Rural Hospital Peer Group Grant Program

The Ohio Department of Health administers the Rural Health Transformation Program to strengthen healthcare systems in rural communities across the state. This funding opportunity is designed specifically for hospitals classified within the rural peer group as defined by Ohio Administrative Code and excludes those participating in certain non-statewide state-directed payment programs. The program is supported by federal authorization and aligns with broader national priorities to improve healthcare access, quality, and sustainability in rural areas. The primary purpose of this funding opportunity is to provide financial support to eligible rural hospitals to enhance their long-term sustainability and integration within broader healthcare systems. The program emphasizes participation in rural healthcare hubs or clinically integrated networks, recognizing that collaboration and system-level transformation are key to improving care delivery. The initiative is grounded in strategic goals such as sustainable access, workforce development, innovative care delivery, and technology advancement. Funding under this opportunity totals over thirty million dollars and will be distributed equally among all eligible hospitals that apply and meet the criteria. The funding is intended as a one-time allocation and must be fully expended by June 30, 2027, with no opportunity for extensions or additional funding beyond the contract term. Funds are distributed on a reimbursement basis and must align with approved activities and documented expenditures reported quarterly. Allowable uses of funding include a wide range of healthcare improvement activities such as chronic disease management, workforce recruitment and retention, implementation of advanced technologies, behavioral health services, and infrastructure improvements. However, strict limitations apply, including prohibitions on construction, lobbying, and duplicative clinical service payments. Administrative costs are capped at ten percent of the total award, and additional caps apply to certain categories such as provider payments and technology initiatives. To participate, hospitals must submit a letter of interest confirming their intent to engage in the program and utilize funds appropriately. This is followed by a detailed budget submission outlining planned expenditures. Applications must be submitted electronically via email, and incomplete or late submissions will not be considered. The process includes an optional pre-application information session and a defined inquiry period for questions. The application timeline includes key milestones beginning with an inquiry period in mid-June, followed by a letter of interest deadline in early July and a final budget submission deadline in mid-August. Project start dates are determined upon approval of submitted budgets. Participating hospitals are required to commit to forming or joining a healthcare network by September 30, 2027, and must provide ongoing quarterly reporting to demonstrate progress and compliance with program requirements.

Submit early budgets for processing; ensure eligibility criteria are met; align budget with allowable costs; avoid unallowable expenses such as construction or lobbying