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Colorado Rural Health Transformation Program

The Rural Health Transformation Program was authorized by H.R. 1 Section 71401 of Public Law 119-21, to provide grants totaling $50 billion in federal funds from Federal Fiscal Year (FFY) 2026 through FFY 2030 ($10 billion per year) to States (territories and Washington D.C. are excluded). The program will be administered by the Centers for Medicare and Medicaid Services (CMS), and requires each state to submit an application and include a “rural health transformation plan” to the U.S. Department of Health and Human Services (HHS). Awards will be announced no later than December 31, 2025, with funding to states in early 2026. These grants are federal funds only; states will not be required to provide matching funds to draw down these Rural Health Transformation federal funds.

CMS Important Information

For additional information: CMS Rural Health Transformation Program

*The application was provided by CMS on September 15, 2025.

Important Documents

CMS Outlined Strategic Goals

  • Making Rural America Healthy Again - Support rural health innovations and new access points to promote preventative health and address root causes of diseases.
  • Creating Sustainable Access - Help rural providers become long-term access points for care by improving efficiency and sustainability.
  • Workforce Development - Attract and retain a high-skilled health care workforce by strengthening recruitment and retention of healthcare providers in rural communities.
  • Innovative Care - Spark the growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements.
  • Tech Innovation - Foster use of innovative technologies that promote efficient care delivery, data security, and access to digital health tools by rural facilities, providers, and patients.

CMS Restrictions of Grant Funds

  • No new construction
  • Duplication of federal funding is not allowed

Rural Health Transformation Program Funds Structure

The federal funds include $50 billion that will be allocated to approved States over five fiscal years and will be split into $10 billion allocations to be distributed annually from Federal Fiscal Year (FFY) 2026 to FFY 2030. All 50 states are eligible to apply. 

  • Each year, 50% of the $10 billion will be distributed evenly to all states with an approved application.
  • The remaining 50% of the annual funding amount will be allocated by CMS based on a variety of factors including rural population, the proportion of rural health facilities in the State, the situation of certain hospitals in the State, and other factors to be specified by CMS and the Notice of Funding Opportunity (NOFO), with fund distribution available for up to 25% of approved State applications.
  • States are not allowed to use this funding as a source of state match for additional federal dollars.

Timeline

  • Application form submission deadline is November 5, 2025.
    • In H.R. 1, both the application and the funding decision on the use of funds are subject to the December 31, 2025, cutoff date.
  • The Department of Health Care Policy & Financing (HCPF) is targeting to have a final application ready for submission by October 31, 2025.

Application Information

  • Rural health transformation plan with goals delineated in H.R. 1
  • Strategies to manage long-term financial solvency for rural hospitals
  • Identification of specific causes driving the accelerating rate of standalone rural hospitals becoming at risk of closure, conversion, or service reduction
  • A plan to use the funds to carry out three or more activities as outlined in the Bill
  • CMS will provide updates on the application as needed and the FAQs on their website will be updated weekly

Allowed Providers

  • Hospitals: Critical Access Hospitals, Sole Community Hospitals, other defined types
  • Community health centers: Federally Qualified Health Centers (FQHCs), FQHC look-alikes, designated rural health clinics, and other community health centers receiving Section 330 grants
  • Behavioral health providers: community mental health centers, certified community behavioral health clinics, and opioid treatment programs

Permissible Uses

  • Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases.
  • Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years.
  • Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes.
  • Promoting evidence-based, measurable interventions to improve prevention and chronic disease management.
  • Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies.
  • Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines.
  • Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate.
  • Providing payments to health care providers for the provision of health care items or services, as specified by the Administrator.
  • Additional uses designed to promote sustainable access to high-quality rural health care services, as determined by the Administrator.
  • UPDATED – Initiating, fostering, and strengthening local and regional strategic partnerships between rural facilities and other health care providers to promote quality improvement, improve financial stability of rural facilities, and expand access to care.
  • NEW – Investing in existing rural health care facility buildings and infrastructure, including minor building alterations or renovations and equipment upgrades to ensure long-term overhead and upkeep costs are commensurate with patient volume, subject to restrictions in the funding policies and limitations.

External Stakeholder Meetings

Rural Health Transformation Program Advisory Board

The Rural Health Transformation Program (RHTP) Advisory Board will make recommendations for the implementation of the approved application from CMS.

Our Members

The membership of the board is being determined and will be published when it is approved after the grant application is submitted.

2025 Meeting Schedule and Handouts

The meeting schedule for the board will be posted when it is approved.

Additional Resources

Newsletters

Contact Us

Sign up for our newsletter here!

Please use the following email address for all future correspondence regarding RHTP (this will ensure that all of your questions/comments are responded to in a timely manner): hcpf_RHTP@state.co.us 

Reasonable accommodations for the meetings will be provided upon request for persons with disabilities. Please contact hcpf_rhtp@state.co.us at least one week prior to the scheduled meeting if you need special arrangements.

People using assistive technology may not be able to fully access the information in some files. For assistance, contact Shay Lyon at shay.lyon@state.co.us.