Digital Health Modernization and Technology Grant Program is sponsored by South Dakota Department of Health. This program, part of the Rural Health Transformation initiative, supports healthcare entities and providers in underserved and rural South Dakota communities to modernize digital health technology and equipment.

Rural Health Transformation Project | South Dakota Department of Health Rural Health Transformation Project Building a Stronger, Healthier Rural South Dakota South Dakota is one of the most rural states in the country, and that creates unique healthcare challenges. Many rural and frontier residents travel long distances to reach care, face limited transportation options, and experience provider shortages.

These challenges can lead to higher rates of suicide, chronic disease, and preventable health conditions. To help address these needs, the South Dakota Department of Health has launched the Rural Health Transformation Project. This five-year initiative focuses on strengthening healthcare systems in rural communities and ensuring that access to quality care is available statewide.

View the RHT Funding Forecast Submit a Question or Comment Here View Informational Slide Deck Application Resources, Webinar, & FAQs Explore application resources, frequently asked questions, and a recorded webinar to guide you through the process. Find Application Resources, FAQs, & Webinar South Dakota's Application South Dakota has secured approximately $189.

4 million in federal funding to strengthen rural healthcare systems across the state. The Rural Health Transformation Project is a five-year initiative, spanning FY 2026 through FY 2030, focused on improving access to care, strengthening the healthcare workforce, modernizing technology, and supporting sustainable rural health systems in rural and frontier communities.

Notice of Funding Opportunity Every South Dakotan deserves access to safe, high-quality care close to home. This project is designed to make rural healthcare more sustainable, connected, and resilient for the long term. Focus Areas and Initiatives Connecting Technology and Data Strengthening digital infrastructure and improving data sharing to support rural providers, enhance care coordination, and improve patient outcomes.

Technology and Data Connection Improves interoperability, data sharing, and digital infrastructure to support rural providers and enhance patient care coordination. Advancing the Rural Workforce Recruiting, training, and sustaining a strong rural healthcare workforce to ensure long-term access to care.

Building a Sustainable Rural Healthcare Workforce Strengthens the rural healthcare workforce through an incentive-based program that attracts, develops, and retains professionals across critical roles and care settings. Community Health Worker Workforce Expansion Expands and strengthens the community health worker workforce to improve outreach, care navigation, and chronic disease support in rural communities.

Rural Health Forward Training Hub Provides workforce training, recruitment, and retention support to rural healthcare facilities. Enhancing Sustainable EMS Supports sustainability, recruitment, modernization, and long-term viability of rural Emergency Medical Services. Keeping Healthcare Local and Strong Improving access to high-quality services so individuals and families can receive care close to home.

Medicaid Rural Health Access and Quality Grants Provides funding to rural facilities to enhance healthcare access and improve quality measures. Regional Maternal and Infant Health Hubs Strengthens maternal and infant health systems through regional coordination and service expansion. Integrated Behavioral Health System Expands access to behavioral health services and integrates behavioral health within rural healthcare settings.

Strengthening Chronic Disease Management Supports coordinated approaches to prevent and manage chronic conditions in rural populations. Transforming Systems for Sustainability Advancing innovative payment models, care coordination strategies, and long-term system improvements to ensure rural healthcare sustainability.

Medicaid Primary Accountable Care Transformation (PACT) Supports value-based care transformation to improve coordination, quality outcomes, and long-term sustainability. Community Conversations: Listening to South Dakotans The South Dakota Department of Health held community conversations in five locations: Aberdeen, Eagle Butte, Pierre, Rapid City, and Yankton.

These meetings helped identify the key healthcare challenges and opportunities in rural areas of the state. Participants highlighted issues such as workforce shortages, limited access to dental and behavioral health services, transportation barriers, and the need for affordable, local care.

Common solutions included expanding telehealth and mobile clinics, improving broadband access, supporting rural provider recruitment programs, and developing community-based transportation and wellness initiatives. The feedback gathered from these discussions is guiding efforts to strengthen healthcare access and delivery for all South Dakotans, regardless of where they live.

Access to healthcare is limited in many rural communities There are not enough healthcare workers across fields Transportation is a major barrier to receiving care Mental and behavioral health needs are growing Dental care is difficult for many residents to access Telehealth can help, but requires better internet and tools Cost and insurance challenges prevent needed care Some groups, such as seniors, youth, and Native communities, face added barriers View the RHT Project Timeline South Dakota Announces First Awards for Rural Health Transformation Grant Program Management The State of South Dakota has selected three consultant organizations to support implementation and project management of several initiatives within the South Dakota Rural Health Transformation initiative.

May 21, 2026 | Rural Health Transformation State of South Dakota Announces Second Round of Rural Health Transformation Requests for Proposals The State of South Dakota’s Rural Health Transformation (RHT) initiative has released the next round of Request for Proposals (RFP) focused on strengthening rural, tribal, and frontier health care systems through digital health modernization, coordinated delivery of care methods, and project management.

March 3, 2026 | Rural Health Transformation State of South Dakota Announces First Round of Rural Health Transformation Requests for Proposals The State of South Dakota’s Rural Health Transformation (RHT) initiative has released its first round of Request for Proposals (RFP) focused on strengthening rural, tribal, and frontier health care systems through digital health modernization, coordinated delivery of care methods, and project management.

February 25, 2026 | Rural Health Transformation Gov. Rhoden and DOH Secure $189. 4 million for Rural Health Today, Governor Larry Rhoden and the Department of Health (DOH) announced they secured $189. 4 million in federal funding for Fiscal Year 2026 through the Rural Health Transformation (RHT) Program.

December 29, 2025 | Rural Health Transformation Stay in the Know | Email Subscription This project is not just about immediate improvements. It is a long-term investment in the health and resilience of South Dakota’s rural communities. As the project moves forward, we will continue sharing updates, resources, and stories from the people and providers making a difference.

Have questions or want to get involved? Submit a Question or Comment Here This webpage is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of the Rural Health Transformation Project, a financial assistance award totaling $189,477,607. 26, with 100% funded by CMS/HHS.

The contents are those of the SDDOH and SD DSS and do not necessarily represent the official views of, nor an endorsement by, CMS/HHS, or the U.S. Government.