RHTP Value-Based Purchasing Grant Program

The Value-Based Purchasing initiative is a funding opportunity released by the Florida Agency for Health Care Administration as part of the broader Rural Health Transformation Program, a federally funded effort supported through a cooperative agreement with the Centers for Medicare and Medicaid Services. The program is designed to strengthen rural healthcare systems across Florida by investing in infrastructure and operational capabilities that enable providers to transition from traditional fee-for-service reimbursement models to value-based care arrangements. This initiative aligns with statewide goals to improve care quality, enhance outcomes, and reduce healthcare costs through coordinated, data-driven delivery systems. The primary purpose of this funding opportunity is to equip rural healthcare providers with the tools, systems, and organizational capacity necessary to participate in value-based purchasing arrangements, particularly with Medicaid Managed Care Organizations. Rural providers often face structural barriers such as limited access to analytics, care coordination infrastructure, and financial modeling expertise, which hinder their ability to engage in performance-based contracts. This initiative addresses those gaps by funding infrastructure development in areas such as population health management, interoperability, data analytics, and care coordination systems. Funding under this opportunity is strictly limited to infrastructure and capacity-building activities. Allowable uses include development of financial modeling tools, implementation of population health platforms, hiring of care coordination staff, and integration with health information exchange systems. Funds may not be used for direct clinical services, inpatient operations, or reimbursement of fee-for-service activities. Additional restrictions include a cap on administrative costs and limits on consulting subcontractor expenses. Awardees are also required to demonstrate operational use of funded systems and maintain ownership of technology investments. Eligibility for this program is limited to rural healthcare providers and regional collaboratives serving rural populations in Florida. Eligible applicants include rural hospitals with outpatient services, primary care practices, federally qualified health centers, rural health clinics, and county health departments. Applicants must demonstrate at least five years of operational history, financial stability, and the ability to manage federal funding. While applicants may be headquartered outside rural areas, all funded activities must directly support rural communities and meet defined rural eligibility criteria. The application process requires submission of a comprehensive application package that includes multiple structured sections such as organizational capacity, project narrative, partnership agreements, implementation work plan, and sustainability plan. Applicants must also provide documentation of partnerships with Medicaid managed care organizations, health information exchange entities, and care transition partners. Applications are evaluated through a two-stage process, beginning with a pass/fail compliance review followed by a detailed technical evaluation based on criteria such as feasibility, infrastructure readiness, and sustainability. The application deadline for this funding opportunity is June 10, 2026, with anticipated awards issued in July 2026 and project implementation beginning August 1, 2026. The first-year funding period extends through July 30, 2027, with continuation funding contingent on performance and federal approval. Awardees are expected to meet key milestones, including execution of at least one value-based purchasing contract within 24 months and enrollment in the Florida Health Information Exchange within 90 days of award. Overall, this initiative represents a significant investment in transforming rural healthcare delivery in Florida by building the foundational infrastructure required for long-term participation in value-based care models. It emphasizes sustainability, accountability, and measurable improvements in healthcare outcomes, positioning rural providers to thrive in an evolving healthcare reimbursement landscape.

Focus on demonstrating clear infrastructure readiness strong Medicaid MCO partnerships and a realistic path to executing a value based purchasing contract within 24 months