October 2026 issue

The Rural Health
Innovation Brief

Monthly insights for rural healthcare leaders

Over the next five years, $50 billion is moving from Centers for Medicare & Medicaid Services (CMS) to the states, and from the states to rural hospitals. Most of it will be awarded through state procurements that open and close with little notice. Once a month, Inneo and HDIG track where the Rural Health Transformation Program money is, what it is funding, and what rural leaders are doing with it.

In this issue
Good Samaritan Regional Medical Center campus, part of Samaritan Health Services in Oregon
This month's number
$209M

Iowa committed its full year-one Rural Health Transformation Program award on October 9: robotic orthopedic surgery, a maternal-fetal medicine telehealth network, and health information exchange for more than 100 facilities.

$142.5M

across 12 Ohio RHTP opportunities. The Rural Hospital Technical Assistance Center solicitation closes October 20.

Inneo

Where the money is, October 2026

Year two of the Rural Health Transformation Program started October 1. States are now announcing what the money buys.
Updated October 12, 2026

In the first nine days of October, CMS announced rural awards in five states: Iowa committed its full $209 million year-one award, Alabama funded nearly $55 million in maternal, emergency and cancer care, Louisiana put $37.7 million into its rural workforce, North Carolina more than $17 million into behavioral health, and South Dakota $7.2 million into ambulance-based telemedicine. Meanwhile, the application windows are narrowing: 22 states have at least one RHTP opportunity open, closing soon or coming, and in the other 28 every posted window has closed for now. Ohio has two solicitations closing this month. The tracker below has the detail.

RHTP tracker

The program. $10 billion a year into rural health from 2026 through 2030, totaling $50 billion. CMS awarded every state on December 29, 2025: half split evenly among all states, half based on the strength of each state's plan. Year-one awards run from $147 million to $281 million. The money goes to states, not hospitals. A hospital secures the funds through its state's approved plan and the procurements the state runs against that plan.

Where windows are open now · 22 states
Source: Rural Care Journey, October 12
MaineClosing soon
10 open · 3 closing soon · 1 upcoming of 17 posted
GeorgiaClosing soon
1 open · 2 closing soon · 5 upcoming of 18 posted
New HampshireClosing soon
6 open · 2 closing soon of 18 posted
MississippiOpen now
2 open · 4 upcoming of 15 posted
IllinoisOpen now
1 open · 3 upcoming of 8 posted
VirginiaClosing soon
1 open · 2 closing soon of 11 posted
MissouriOpen now
3 open of 9 posted
UtahOpen now
2 open of 25 posted
TennesseeClosing soon
1 open · 1 closing soon of 24 posted
MinnesotaOpen now
2 open of 20 posted
IowaOpen now
1 open · 1 upcoming of 12 posted
OhioClosing soon
2 closing soon of 12 posted
KansasOpen now
2 open of 11 posted
OklahomaClosing soon
1 open · 1 closing soon of 11 posted
West VirginiaOpen now
1 open of 46 posted
NebraskaOpen now
1 open of 16 posted
IndianaOpen now
1 open of 15 posted
MarylandOpen now
1 open of 14 posted
North CarolinaOpen now
1 open of 10 posted
MassachusettsOpen now
1 open of 6 posted
Rhode IslandOpen now
1 open of 6 posted
AlaskaOpen now
1 open of 3 posted

Orange bars show the share of a state's posted RHTP opportunities still open, closing soon or announced as upcoming. Across all 50 states, 68 windows are open, closing soon or coming. In the other 28 states, every posted opportunity has closed for now: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, New Jersey, New Mexico, New York, North Dakota, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Vermont, Washington, Wisconsin and Wyoming. Closed means the application window has passed, not that funds were awarded. Counts come from Rural Care Journey, which compiles state solicitations daily from public sources; confirm details with your state before applying.

Money put to work · first CMS report
Source: CMS, data as of July 31
40%
Nationally, states had put about $4 billion of nearly $10 billion in year-one funds to work.
13%
Ohio had put $26.5 million of its $202 million to work.
100%
Georgia, Hawaii and New Hampshire reported their full award at work. New York and West Virginia reported $0.

This is CMS's first state-by-state report on year-one spending. It covers December 29, 2025 through July 31, 2026, and CMS says it is not a full view of state progress. The next update follows states' November 30 quarterly reports. Read the CMS report · Becker's summary

Ohio. $202 million in year one, with $142.5 million across 12 state opportunities. As of July 31, CMS reports $26.5 million at work, including $10 million to Ohio University for rural workforce development, $7 million for maternal and infant home visiting, $4 million for rural school-based health centers and $2 million to the Ohio Pharmacists Association. Two solicitations are closing now, including the Rural Hospital Training and Technical Assistance Center on October 20.

