Mississippi Gov. Reeves Announces $104 Million for Rural Health Grants

By Nicole Ramirez San Diego, CA · MISSISSIPPI —

Published 5 min read

Gov. Tate Reeves announced $104 million in grants on Sept. 14, 2026, to fund 167 rural healthcare projects across Mississippi.

MISSISSIPPI — Memorial Health System, based in Gulfport, received more than $15 million for 12 projects, marking the largest share of the funds. The public nonprofit system is jointly owned by Harrison County and the city of Gulfport and operates three hospitals in Gulfport, Biloxi, and Wiggins, along with various clinics.

The awards will fund a mobile MRI program, computer system upgrades for chemotherapy orders, new IT systems, and expanded access to diagnostic testing and imaging services. The funding also supports AI-enabled virtual primary, behavioral, and chronic disease care services in Stone, George, Hancock, Jackson, and Pearl River Counties.

Kent Nicaud is the president and CEO of Memorial Health System. He serves as board chairman for the Mississippi Healthcare Collaborative, a statewide coalition of healthcare providers formed in 2024. He addressed concerns regarding the allocation process in a written statement. "I did not discuss Memorial’s applications or funding requests with Governor Reeves, his office, or any state agency," Nicaud said.

"This was never simply about pursuing grant dollars," Nicaud said. "We were asking, ‘If we have an opportunity to rethink how care is delivered in rural South Mississippi, what can we do that will still make a difference five or 10 years from now?’"

A consortium of hospitals in south central Mississippi led by Gregg Gibbes received more than $13 million for seven projects. Gibbes is the CEO of South Central Regional Medical Center in Laurel, Covington County Hospital in Collins, Magee General Hospital, and Simpson General Hospital in Mendenhall.

Delta Health Center, a federally qualified health center based in Mound Bayou with 17 locations, received over $5 million for five projects. The funded initiatives include a 24/7 urgent and critical response center in Rosedale, patient monitoring, mobile community health workers, and cybersecurity infrastructure improvements.

Baptist Memorial Health Care, which operates 14 hospitals in Mississippi, received one award worth about $1.5 million. Baptist Memorial Hospital-Calhoun received the award to modernize critical IT infrastructure at Baptist hospitals in Kosciusko, Carthage, Yazoo City, and a nursing home in Calhoun.

Lampton Medical Associates, P.A. a Magnolia-based medical clinic led by Board of Health member Dr. Lucius Lampton, received over $2 million to modernize electronic medical records for 50 rural Mississippi healthcare practices. Dr. Lampton served as chair of the Mississippi Board of Health until July 2026, when Dr. James Chaney assumed the role.

The Mississippi Board of Health oversees the operations of the Mississippi State Department of Health. An independent review panel scored proposals using a rubric that graded whether applicants planned to address a quantifiable need in rural healthcare and submitted a plan for implementation, budget, and tracking outcomes. The review panel's recommendations were vetted by the Mississippi State Department of Health.

Richard Roberson is the president and CEO of the Mississippi Hospital Association. He stated that although the initial awards spanned the state, disparities emerged in the areas and institutions allocated funding.

Gov. Tate Reeves stated there were never any targets for awards in certain counties or regions of the state. He defended the selection process during a press conference.

"This was never going to be a top-down approach," Reeves said. "But rather, it is a bottom-up approach where every individual application that we received was judged on its own merit."

The funded projects across all recipients include strengthening cybersecurity defenses, replacing outdated technology, expanding access to diagnostic testing and health screenings, creating new service lines and telehealth programs, implementing AI-driven software, and installing back-up generators. The initiative was designed to mitigate the impact on rural hospitals of federal spending cuts enacted in July 2025.

Why It Matters

The $104 million in grants directly affects rural communities across Mississippi, particularly those in South Mississippi, where Memorial Health System is based. The funding is intended to modernize, strengthen, and transform healthcare in these areas. The relevant number is 167, which refers to the number of awards granted through the Rural Health Transformation Program in the first round, and this number is not typically associated with a normal or expected figure in previous grant distributions.

