Rural Health Transformation Program RFI
Request for Information
H.R. 1, enacted on July 4, 2025, established a federal $50 billion Rural Health Transformation Program (RHTP) to stabilize and strengthen rural health care delivery systems, including hospitals and other providers.
States must apply for funding from the Centers for Medicare and Medicaid Services (CMS). It is expected that the Department of Public Health and Human Services (DPHHS) will be allocated funds to award to eligible entities in accordance with Montana’s approved rural health transformation plan.
DPHHS is proactively seeking input through this Request for Information (RFI) to help shape Montana’s RHTP application and overall strategy. Feedback from rural health care providers, hospitals, clinics, community organizations, payers, workforce entities, universities, tribal nations, and local governments will be critical to informing the State’s rural health transformation plan. DPHHS invites interested parties to submit ideas, possible projects, and other relevant information, including projected project budgets, for preliminary consideration.
This RFI can be found on the Montana Acquisition & Contracting System (eMACS) under RFI Number DPHHS-RFI-2026-0633AP. In the keyword search function, use the word “Transformation” to locate this particular RFI. If additional assistance is needed, please reach out to the Department of Administration at 406-444-2575.
Background
H.R. 1 created a $50 billion fund for states with an approved rural health transformation plan, with $10 billion available per year from FFY2026 through FFY2030. Half of the funding will be split evenly between states with an approved transformation plan, and the other half will be distributed to states at CMS’ discretion based on each state’s rural population, rural health facilities, and other CMS-defined characteristics.
CMS has not issued RHTP guidance nor established a deadline for rural health transformation plan applications as of the date of issuance of this RFI. It is anticipated that CMS will award funds no later than December 31, 2025.
To receive funding from the RHTP, states must submit a rural health transformation plan to CMS. The plan must describe how the state would use program funds to:
- Improve access to hospitals, other health care providers, and health care items and services furnished to rural residents of the state;
- Improve health care outcomes for rural residents;
- Prioritize the 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 health care providers to promote measurable quality improvement, increase financial stability, maximize economies of scale, and share best practices in care delivery;
- Enhance economic opportunity for, and the supply of, health care clinicians through improved recruitment and training strategies;
- Prioritize data- and technology-driven solutions that help rural hospitals and other rural health care providers furnish high-quality care as close to patients’ homes as possible;
- Outline strategies to manage the long-term financial solvency and operating models of rural hospitals in the state; and
- Identify specific factors driving the increasing rate of closures, conversions, or service reductions among stand-alone rural hospitals.
Funds must be used for three or more of the allowable activities, including:
- Promoting evidence-based, measurable interventions to improve prevention and chronic disease management;
- Providing payments to health care providers for furnishing health care items or services, as specified by the Administrator;
- Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic conditions;
- Providing training and technical assistance to support the development and adoption of technology-enabled care delivery models—such as remote monitoring, robotics, artificial intelligence, and other advanced technologies;
- Recruiting and retaining clinical workforce talent in rural areas, with a minimum five-year service commitment to rural communities;
- Providing technical assistance, software, and hardware to support significant information technology advancements that enhance efficiency, cybersecurity, and patient health outcomes;
- Assisting rural communities in right-sizing their health care delivery systems by identifying appropriate service lines—including preventative, ambulatory, pre-hospital, emergency, acute inpatient, outpatient, and post-acute care services;
- Supporting access to opioid use disorder treatment services, other substance use disorder treatments, and mental health services;
- Developing projects that support innovative models of care, including value-based care arrangements and alternative payment models, as appropriate; and
- Supporting additional uses that promote sustainable access to high-quality rural health care services, as determined by the Administrator.
Information Requested
DPHHS requests information in response to the rural health transformation plan elements listed above. Respondents should note that the Department considers RHTP funds to be one-time-only in nature. Proposals that require ongoing funding without a robust sustainability plan will not be prioritized for review. Organizations may partner in their response to this RFI.
Response Guidance:
Reponses can be submitted in eMACS or via email to dphhspio@mt.gov (Subject line: RHTP RFI). Please submit by August 22, 2025. Responses will continue to be accepted after that time, but those submitted by the deadline will be prioritized for review.
Important Notice:
This RFI is being sought strictly for the purpose of gaining knowledge and should not be construed as intent, commitment, or promise to acquire services, supplies, or solutions offered.
No contract will result from any response to this RFI.
Information submitted in response to this RFI will become the property of the State. Do not submit confidential information. The State will reject any response that has been marked as confidential or proprietary, including cost.
The State will not pay for any information herein requested nor is it liable for any cost incurred by a respondent.
Procedural, administrative, or contractual questions must be submitted using the Q & A Board in eMACS prior to the Q & A Submission Close Date deadline or via email to dphhspio@mt.gov (Subject line: RHTP RFI).
DPHHS appreciates your response to this request.