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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

  • All 50 states are eligible to apply. The federal funds include $50 billion that is split into $10 billion allocations, or “pots”, to be distributed annually from FFY 2026 to FFY 2030.
  • Each year, 50% of the $10 billion will be distributed evenly to all states with an approved application, which is approximately $100 million annually per state (if all 50 apply and are approved).
  • The remaining 50% of the annual funding amount will be available to at least 25% of approved states considering a number of factors outlined in H.R. 1.
  • States are not allowed to use this funding as a source of state match for additional federal dollars.

Timeline

  • Application form submission deadline is in early November 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; application submission may be due sooner.
    • CMS indicates it plans to release the application in September 2025.
  • 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

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

Rural Health Transformation Program Advisory Board

The Rural Health Transformation Program (RHTP) Advisory Board will make recommendations for the implementation and execution of the required application as outlined in H.R. 1 Section 71401. These recommendations will include the permitted activity selection, funding distribution and methodology, and other areas outlined in the application provided by the Centers for Medicare & Medicaid Services (CMS).

Our Members

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

2025 Meeting Schedule and Handouts

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

Additional Resources

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Email: 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.