Rural Health Transformation Program – Transforming Rural Healthcare Delivery, Hospital Transformation
Can you apply?
This grant is for rural hospitals in Illinois seeking to transform healthcare delivery and improve access, quality, and outcomes.
Eligible hospitals must be located in rural areas of Illinois and registered in the state's application system. The program operates in two phases: Year 1 planning grants available to all eligible applicants, and Years 2-5 competitive implementation funding for those who completed Year 1.
Planning grants support development of transformation plans, regional partnerships, and infrastructure. Implementation grants fund service line transformation, care model development, staff hiring, and limited capital improvements.
All applicants must complete the Euna application and work with the Illinois Department of Healthcare and Family Services throughout the award process.
This grant is for rural hospitals in Illinois seeking to transform healthcare delivery and improve access, quality, and outcomes.
Eligible hospitals must be located in rural areas of Illinois and registered in the state's application system. The program operates in two phases: Year 1 planning grants available to all eligible applicants, and Years 2-5 competitive implementation funding for those who completed Year 1.
Planning grants support development of transformation plans, regional partnerships, and infrastructure. Implementation grants fund service line transformation, care model development, staff hiring, and limited capital improvements.
All applicants must complete the Euna application and work with the Illinois Department of Healthcare and Family Services throughout the award process.
Program description
The Rural Health Transformation (RHT) Program was designed to empower states to strengthen rural communities by improving healthcare access, quality, and outcomes through transforming the healthcare delivery ecosystem.
Illinois’ Rural Health Transformation Program will support rural communities across the State of Illinois in improving healthcare access, quality, and outcomes by transforming healthcare delivery. This program seeks to reshape healthcare delivery to better align with community needs and improve the sustainability of rural systems of care. Program Year 1 will support Planning Grants for awardees to develop a regionally tailored and data driven transformation plan that identifies delivery system gaps and unmet community needs and outlines strategies to transform service lines, deploy new models of care delivery, and test sustainable VBP (Value-Based Purchasing) methodologies. Planning awards will also be used to establish regional partnerships, participate in technical assistance and build initial infrastructure. Planning Grant awardees may apply for competitive Implementation awards for years 2-5. Implementation awards may be used to implement transformation plans, including supporting service line transformation; developing sustainable, high-quality care models through investment to establish regional partnerships; hiring clinical and non-clinical staff across hospitals and partnership entities to carry out the strategies identified in the transformation plan; and supporting limited capital expenditures for renovations to transition lines of service.
All RHT applicants must complete the Euna application. Once the completed application is received and approved, the Illinois Department of Healthcare and Family Services will collaborate with each subaward to complete the grant award process.
Note: Stevens Amendment
This funding opportunity is 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 $193,418,216.21 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.
The program is designed as a phased initiative that provides planning support to all eligible applicants in Year 1 and competitive implementation funding in Years 2–5. Illinois will award funding to eligible applicants in two phases:
Year 1: Funding supports Planning Grant awardees to complete foundational planning including submission of Transformation Plans, establishing regional partnerships, engaging with the Office of Medicaid Innovation (OMI), and establishing program infrastructure.
Years 2-5: Funding supports implementation of approved Transformation Plans that aim to improve access, quality, care coordination, and financial sustainability for rural communities in Illinois. This grant program utilizes federal CMS Rural Health Transformation (RHT) Program funds. Total amount of funding expected to be awarded through this NOFO is up to $28,191,393.00, subject to continued funding and program approval. Funding in future years is subject to CMS’s continuation, review, and award of future Rural Health Transformation funding. The release of this NOFO does not obligate the Department to make an award.
The total amount of funding $28,191,393.00 will be allocated equally among eligible hospitals. If all 97 eligible hospitals apply, this will result in an award amount of approximately $290,000 per hospital.
HFS expects to distribute funds evenly among eligible applicants. However, if fewer eligible applicants apply than expected, HFS may increase award amounts for applicants that meet all requirements, up to the maximum allowable funding. All proposed budgets are subject to HFS review and approval and may be adjusted as needed. Federal Assistance Listing: 93.798. Administered by the Illinois Department of Healthcare and Family Services via the Illinois GATA Catalog of State Financial Assistance (CSFA 478-00-3979).
Who can apply
Eligible applicants
Details
This grant is for rural hospitals in Illinois seeking to transform healthcare delivery and improve access, quality, and outcomes.
Eligible hospitals must be located in rural areas of Illinois and registered in the state's application system. The program operates in two phases: Year 1 planning grants available to all eligible applicants, and Years 2-5 competitive implementation funding for those who completed Year 1.
Planning grants support development of transformation plans, regional partnerships, and infrastructure. Implementation grants fund service line transformation, care model development, staff hiring, and limited capital improvements.
All applicants must complete the Euna application and work with the Illinois Department of Healthcare and Family Services throughout the award process.
How to apply
Application links
Required documents
- Euna application (completed and approved)
- Transformation Plan (for Year 1)
- Documentation of regional partnerships
- Data on healthcare delivery gaps and community needs
- Proposed budget
Program contact
- 👤 Dani Mendez
Funding track record
Recent awards under CFDA 93.798 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$281,319,361
-
$272,174,856
-
$233,639,308
-
$233,509,359
-
$223,476,949
-
$221,898,008
-
$218,862,170
-
$218,529,075
-
$216,276,818
-
$213,008,356
Top States by Funding
- TX 1 awards $281.3M
- AK 1 awards $272.2M
- CA 1 awards $233.6M
- MT 1 awards $233.5M
- OK 1 awards $223.5M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
FAQ
Who can apply for this grant?
Eligible rural hospitals in Illinois can apply. The program is designed for all eligible hospitals to receive Year 1 planning funding.
What is the award amount?
If all 97 eligible hospitals apply, awards are approximately $290,000 per hospital in Year 1. Fewer applicants may result in higher individual awards up to the stated maximum.
What can I use funding for?
Year 1 supports planning, regional partnerships, and infrastructure. Years 2-5 fund implementation including service transformation, staff hiring, care models, and limited capital improvements.
Is there a cost share requirement?
No cost sharing is required for this grant.
What is the deadline?
The June 17, 2026 deadline applies to Year 1 planning applications. Implementation deadlines for future years will be announced separately.
💡 Tips for applicants
- Start your Euna application early and coordinate internally before submission. The state reviews all applications carefully before award processing.
- In Year 1, focus your transformation plan on identified gaps in rural healthcare access. Use data to support your proposed strategies.
- Build strong regional partnerships before applying. Collaboration across hospitals and community entities strengthens implementation potential.
- Plan ahead for Year 2-5 implementation if selected. Competitive funding requires solid execution of your transformation plan.
- Track measurable outcomes for access, quality, and sustainability. CMS funding requires evidence of impact alignment with rural health priorities.
⚠️ Common mistakes
Applications fail when transformation plans lack clear data on local healthcare gaps or community needs. Weak regional partnerships or unclear implementation strategies reduce competitiveness. Budgets exceeding the hospital's proportional funding share without adequate justification get rejected.
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