HealthOctober 16, 2025

The Rural Health Transformation Program: A $50 Billion Opportunity for Digital Acceleration and Solutions for Clinics

Rural health care organizations provide a critical safety net for approximately 20% of the US population, including significant numbers of older adults and people from historically underserved socioeconomic communities.

Despite serving these higher-needs populations – with the added challenges of geographic barriers – rural health care organizations are also severely short-staffed, underfunded, and are being forced to shutter their doors at an unsustainable pace.

To combat the risks of leaving huge swathes of the US without access to necessary inpatient, emergency, and outpatient services, Congress enacted the Rural Health Transformation Program, which includes $50 billion in funding for rural health.

The funding will be distributed in $10 billion installments between fiscal years (FY) 2026 and 2030, with half of each year’s funding distributed equally among all states and the other 50% distributed according to demonstrated need.

States will need to apply for each portion of the funding, which can be spent on pre-approved areas of care transformation strategies and technologies for the providers and health systems in their regions.

What do rural health care organizations need to know about how to participate in the Rural Health Transformation Program?

What is the Rural Health Transformation Program?

The Rural Health Transformation Program was created to support rural and safety net organizations, including Critical Access Hospitals (CAHs), Federally Qualified Health Centers (FQHCs) receiving Section 330 grants, and certain behavioral and mental health care providers serving rural populations.

By providing $50 billion in funding for tools and techniques to promote proactive, data-driven, comprehensive care, the program is intended to equip rural health care providers with a greater ability to manage the emerging “do more with less” environment.

How to apply for the Rural Health Transformation Program and determine eligibility

According to CMS, all 50 states (excluding Washington, DC and US territories) are eligible to apply for the $25 billion in baseline funding and the equal amount of “workload” funding, which will be shared out according to rural factors data, application information, data metrics, and existing state policies.

States can apply even if they do not have large rural populations or any designated rural hospitals. Applications must come from state governments, not from individual provider organizations, and funding will be distributed at the state level to be shared with provider entities according to the state government’s decision-making process.

However, state officials are encouraged to consult with their local health care community and will be allowed to subcontract Rural Health Transformation Program funds to regional partners, so rural health leaders should consider how to best collaborate with their state entities to identify their most pressing needs and craft a compelling application for the discretionary portion of the funding.

What can states spend the Rural Health Transformation Program funding on?

States can use the funding for programming or technologies that support access to care, develop the workforce, or foster innovative use of data to connect and empower providers. They are actively encouraged to share with CMS how new technology solutions will help them meet high-priority rural health goals, such as improving chronic disease management outcomes.

Specific areas of focus for the Rural Health Transformation Program include the following:

  • 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
  • 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 designed to promote sustainable access to high quality rural health care services

States submit their initial funding applications by November 5 with CMS awards made by December 31, 2025. Applications are submitted through Grants.gov.

To promote accountability, states will be required to submit performance assessments and evaluations, as well as participate in monthly calls with CMS to share their successes and challenges. Throughout the program, CMS will offer recommendations, provide assistance with sharing improvement concepts across all state grantees, and evaluate proposed changes to individual state plans to better meet evolving needs.

Choosing the right technology for rural health programs: A guide for clinical leaders

State officials will need to work closely with the provider community to develop an application for workload funds, which means executive leaders at rural health care organizations should take time to identify their areas of greatest need – and have their detailed operations and technology wish lists ready to go.

These applications should include specific technologies to support areas of improvement that can have an outsized impact on care delivery for high-needs rural populations, such as workforce development, recruitment and retention; evidence-based clinical care delivery; and technology to support sustained high-quality outcomes.

For example, trusted and workflow-friendly access to the latest clinical guidelines and drug decision support is essential for both physicians and nurses working in high-complexity, limited resource environments like rural hospitals. Without easy access to many types of specialists, clinicians practicing in rural settings need a clinical equalizer to help them make the right decisions for their patients in the moment. These resources also help address gaps in clinical guidelines/protocols that influence outcomes.

Evidence-based clinical decision support solutions, such as Wolters Kluwer’s widely used UpToDate. For over 30 years, clinicians and care teams have trusted UpToDate for clear answers and recommendations to support their treatment of patients. UpToDate can quickly provide answers directly in the EHR to demonstrably reduce diagnostic errors, improve the delivery of standardized care , and sharpen performance on clinical quality measures.

In addition, Lippincott Solutions provides workforce development resources across a nurse's career, including leadership development programs, alongside robust point of care resources to ensure the delivery of high-quality patient care by the clinical care team. Furthermore, Lippincott Solutions provides quality improvement resources such as guidelines to improve the delivery of standardized nursing care plans, and actions plans to address nursing sensitive indicators linked to value-based care outcomes.

Similarly, digital tools can help tackle medication errors, which are often more common in small hospitals. Medication errors are now the third-leading cause of death in the US, contributing to approximately 200,000 avoidable deaths per year. In environments with limited pharmacy or specialist support, like many rural health organizations, digital tools are essential for offering guidance on dosing, flagging potential adverse interactions, avoiding drug diversion, and enhancing antimicrobial stewardship.

Rural health leaders should look for integrated, evidence-based solutions like UpToDate Lexidrug, Sentri7 Drug Diversion, and Sentri7 Antimicrobial Stewardship and AUR Reporting to support clinical care teams in appropriately managing medication safety for their patients and improving regulatory compliance. Ovid Synthesis can also provide a web-based platform, with executive dashboards, to enables organizations to identify clinical or operational improvement initiatives, convene an interprofessional team from across the organization to systematically address the issue, quantify the improvement with an ROI calculator and sustain and spread the improvement.

For rural populations, who may have limited access to follow-up appointments, clear and understandable patient education is also crucial. UpToDate Patient Education solutions provide plain-language, culturally sensitive, and multilingual materials that improve health literacy. Helping patients understand their conditions and adhere to treatment plans is essential for managing chronic disease effectively and may result in lower hospital readmission rates.

All of these areas align tightly with the Rural Health Transformation Program’s focus on improving care quality, strengthening the skills and productivity of a limited workforce, and reducing the incidence of avoidable adverse events that lead to higher spending, increased utilization, and poor patient outcomes.

By advocating for funding for these types of tools, rural health leaders can multiply the productivity and effectiveness of the workforce while providing a layer of trusted support and specialty-level knowledge for clinicians who must often wear many hats in a time of ongoing workforce shortages.

What are the next steps for rural health care organizations?

Rural health leaders should contact their state officials for information on the state’s plans for applying for funding. Organizational leaders should also identify internal stakeholders willing and able to work with state departments on an ongoing basis around Rural Health Transformation Program administration to ensure the organization has an active advocate for its specific needs.

As rural health organizations prepare to seize this unprecedented $50 billion opportunity, the choice of partner will define the impact and sustainability of their transformation. Wolters Kluwer Health stands apart as the trusted ally for rural providers and state leaders, offering not only proven, evidence-based digital solutions but also deep expertise in navigating the complexities of rural healthcare. Our long-standing collaborations with state agencies and frontline organizations have delivered measurable improvements in care quality, workforce development, and financial sustainability—even in the most resource-constrained environments.

To learn more about how integrated, evidence-based digital solutions can empower clinicians, elevate care quality, and contribute to long-term financial sustainability in an uncertain rural health environment, contact Heidi Alexander at [email protected].

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