue to meet the needs of this community for generations to come.”
As of the first of last year HHMC employed approximately 70 higher paying full-time jobs and approximately 30 part-time jobs.
Services offered by the hospital include a 24/7 physician-staffed Emergency room and a clinic which offers the public access to outpatient services through the laboratory and radiology departments. The hospital also boasts a state-of-the art Women’s Center which offers mammograms and bone density tests.
The hospital also hosts the Five Star Café which serves staff and patients. The café is open to the public for breakfast and lunch, Monday through Friday.
This coverage is supported by a grant from Press Forward Mississippi, part of a nationwide philanthropic effort to strengthen local news so communities stay informed, connected and engaged.
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