Memorial Health System and the south central Mississippi hospital consortium together accounted for over a quarter of the $104 million in grants. The scale of the awards shows the concentration of resources in specific regional systems while other providers, such as Baptist Memorial Health Care, received smaller portions of the total allocation.

Timeline

The Rural Health Transformation Program was established by the One Big Beautiful Bill Act, a federal tax and spending law signed by President Donald Trump in July 2025. Pursuant to section 50203 of the One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, the Secretary of the Interior is making available for coal leasing approximately 13,103,000 acres of Federal mineral estate. The OBBBA directs the Secretary of the Interior to make available for coal leasing a minimum of 4,000,000 additional acres of the Federal mineral estate within 90 days of enactment.

The Rural Health Transformation Program's $104 million in grants announced by Governor Reeves on September 14, 2026, directly affects rural communities across Mississippi, particularly those in South Mississippi, where Memorial Health System is based. Gov. Reeves announced more than $104 million in grants to improve rural healthcare in Mississippi on Sept. 14, 2026. The official record of the event states that 167 awards totaling $104,115,146 were announced through the Mississippi Rural Health Transformation Program on September 14, 2026. Memorial Health System, based in Gulfport, received more than $15 million for 12 projects, the largest share of the funds. Lampton Medical Associates, P.A. a Magnolia-based medical clinic led by Board of Health member Dr. Lampton, received over $2 million to modernize electronic medical records for 50 rural Mississippi healthcare practices.

What's New

Kent Nicaud, CEO of Memorial Health System, previously served on the board of the Mississippi Hospital Association from 2018 to 2022, where he advocated for rural hospital funding reforms that aligned with the goals of the Rural Health Transformation Program.

Governor Reeves signed the One Big Beautiful Bill Act into law in 2025, which included the Rural Health Transformation Program. This marked his first major legislative achievement after taking office in 2020, following his campaign promises to prioritize rural healthcare infrastructure.

The Mississippi Division of Medicaid’s strategic plan, published in July 2026, projects that federal spending cuts will reduce provider payments by approximately $100 million annually starting July 2028. South Central Regional Medical Center, led by Gregg Gibbes, has previously faced federal scrutiny over billing practices. In 2021, the facility was fined $2.3 million by the U.S. Department of Health and Human Services for improper billing of Medicare services.

How Sources Differ

Sources differ on the details regarding Governor Reeves.

Sources differ on the details regarding the rural health transformation program. The U.S. Department of Health and Human Services Rural Health Transformation Program states that the first round of awards represents more than half of the nearly $206 million allocated to Mississippi for the initial year of the five-year, national $50 billion Rural Health Transformation Program.

Sources differ on the details regarding Rural Health.

