Rural Health Systems · Implementation · 6 min read
How can rural health systems and hospitals use Rural Health Transformation Program funding?
Rural hospitals and health systems are the primary intended beneficiaries of RHTP, with funds aimed at stabilizing services and modernizing care delivery. In practice, rural health systems and hospitals can fund service-line stabilization (OB, ED, behavioral health), telehealth and remote monitoring infrastructure, workforce recruitment and retention, and regional care networks and shared services. These map most naturally to the additional uses that promote sustainable access, and payments to providers for items or services categories, and Rural systems are frequently direct sub-recipients of state RHTP solicitations and often anchor regional partnerships.
Where RHTP fits
Rural hospitals and health systems are the primary intended beneficiaries of RHTP, with funds aimed at stabilizing services and modernizing care delivery.
Fundable program types
RHTP can support a range of work for rural health systems and hospitals:
- service-line stabilization (OB, ED, behavioral health)
- telehealth and remote monitoring infrastructure
- workforce recruitment and retention
- regional care networks and shared services
How to engage with the funding
Rural systems are frequently direct sub-recipients of state RHTP solicitations and often anchor regional partnerships.
Because states apply and are accountable; sub-recipients (providers, plans, vendors) deliver, the practical move is to track your state's solicitations and align your proposal to its plan.
A common pitfall to avoid
Funding new services without a sustainability plan risks creating capacity that collapses when the program sunsets in FY2030.
Frequently asked questions
- Are rural health systems and hospitals eligible for RHTP funding?
- Not directly: states hold the award. rural health systems and hospitals participate through state solicitations as sub-recipients or partners.
- Which allowable-use categories fit rural health systems and hospitals best?
- The additional uses that promote sustainable access, and payments to providers for items or services categories are the most natural fit.
Figures reflect the CMS Rural Health Transformation Program NOFO and the December 2025 award announcement. RHTP Tracker is an independent resource by Moodr Health and is not affiliated with CMS.