A Rare Opportunity to Reimagine Rural Health
The One Big Beautiful Bill Act (OBBA) established the $50 billion Rural Health Transformation (RHT) Fund, giving states a once-in-a-generation opportunity to strengthen rural healthcare.
By November 5, 2025, each state must submit a transformation plan to CMS. These plans must go beyond compliance; they must reshape rural health systems so they can thrive for the next decade.
Rural Transformation Fund Eligibility
In accordance with the authorizing statute, only the 50 U.S. states are eligible to receive an RHT Program award. The District of Columbia and U.S. Territories are not eligible.
How States Can Use Funds
States must apply RHT Program funds to at least three or more of the following approved categories:
Programs that improve prevention and chronic disease management with measurable outcomes.
Stroudwater solutions:
- Quality Infrastructure Evaluations: Comprehensive assessments of rural hospital quality programs to identify high-value opportunities, strengthen care coordination, align quality initiatives with value-based care, and build sustainable systems that improve outcomes and safety.
- Revenue Cycle Optimization: Training and program development for care management services (Chronic Care Management, Transitional Care Management, Alternative Payment Models, Remote Patient Monitoring) and goal management protocols, paired with revenue cycle assessments and KPI development to ensure these programs are implemented effectively, billed compliantly, and financially sustainable.
- Survey Readiness: Strategic support to help rural hospitals identify and resolve compliance vulnerabilities—strengthening QAPI, infection control, nursing services, and other high-risk areas—so organizations maintain accreditation, improve patient safety, and enter surveys with confidence.
Direct support for healthcare providers delivering care items or services, as defined by CMS.
Stroudwater solutions:
- Clerical & Clinical Operations: Assessments of front-end clerical functions (scheduling, registration, billing) and back-end clinical workflows to streamline operations, reduce denials, improve provider productivity, and strengthen financial performance—resulting in faster payment cycles, higher patient satisfaction, and stronger staff retention in Rural Health Clinics and hospital outpatient departments.
- Cost Report Reviews: In-depth assessments of Critical Access Hospital cost reports to ensure accuracy and compliance while identifying opportunities in areas such as overhead allocations, provider compensation reporting, and swing bed utilization—improving financial performance and maximizing reimbursement.
- Revenue Cycle Optimization: Comprehensive assessments, KPI development, and collaborative training to help rural hospitals strengthen revenue cycle performance, capture additional reimbursement, reduce denials, and ensure compliance—driving sustainable provider payments and financial stability.
- Strategic Financial & Operational Assessments: Comprehensive reviews of financial performance, revenue cycle processes, service line opportunities, cost report accuracy, and swing bed growth—helping Critical Access Hospitals and rural providers identify an average of $1.7M in improvements (≈8% of net patient revenue), strengthen compliance, and build sustainable provider payment models.
Tools that support prevention and chronic disease management through accessible, tech-enabled solutions.
Stroudwater solutions:
- Revenue Cycle Optimization: Training on care management services—including Chronic Care Management (CCM), Transitional Care Management (TCM), Alternative Payment Models (APM), and Remote Patient Monitoring (RPM)—to help rural hospitals implement patient-facing technologies while ensuring compliant billing and sustainable reimbursement.
Support for adoption of advanced technologies—including remote monitoring, robotics, AI, and other innovations—to improve rural care delivery.
Stroudwater solutions:
- Cost Report Training: Hands-on training and advisory support to help rural hospital leaders and finance teams understand, prepare, and optimize Medicare cost reports—building internal capacity, ensuring compliance, and identifying opportunities to improve reimbursement and financial sustainability.
- Revenue Cycle Optimization: Training on care management services—including Chronic Care Management (CCM), Transitional Care Management (TCM), Alternative Payment Models (APM), and Remote Patient Monitoring (RPM)—to help rural hospitals implement patient-facing technologies while ensuring compliant billing and sustainable reimbursement.
Initiatives to bring clinical professionals to rural areas with a minimum five-year service commitment.
Stroudwater solutions:
- Provider Compensation & Workforce Stability: Development of competitive, market-specific compensation models and talent pipeline programs that attract and retain providers in rural communities, supported by operational assessments that reduce burnout, improve efficiency, and create a more stable workforce.
- Medical Staff Development Planning: Comprehensive provider strategies that define specialty needs, align recruitment and retention efforts with organizational goals, and integrate compensation and succession planning into a five-year roadmap—helping rural hospitals address physician shortages, improve alignment, and build sustainable provider pipelines.
- Revenue Cycle Workforce Incentives: Support in designing incentive programs for revenue cycle staff to improve front-end collections of co-pays and deductibles, reducing reliance on outside agencies and strengthening in-house financial performance.
Investments in software, hardware, and cybersecurity enhancements to increase efficiency and improve outcomes.
Identifying and aligning rural healthcare delivery across preventative, ambulatory, emergency, inpatient, outpatient, and post-acute services.
Stroudwater solutions:
- Market Assessments: Regional and system-level evaluations to ensure rural communities have the right mix of preventive, ambulatory, emergency, inpatient, outpatient, and post-acute services—identifying risks of access loss when hospitals close, quantifying populations impacted, and supporting the development of rural health delivery networks that keep care local and sustainable.
