Fact Sheet: CMS Rural Health Transformation Program

Centers for Medicare and Medicaid Services Rural Health Transformation Program: Key Points

• $50 billion in Rural Health Transformation Program (RHTP) funding will be allocated over five years to approved states to support health transformation activities in state programs and rural health hospitals and providers.
• The deadline for states to apply for CMS RHTP funding is rapidly approaching. States must apply by Nov. 5, 2025.
• HIMSS has resources that can assist states, prospective hospitals and providers seeking funding in developing transformation plans, which are required for consideration to receive funding.
• To receive funding, states must submit an application by 11:59PM EDT on Nov. 5, 2025.
• Learn more and apply via the NOFO posting on grants.gov

What You Need to Know

The “One Big Beautiful Bill Act” (OBBBA) passed on July 4, 2025, includes $50 billion dollars in funding to support rural health hospitals and providers over the next five fiscal years.

• 50% will be distributed equally between all approved states
• 50% will be distributed based on need determined by
  • rural population
  • the proportion of rural health facilities in the state
  • the economic health of hospitals that primarily serve underserved populations
  • the potential impact of the individual state’s transformation plans
    

States will utilize the funding to support state government programs and allocate a portion of their funds to organizations that meet rural health criteria and commit to leveraging the funds to support three of the following activities:

• Promoting prevention and chronic disease management
• Providing payments to healthcare providers (note: these payments are limited to a certain percentage of the total funds awarded)
• Recruiting and retaining clinical staff in rural areas with a service commitment
• Fostering innovative, technology-driven solutions for prevention, chronic disease management, and improved care delivery in rural hospitals
• Upgrading IT capacity, efficiency, and cybersecurity
• Assisting rural communities to "right size" their healthcare delivery systems by identifying needed services and facilities
• Expanding mental health, opioid, and substance use disorder treatment
  

HIMSS Resources

HIMSS has a variety of resources to aid state leaders and prospective recipients of the RHTP funding prepare for their application.

These resources include:

• HIMSS Rural Health Transformation Program Office Hours: These discussions are designed to inform state leaders on best practices and suggest resources for applying for RHTP funding.
• Leveraging state health transformation plans that align with HIMSS Digital Health Indicator and Maturity Models that provide support and guidance on how to structure a digital health transformation plan.
• Utilize your local HIMSS Chapter; Chapters that have Advocacy Chairs are a great connector and conduit for establishing state relationships for future engagement opportunities.
• HIMSS administers three professional certification programs for healthcare information and management systems professionals
  

For more information, contact:

• Valerie Rogers, Senior Director, Government Relations Valerie.Rogers@himss.org
• Evan Dunne, Manager, Government Relations Evan.Dunne@himss.org