Rural Health Innovation Fund

The Rural Health Innovation Fund is administered by the New Mexico Health Care Authority as part of the state’s broader Rural Health Transformation Program, which is supported through federal funding from the Centers for Medicare and Medicaid Services. The program is designed to address persistent health care challenges in rural, frontier, and Tribal communities across New Mexico, including limited access to care, workforce shortages, infrastructure gaps, and disparities in health outcomes. By issuing this Request for Proposals, the agency seeks to fund implementation-ready projects that can deliver measurable improvements in access, quality, and sustainability of health care services. The primary purpose of the fund is to support practical and innovative solutions that respond directly to locally identified health care needs. Applicants are required to define a specific challenge affecting a target population and geography within New Mexico, propose a detailed intervention, and demonstrate how the project will improve care delivery or outcomes. The program is flexible in terms of project design and does not mandate a single model. Eligible activities may include expanding service lines, deploying technology, strengthening care coordination, purchasing equipment, or forming regional partnerships that improve system capacity and access. Funding is intended strictly for implementation-focused activities and may not be used for general operating support, duplicate existing funding, or cover services that are otherwise reimbursable through Medicaid, Medicare, or private insurance unless specifically approved. Allowable costs include personnel, equipment, programmatic services, data collection, and administrative expenses within defined limits. Certain expenditures such as infrastructure upgrades or equipment purchases may require prior approval and are subject to caps. The total funding available through the program is approximately forty seven million dollars, though individual award sizes are not predetermined and may vary depending on project scope and evaluation outcomes. Eligibility for the program is broad and includes health care providers, Tribal entities, community based organizations, local governments, academic institutions, vendors, and other organizations that can demonstrate a direct role in implementing the proposed project. Applicants must show a clear connection to New Mexico communities, particularly those that are rural, frontier, or Tribal. The selected entity will serve as the primary contractor and will be responsible for managing the project, budget, reporting, and compliance requirements, including oversight of any partners or subcontractors involved. Applications must be submitted electronically through the designated Submittable portal and include all required forms, certifications, workplans, cost proposals, and narrative responses. A pre proposal conference was held on July 6, and applicants were given the opportunity to submit written questions prior to that date. Proposals must include detailed information about the project design, implementation plan, expected outcomes, sustainability strategy, and budget justification. Evaluation criteria include organizational capacity, project feasibility, alignment with program goals, and overall value of the proposed investment. The submission deadline for proposals has been extended and is now August 3, 2026 at 5:00 PM Mountain Time. Following submission, proposals will undergo evaluation through mid August, with potential finalist presentations and contract negotiations occurring thereafter. Contract awards are anticipated around October 1, 2026. Funded projects are expected to begin implementation shortly after award and must align with reporting, monitoring, and compliance requirements established by the Health Care Authority. The program emphasizes sustainability, requiring applicants to demonstrate how project benefits will continue beyond the funding period.

Focus on implementation readiness, measurable outcomes, and sustainability; clearly define the health care challenge and demonstrate direct community impact; align budget and workplan closely with project activities