What moved in October
$209M
Iowa committed its full year-one award through Healthy Hometowns: robotic orthopedic surgery, a maternal-fetal medicine telehealth network, and health information exchange for 100+ facilities. October 9.
$55M
Alabama funded nearly $55 million in rural maternal, emergency and cancer care, including telerobotic ultrasound. October 1.
$37.7M
Louisiana put toward its rural workforce, including $12.7 million to help 53 rural providers recruit and retain clinicians. October 9.

Also announced: North Carolina, more than $17 million for rural behavioral health and mobile crisis teams (October 7), and South Dakota, $7.2 million for ambulance-based telemedicine (October 2).

Rules that matter to a hospital

From the CMS post-award FAQ (April 2026): CMS does not pre-review state RFPs or contracts. States may talk with prospective subrecipients before their budgets are approved, but cannot sign agreements or let work start until then. Any funds not obligated within the budget period are redistributed to other states. Drawn funds cannot sit for more than three working days, which pushes states toward reimbursement-style arrangements. Changing an approved initiative takes written CMS approval and data.

What is next

Federal fiscal year 2027 began October 1, and states file non-competing continuation applications for year two. Expect more state announcements like October's as year-one money moves to hospitals and partners. Funds a state does not obligate in time go to other states, so open windows matter.

Sources: CMS, Iowa · CMS, Alabama · CMS, Louisiana · CMS, RHTP obligated funds report · CMS post-award FAQ · Rural Care Journey, all states · Rural Care Journey, Ohio · RHIhub, Ohio RHTP

Funding + deadlines

Oct 19
PRIMED-AI Model-to-Clinic due
Oct 20
Ohio RHTP Rural Hospital Technical Assistance Center due
Nov 30
AscendRural Summit, Eagan MN
Dec 31
USDA rural economic development loans and grants

October 19 — NIH Common Fund PRIMED-AI Data-to-Model (RFA-RM-27-012) and Model-to-Clinic (RFA-RM-27-013) due. Model-to-Clinic is where clinical sites take part; rural systems that want early access to validated AI tools should watch this one.

October 20 — Ohio RHTP: Rural Hospital Training and Technical Assistance Center (DOH59719) proposals due to the Ohio Department of Health. ODH posts new RHTP solicitations on the same page; Ohio has most of its $142.5 million in state opportunities still to award.

November 30 – December 2 — AscendRural Summit 2026, Eagan, Minnesota.

December 31 — USDA Rural Economic Development Loan and Grant. Local electric and telecom utilities apply and re-lend; medical facilities and equipment for rural residents are an eligible project. Ask your utility or USDA Rural Development state office.

Rural innovation story

Bringing urologic care home in Puerto Rico
Ponce, Puerto Rico
Dr. Javier Castillo Ortiz is a urologist in Ponce, Puerto Rico. Many patients at his practice, UroSalud, come from rural and underserved communities, where transportation and limited specialist availability make evaluation and follow-up harder.

In selected patients, Dr. Castillo uses MenHealth's MyUroflow app to support screening and to monitor urinary function over time, particularly after surgery. The app uses sound to estimate urinary flow, so patients can record at home for clinical review.

Post-operative monitoring has become the most valuable use. Changes in flow, especially with new or worsening symptoms, can prompt an earlier evaluation, with the goal of catching problems before they become avoidable emergency visits. The recordings add to clinical evaluation and other testing; flow measurements alone do not decide whether a patient can safely stay home, and whether remote monitoring reduces emergency visits still needs study.

For the practice, the result is a broader view of how patients are doing between visits, and fewer trips made only for a flow test. His team is now exploring a pathway that combines symptom screening, patient education and home recordings to prioritize evaluation before a first appointment.

Why it matters for a rural hospital: distance to a specialist is the same problem in every service line. States are now putting RHTP money into care that travels to the patient: in October, Iowa announced a maternal-fetal medicine telehealth network and Alabama funded telerobotic ultrasound.

Story provided by MenHealth, an HDIG client, and reviewed by Dr. Castillo.

One practical fix

Check your October telehealth claims.
Effective October 1, 2026
Rural Health Clinics and FQHCs can no longer bill distant-site telehealth with the single code G2025. Bill the individual CPT or HCPCS code for the service, with modifier 95 for audio-video or 93 for audio-only. The CY 2026 payment rate stays $97.53. Confirm your charge rules and claim edits were updated, and watch early October claims for G2025 rejections.

Flagged in HDIG's Mid-Week Impact report. Source: CMS MLN Connects, September 10, 2026.

From the field

"Being an independent rural hospital is only going to get harder, which is why we have focused on identifying a partner."

Kyle Kramer, CEO, Day Kimball Health (Putnam, Conn.), on the Becker's Healthcare Podcast

More rural hospitals are finding partners without selling: management agreements, affiliations, and networks such as North Dakota's 23-hospital Rough Rider network, which has secured supply discounts of up to 20%.

Source: Becker's Hospital Review, October 7, 2026.

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