Rural Health Facilities Capital Improvement Program

The Rural Health Transformation Program Rural Health Facilities Capital Improvement Program is administered by the Louisiana Department of Health through its Office of Rural Health Transformation and Sustainability. This initiative is funded through a cooperative agreement with the U.S. Department of Health and Human Services Centers for Medicare and Medicaid Services, and is designed to strengthen rural healthcare systems across Louisiana. The program reflects a broader statewide effort to modernize healthcare infrastructure, expand access to essential services, and support innovative and sustainable care delivery models in rural communities. It aligns with federal and state priorities focused on improving healthcare access, quality, and outcomes for underserved populations. The primary purpose of this funding opportunity is to support targeted capital investments that improve access to care, enhance service delivery capacity, and strengthen care coordination across rural Louisiana. The program emphasizes projects that are ready to implement and capable of producing measurable outcomes. These outcomes may include increased patient capacity, reduced wait times, expanded specialty services, improved care coordination, and enhanced operational efficiency. Applicants are required to demonstrate how their proposed investments directly link to improved healthcare access and outcomes, as well as how they support long-term sustainability within rural healthcare systems. Funding supports one-time capital investment projects such as facility renovation or expansion, medical equipment acquisition, and technology infrastructure improvements. Allowable uses include clinical and non-clinical space upgrades, structural improvements, diagnostic and emergency equipment, and telehealth or connectivity infrastructure. However, funding cannot be used for routine operational costs such as salaries, supplies, or leases, nor for new construction projects. All funded expenses must be incurred upfront by the recipient and reimbursed upon submission of appropriate documentation, ensuring compliance with federal and state financial management requirements. Eligibility is limited to organizations that meet the Rural Health Transformation Program definition of rural and are licensed healthcare providers within Louisiana. Eligible entities include rural health clinics, federally qualified health centers, critical access hospitals, rural hospitals, EMS providers, behavioral health providers, and independent rural practices such as physicians, pharmacies, and dental providers. Applicants must demonstrate documented need related to financial, infrastructure, or access challenges affecting rural patients. In addition, applicants are required to provide a minimum 10 percent cost share through cash or in-kind contributions, demonstrating commitment to project sustainability. The application process requires submission of a comprehensive application including organizational information, a statement of work, and detailed project documentation. Applicants must outline project scope, milestones, budget, and anticipated outcomes, along with a sustainability plan describing how the project will remain operational beyond the grant period. Required documentation includes financial and regulatory compliance materials such as tax identification, licensing, and vendor registration. Applications are evaluated based on criteria including documented need, project feasibility, impact on access and quality, sustainability, and cost effectiveness. The application timeline for the first year of funding includes a deadline for written questions in June 2026, followed by a final application submission deadline of July 10, 2026. Applications are reviewed during July and early August, with notifications of intent to contract issued shortly thereafter. While this opportunity is offered once per grant budget year, it is part of a multi-year program with opportunities for continued funding in subsequent cycles. Projects may span multiple years, but Year 1 funds must be expended by September 30, 2027, and funded improvements must be maintained for at least five years. Award amounts range from 100,000 to 10,000,000 dollars depending on project scope, with total program funding for Year 1 set at approximately 39.9 million dollars. The broader federal award supporting the program exceeds 200 million dollars over a multi-year performance period extending through 2030. Funding is distributed on a reimbursement basis tied to project milestones and deliverables, and recipients must comply with ongoing reporting requirements including quarterly and annual performance updates. These reporting requirements ensure accountability and alignment with program goals focused on improving rural healthcare access and sustainability.

Focus on measurable outcomes tied to rural health access; demonstrate readiness and feasibility; provide strong sustainability plan; align with priority funding areas; clearly justify rural impact