September 22, 2025

Important Dates:

• CMS released the RHTP Application Instructions on September 15, 2025.
• The application is due to CMS November 5, 2025 (HCPF’s target completion date is October 31, 2025).
• The H.R. 1 funding decision on the use of funds is subject to the December 31, 2025 cutoff date. 

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:

• The application includes a comprehensive list of restrictions that can be found here.  

HCPF Application Updates:

• The Department (HCPF) has secured a vendor, Government Performance Solutions (GPS).
• The Department is working alongside key stakeholders, Colorado Rural Health Center, and GPS to gather all pertinent information for the application and the requirements for submission.

Program 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.

Application Information Will Include:

• A 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.
• The Health Care Policy and Financing (HCPF) application is due to CMS November. 5, 2025 (HCPF’s target completion date is October 31, 2025).

Communication Plan:

• Weekly Newsletter to Stakeholders (first newsletter was published 9/15/25).
• Weekly meetings with a core group to develop application. 
• Broad stakeholder meetings. 
• Additional details to come.

Stakeholder Engagement: 

• Initial stakeholder engagement began in August 2025. 

• HCPF will work with stakeholders to create and aggregate the application content through an Application Core Working Group and additional stakeholder meetings with opportunities for input and feedback. 

• The RHTP Application Core Stakeholder Working Group is expected to begin the week of Sept. 22, 2025, and will include those who wish to participate from the following categories: 
• Colorado Rural Health Center 
• Colorado Hospital Association
• Colorado Behavioral Healthcare Council
• Colorado Community Health Network (FQHCs)
• FQHC CEOs
• Colorado Rural Futures Group
• Colorado Health Initiative
• Western Healthcare Alliance
• Eastern Plains Healthcare Consortium
• Rural Hospital CEOs
• Department of Public Health and Environment
• Office of eHealth Innovations
• All 4 Regional Accountable Entity CEOs
• The Emergency Medical Services Association
• Consumer Advocate representative

Permitted Activities:

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

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.

Helpful Links:

Rural Health Transformation Program Fact Sheet 

Rural Health Transformation Program Bill

CMS Rural Health Transformation Program

HCPF Colorado Rural Health Transformation Program Website

Email Address for All RHTP Correspondence:

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

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