Rural Health Transformation Program is sponsored by Minnesota Department of Health. Minnesota's program to support rural hospitals, Federally Qualified Health Centers, Certified Community Behavioral Health Centers, and Tribal Nations.

Rural Health Transformation Program - MN Dept.

of Health Office of Rural Health and Primary Care Rural Health Transformation Program Rural Health Care: Data Highlights Chartbook Workforce Advisory Council Feedback Rural Health Advisory Committee (RHAC) State Office of Rural Health (SORH) Health Care Workforce Data Related to Health Care Professions Health care loan forgiveness repayment International Medical Graduate program Medical Education and Research Costs (MERC) Office of Rural Health and Primary Care Rural Health Transformation Program Rural Health Care: Data Highlights Chartbook Workforce Advisory Council Feedback Rural Health Advisory Committee (RHAC) State Office of Rural Health (SORH) Health Care Workforce Data Related to Health Care Professions Health care loan forgiveness repayment International Medical Graduate program Medical Education and Research Costs (MERC) Office of Rural Health and Primary Care Office of Rural Health and Primary Care Rural Health Transformation Program H.

R. 1 amended section 2105 of the Social Security Act. The bill, signed into law on 7/4/2025, made major changes to public assistance programs such as Medicaid and SNAP.

These changes will lead to significant cuts to those programs, and loss of coverage for the Minnesotans who rely on them. In an attempt to encourage innovative forms of care delivery in rural areas, the legislation created a Rural Health Transformation Program as a one-time effort to fund rural health priorities over the next five years.

The bill language specifies that: Half (50%) of funds will be distributed equally to each state with an approved application over 5 federal fiscal years. This is equivalent to $25 billion that will be distributed to states over five years through annual payments between Federal Fiscal Years 2026-2030.

The remaining 50% of funds ($25 billion) will be distributed among at least one-fourth of the states with approved applications, at the discretion of the Centers for Medicare and Medicaid Services (CMS) Administrator. Minnesota's plan to improve rural health is built on actionable data, strong partnerships, and encouraging communities to have a say in what they need most.

The plan recommends new tools and methods to improve provider financial sustainability and extend access to care into trusted community settings throughout rural Minnesota. For summary information, review the Minnesota Rural Health Transformation Program Application Fact Sheet (PDF) . For detailed information, review the full Minnesota Rural Health Transformation Program Project Narrative (PDF) .

For answers to frequently asked questions, review the Rural Health Transformation Program FAQ (PDF) . The Minnesota Department of Health (MDH) will be awarded more than $193 million for rural health care initiatives across our state. MDH's application was submitted on November 4, 2025 requesting $1 billion over five years for an average of $200 million per year.

The application reflected input from more than 40 stakeholder meetings and nearly 350 public responses; state officials will continue engaging stakeholders throughout implementation.

MDH News Release: Minnesota awarded $193 million for first year of Rural Health Transformation Program MN Rural Health Transformation Outgoing Funding MN Rural Health Transformation Outgoing Funding Learn more about the Rural Health Transformation Program Learn more about the Rural Health Transformation Program Rural Health Transformation - Frequently Asked Questions (PDF) (external link to the Centers for Medicare and Medicaid Services (CMS) website.)

The following considerations impacted the amount of funding MN received: The percentage of the state’s population that is located in a rural census tract of a metropolitan statistical area (MSA). The proportion of rural health facilities (defined below) in the state relative to the number of rural health facilities nationwide. The situation of hospitals in the state.

Any other factors that the CMS Administrator finds appropriate. The Rural Health Transformation Plan must demonstrate how the state will: Improve access to hospitals and other providers for rural residents. Improve health care outcomes of rural residents.

Prioritize use of new and emerging technologies that emphasize prevention and chronic disease management. Initiate, foster, and strengthen local and regional strategic partnerships between rural hospitals and other providers to promote quality improvement, increase financial stability, maximize economies of scale, and share best practices. Recruit and retain clinicians.

Prioritize data and technology-driven solutions that help rural providers furnish health care services as close to the patient's home as possible. Outline strategies to manage long-term financial solvency and operating models of rural hospitals. Identify specific causes that are driving standalone rural hospitals to close, convert, or reduce service lines.

States will be allowed to use funds for 3 or more of the following eligible activities and must outline how these activities will achieve the goals of the transformation plan. Promoting evidence-based, measurable interventions to improve prevention and chronic disease management. Providing payments to health care providers for the provision of health care items or services, as specified by the CMS Administrator.

Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases. 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.

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.

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. Supporting access to opioid use disorder treatment services, other substance use disorder treatment services, and mental health services.

Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models. Additional uses to promote sustainable access to high quality rural health care services, as determined by the CMS Administrator. Minnesota's Request for Input Minnesota sought information from the public during its development of application to CMS.

Questions from that process are posted. Rural Health Transformation Plan - Public Comments (PDF) The Rural Health Transformation Program Activities are supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $193,090,618. 14 with 100 percent funded by CMS/HHS.

The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.