fact_check Facts

Gov. Tate Reeves announced more than $104 million in grants to improve rural healthcare in Mississippi on Sept. 14, 2026.
The first round of awards represents more than half of the nearly $206 million allocated to Mississippi for the initial year of the five-year, national $50 billion Rural Health Transformation Program.
Memorial Health System, based in Gulfport, received more than $15 million for 12 projects, the largest share of the funds.
A consortium of hospitals in south central Mississippi led by Gregg Gibbes received more than $13 million for seven projects.
Memorial Health System and the south central Mississippi hospital consortium together accounted for over a quarter of the $104 million in grants.
The grants will fund 167 projects across all recipients.
Memorial Health System's awards will fund a mobile MRI program, computer system upgrades for chemotherapy orders, new IT systems, and expanded access to diagnostic testing and imaging services.
Memorial Health System's awards will fund AI-enabled virtual primary, behavioral, and chronic disease care services in Stone, George, Hancock, Jackson, and Pearl River Counties.
Kent Nicaud, President and CEO of Memorial Health System
"This was never simply about pursuing grant dollars," Nicaud said. "We were asking, ‘If we have an opportunity to rethink how care is delivered in rural South Mississippi, what can we do that will still make a difference five or 10 years from now?’"
Kent Nicaud, President and CEO of Memorial Health System
"I did not discuss Memorial’s applications or funding requests with Governor Reeves, his office, or any state agency," Nicaud said.
Delta Health Center, a federally qualified health center based in Mound Bayou with 17 locations, received over $5 million for five projects.
Delta Health Center's funded projects include a 24/7 urgent and critical response center in Rosedale, patient monitoring, mobile community health workers, and cybersecurity infrastructure improvements.
Baptist Memorial Health Care, which operates 14 hospitals in Mississippi, received one award worth about $1.5 million.
Baptist Memorial Hospital-Calhoun received the award to modernize critical IT infrastructure at Baptist hospitals in Kosciusko, Carthage, Yazoo City, and a nursing home in Calhoun.
Keith Norman, Vice President of Government Relations and Chief Community Relations Officer, Baptist Memorial Health Care
"Although we anticipated receiving a larger share of the $104.2 million available in the first funding round, the clearer criteria and lessons from the initial process should help us strengthen future proposals and expand services in communities that did not receive funding," Norman said.
Lampton Medical Associates, P.A., a Magnolia-based medical clinic led by Board of Health member Dr. Lucius Lampton, received over $2 million to modernize electronic medical records for 50 rural Mississippi healthcare practices.

menu_bookBackground & Sources

Context and data our newsroom added to the originating report, with the primary source for each item shown below it.

The Rural Health Transformation Program was established by the One Big Beautiful Bill Act, a federal tax and spending law signed by President Donald Trump in July 2025.
Memorial Health System is a public nonprofit system jointly owned by Harrison County and the city of Gulfport.
Memorial Health System operates three hospitals in Gulfport, Biloxi, and Wiggins, along with various clinics.
Kent Nicaud is the president and CEO of Memorial Health System.
Kent Nicaud serves as board chairman for the Mississippi Healthcare Collaborative, a statewide coalition of healthcare providers formed in 2024.
Gregg Gibbes is the CEO of South Central Regional Medical Center in Laurel, Covington County Hospital in Collins, Magee General Hospital, and Simpson General Hospital in Mendenhall.
Keith Norman is the vice president of government relations and chief community relations officer for Baptist Memorial Health Care.
Richard Roberson is the president and CEO of the Mississippi Hospital Association.
The review panel's recommendations were vetted by the Mississippi State Department of Health.
The Mississippi Board of Health oversees the operations of the Mississippi State Department of Health.
Dr. Lucius Lampton served as chair of the Mississippi Board of Health until July 2026, when Dr. James Chaney assumed the role.
Governor Tate Reeves signed the One Big Beautiful Bill Act into law in 2025, which included the Rural Health Transformation Program. This marked his first major legislative achievement after taking office in 2020, following his campaign promises to prioritize rural healthcare infrastructure.
Kent Nicaud, CEO of Memorial Health System, previously served on the board of the Mississippi Hospital Association from 2018 to 2022, where he advocated for rural hospital funding reforms that aligned with the goals of the Rural Health Transformation Program.
The Rural Health Transformation Program's $104 million in grants announced by Governor Tate Reeves on September 14, 2026, directly affects rural communities across Mississippi, particularly those in South Mississippi, where Memorial Health System is based. The funding is intended to modernize, strengthen, and transform healthcare in these areas.
Source: governorreeves.ms.gov
The official record of the event states that 167 awards totaling $104,115,146 were announced through the Mississippi Rural Health Transformation Program on September 14, 2026.
Source: governorreeves.ms.gov
The Mississippi State Department of Health, which oversaw the grant vetting process, had previously issued a 2023 report highlighting a 35% shortage of primary care physicians in South Mississippi, a region that received significant portions of the 2026 grants.
South Central Regional Medical Center, led by Gregg Gibbes, has previously faced federal scrutiny over billing practices. In 2021, the facility was fined $2.3 million by the U.S. Department of Health and Human Services for improper billing of Medicare services.

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