- Strategic Financial & Operational Assessments: Comprehensive reviews of financial performance, revenue cycle processes, service line opportunities, cost report accuracy, and swing bed growth—helping Critical Access Hospitals and rural providers identify an average of $1.7M in improvements (≈8% of net patient revenue), strengthen compliance, and build sustainable provider payment models.
- Strategic Master Facility Planning: Data-driven planning to help rural and community hospitals right-size delivery systems and make better decisions about phased capital investments. While RHT Grants preclude major capital expenditures, they can support planning efforts—creating an opportunity to align facility needs with community demand, financial constraints, and long-term sustainability.
Expanding access to opioid use disorder treatment, other SUD care, and mental health services.
Stroudwater solutions:
- Behavioral Health in the ED: A 10-week, evidence-based improvement sprint that equips rural hospitals with tools, training, and expert guidance to strengthen ED workflows, embed trauma-informed care, improve outcomes, and enhance safety for patients and staff.
- Opioid Management: Evidence-based training and support for primary care clinics to improve chronic pain management, reduce reliance on long-term opioid therapy, standardize prescribing practices, and enhance patient safety.
Development of value-based care arrangements and alternative payment models tailored for rural settings.
Stroudwater solutions:
- ACO & Value-Based Care Modeling: Advisory support to evaluate and implement ACO participation, alternative payment models, and value-based care arrangements that drive better outcomes at lower cost.
- Behavioral Health in the ED: A 10-week, evidence-based improvement sprint that equips rural hospitals with tools, training, and expert guidance to strengthen ED workflows, embed trauma-informed care, improve outcomes, and enhance safety for patients and staff.
- Quality Infrastructure Evaluations: Comprehensive assessments of rural hospital quality programs to identify high-value opportunities, strengthen care coordination, align quality initiatives with value-based care, and build sustainable systems that improve outcomes and safety.
- Strategic Financial & Operational Assessments: Comprehensive reviews of financial performance, revenue cycle processes, service line opportunities, cost report accuracy, and swing bed growth—helping Critical Access Hospitals and rural providers identify an average of $1.7M in improvements (≈8% of net patient revenue), strengthen compliance, and build sustainable provider payment models.
- Swing Bed Optimization & Quality Reporting: Evidence-based programs that help rural hospitals strengthen swing bed operations, ensure regulatory compliance, benchmark outcomes, and expand post-acute care capacity—improving patient outcomes, keeping care local, and enhancing financial sustainability.
Additional strategies that ensure sustainable, high-quality rural care.
Stroudwater solutions:
- Strategic Designation Support: Guidance on facility designation strategies to position for future growth, including financial analysis, training on Conditions of Participation, and evaluation of the pros and cons of various options to ensure long-term sustainability.
- Strategic Financial & Operational Assessments: Comprehensive reviews of financial performance, revenue cycle processes, service line opportunities, cost report accuracy, and swing bed growth—helping Critical Access Hospitals and rural providers identify an average of $1.7M in improvements (≈8% of net patient revenue), strengthen compliance, and build sustainable provider payment models.
- Strategic Partnerships: Advisory support to help rural hospitals quantify their full value in partnership arrangements—optimizing areas such as cost-based payment, cost report opportunities, 340B eligibility, swing bed programs, and referrals—so partnership terms reflect the true contribution of rural providers and drive long-term sustainability.
- Strategic Planning: Guidance for RHCs and hospital outpatient departments on service line expansion (e.g., behavioral health, telehealth), operational optimization, and regulatory compliance—building resilient, community-centered practices that meet evolving healthcare needs and ensure long-term viability.
- Survey Readiness: Strategic support to help rural hospitals identify and resolve compliance vulnerabilities—strengthening QAPI, infection control, nursing services, and other high-risk areas—so organ
Application Timeline
Key Dates
September 15, 2025
Application instructions released on grants.gov.
Late September 2025
Introductory webinars hosted by CMS.
October 2025
States form applications; CMS available for Q&A.
November 5, 2025
Application submissions due.
By December 31, 2025
Awardee decisions announced.
2026 Onward
Monitoring and CMS support begins.
How Stroudwater Helps States Succeed
With 40 years of experience advising rural hospitals, clinics, and health systems, Stroudwater helps states design transformation programs that are both visionary and grounded in proven results.
We partner with state leaders to:
- Align strategies with CMS requirements while reflecting rural realities
- Operationalize transformation goals into measurable, actionable initiatives
- Build frameworks for long-term sustainability—across finance, clinical care, and innovation
Our Expertise Spans:
Financial Sustainability
New revenue streams, reimbursement optimization, LEAN and throughput improvement
Clinical Transformation
Reducing unnecessary transfer leakage, strengthening ED workflows, expanding post-acute options
Provider Solutions
Sustainable, compliant compensation models that retain workforce talent
Strategic Partnerships
Stronger alignment between rural hospitals and referral centers
Technology Integration
Dashboards, pricing strategies, KPIs, market share insights, and chronic disease analytics
Tools for Your State Office
Rural Health Insights for Each State & Congressional District
Understand the Landscape of Rural Health in the United States for Every State and Congressional District
The Rural Transformation Fund Team
Partner with Stroudwater
At Stroudwater, we believe rural healthcare has the power to transform communities. If you need help accessing the right data or applying insights to your state’s application, we’re here to support you.
Connect with Stroudwater to build a plan that is compliant, compelling, and transformational.

