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State details $233 million rural health transformation plan, sets grant and RFP timeline
Summary
DPHHS officials outlined milestones for the $233 million first‑year Rural Health Transformation Program — vendor fairs, RFPs for a Center of Excellence and implementers, staffing hires, and grant platforms — and said year‑one funds must be obligated by Oct. 30, 2026.
Montana officials gave the interim committee a detailed account of the state's Rural Health Transformation Program (RHTP), including procurement milestones, governance plans and a first‑year award that will require rapid obligational decisions.
Jean Hermanson, deputy Medicaid director, told the committee the state held a vendor fair in mid‑March that drew more than 900 registrants and released two initial RFPs in early April for the Center of Excellence strategy/analytics vendor and an implementer contractor. He said the department received an RHTP award of "$233,000,000 for year 1," and has updated implementation plans submitted to CMS.
The department described a three‑pronged approach to getting funds to recipients: direct grant opportunities (for hospitals, universities, tribes, FQHCs and nonprofits), RFPs for primary contractors (for example the Center of Excellence analytics contractor) and hybrid models where prime contractors administer subgrants through Submittable. Examples of intended investments include paramedicine programs, telehealth equipment and training, EHR modernization, pharmacy point‑of‑care testing, and school‑based services.
Hermanson said the state executed an MOU with the Department of Labor and Industry to lead workforce activities under RHTP and has onboarded several staff members in the RHTP unit; more hires, including a program director, are expected before July. The department plans to open additional RFPs and post grant opportunities this summer, and to accept applications beginning in July.
On obligations and spending windows, Hermanson told the committee that year‑one funds must be obligated by Oct. 30, 2026, and spent by Sept. 2027; subsequent years will follow the same pattern of a one‑year obligation window and up to two years to expend funds.
Hermanson described plans for an advisory Center of Excellence made up of 25 slots (including facility representatives, tribal and consumer seats) and said applications to fill those seats opened online with selections planned for June. He also outlined EMS initiatives under the program: community integrated paramedicine pilots, a prehospital blood administration pilot and an emergency dispatch update, with a mix of grants and RFPs to support implementation.
Committee members asked about the prospects for shared electronic health record approaches, workforce retention and how the state will sequence procurements; Hermanson said the state is focusing on supporting facility choices for EHRs rather than seeking a single statewide vendor and flagged workforce and procurement staging as priorities for upcoming months.
What's next: Evaluations for the first two RFPs will run through late May, a school‑based RFP is planned for June, and grant opportunities will begin appearing in July. The department expects a CMS site visit as part of federal oversight this summer and will continue stakeholder outreach as it ramps the program.
