Digital Health Modernization and Technology Grant Program

The Digital Health Modernization and Technology Grant Program is administered by the South Dakota Department of Health through South Dakota Health Link as part of the broader Rural Health Transformation initiative. This statewide initiative is funded through a federal award from the Centers for Medicare and Medicaid Services and is designed to strengthen rural healthcare systems, improve access to care, and enhance the sustainability of healthcare delivery across South Dakota. The program reflects a coordinated effort to modernize healthcare infrastructure through targeted investments in digital systems, interoperability, and workforce capacity. The primary purpose of this grant program is to support healthcare providers and organizations in upgrading, adopting, or replacing digital health technologies and related equipment. The program prioritizes entities serving rural and underserved populations, with the goal of improving patient safety, enhancing care coordination, increasing operational efficiency, and achieving better patient outcomes. Projects must align with clearly defined funding tiers that include electronic health record adoption, system upgrades, replacements, cybersecurity improvements, workforce training, and the development of regional innovation centers. Funding under this program is intended for one-time investments that lead to sustainable system improvements rather than ongoing operational expenses. Allowable uses include technology acquisition, system integration, consulting services, cybersecurity enhancements, training, and infrastructure upgrades. However, funds may not be used to duplicate existing funding sources, serve as a nonfederal match for other federal programs, or reimburse direct clinical services such as telehealth visits or billing activities. All funded activities must represent new initiatives or meaningful expansions of existing systems and must include appropriate monitoring and oversight. Eligible applicants include a wide range of healthcare entities such as federally qualified health centers, rural hospitals, tribal clinics, mental health centers, long-term care facilities, and other healthcare providers operating within South Dakota. Applicants must be physically located in the state or operate facilities within it. While the program emphasizes rural impact, organizations from all counties may apply, provided they demonstrate benefits to rural and underserved populations. Applicants must also comply with federal subrecipient requirements, including maintaining active registration in SAM.gov and adhering to uniform guidance regulations. The application process requires submission through an online portal and includes completion of a structured application form, a detailed project narrative, and a budget using provided templates. The narrative must address needs assessment, implementation planning, sustainability, and measurable outcomes. Applications are evaluated based on demonstrated need, interoperability and data integrity, feasibility of the project plan, and long-term sustainability. Additional considerations include organizational capacity, past performance, and technical expertise. The timeline for the current funding cycle includes an application deadline of June 30, 2026, with anticipated award decisions by mid-August 2026. The grant period may extend up to 19 months, with all funded activities required to be completed by September 30, 2027. Technical assistance webinars are offered to support applicants, and questions submitted during these sessions are documented and shared publicly. Future funding cycles are anticipated, with additional opportunities expected to follow a similar structure. Program contacts include South Dakota Health Link representatives, with support available via email and phone. Applicants are encouraged to utilize available resources such as templates, guidance documents, and technical assistance sessions to strengthen their submissions. The program represents a significant investment in digital health infrastructure aimed at transforming care delivery across South Dakota’s healthcare ecosystem.

Emphasize sustainability and interoperability alignment demonstrate clear rural impact and measurable outcomes ensure budget justification aligns with project scope