South Dakota

South Dakota secured $189.4 million in federal funding for fiscal year 2026 through the Rural Health Transformation Program. The state has released multiple rounds of RFPs to support digital health modernization and coordinated care for rural, tribal, and frontier healthcare systems. Three consultant organizations have been selected for implementation and project management support. Key contacts: Melissa Magstadt DOH.info@state.sd.us; DOHmedia@state.sd.us Event schedule: - First Round RFP Release - February 25, 2026 - Second Round RFP Release - March 3, 2026 - First Awards Announcement - May 21, 2026

South Dakota was awarded approximately $189.4M in FY2026 under the Rural Health Transformation Program, with a comprehensive, state-led strategy targeting rural hospital stabilization, Medicaid payment transformation, digital health infrastructure, and rural workforce expansion. Core initiatives include health IT modernization, alternative payment models, EMS regionalization, expanded maternal and behavioral health services, and workforce recruitment and retention efforts. The program directly addresses rural health disparities across all 64 rural counties, including Tribal and frontier populations.

This data document summarizes South Dakota's multi-RFP RHTP funding slate for FY2026, including chronic disease, digital health, workforce, maternal health, management, and system transformation initiatives. Each program area has closed or upcoming RFPs, with substantial awards directed at hospitals, technology, community health, and payment reform. The state is actively issuing awards, closing applications, and planning for future cycles.

This application template supports rural health care providers seeking funding to modernize technology, equipment, and consulting in South Dakota. Applicants must specify service areas by county, follow national interoperability standards, and submit metrics for improving rural health delivery. Sustainability planning and regional innovation center proposals are included.

South Dakota will award $89.3M for digital health modernization with a focus on electronic health records, telehealth, diagnostic and network upgrades, cybersecurity, workforce training, and the creation of regional innovation centers. The program aims to advance patient care, data security, interoperability, and sustainable technology infrastructure for rural and underserved health providers. Subrecipient requirements mirror robust federal compliance, supporting local projects through a competitive, tiered grant framework. Event schedule: - Application Open - 05/07/2026 - Online grant portal - Application Close - 06/30/2026 - Online grant portal - Grant Period Start - 02/20/2026 - Grant Period End - 07/31/2027 - Award Announcement - August 2026

South Dakota has launched a comprehensive initiative to transform behavioral health care for rural and frontier populations with a nearly $190 million federal award. The project is focused on implementing the CCBHC and Collaborative Care models, expanding crisis care capacity, and integrating physical and behavioral health systems. Early-phase goals include certifying clinics, developing payment models, and establishing quality assurance and data systems.

South Dakota received over $189 million in FY2026 for the Rural Health Transformation Project, with a major focus on digital health modernization for rural and underserved healthcare providers. Approximately $89.4 million will be available for the first grant period in 2026, with competitive sub-grants planned for electronic health records, interoperability, digital equipment, security, workforce training, and regional innovation. No individual recipient awards have yet been made; sub-grant opportunities will be detailed in the forthcoming RFA.

South Dakota's PACT initiative establishes a new Medicaid primary care payment and quality incentive model, with $62.7M in grant funding for infrastructure, care management, and technology. The program aims to sustain rural primary care practices by shifting to value-based prospective payments, focusing on prevention, population health, and provider team support. Implementation runs from 2026-2030, beginning with planning and launching statewide in 2028.

This initiative funds statewide implementation of CCBHC and Collaborative Care Models in South Dakota to improve behavioral health care in rural and frontier areas. It includes workforce development, crisis and telehealth infrastructure, payment system transformation, and data infrastructure modernization.

This initiative aims to modernize rural health IT infrastructure in South Dakota through funding for EHR adoption, telehealth integration, and operational resilience. It includes launching innovation centers and a health data atlas to improve care coordination and public data access.

This initiative focuses on expanding evidence-based chronic disease management programs in rural South Dakota, including funding for rural healthcare providers and caregiver support. It aims to improve health outcomes through sustainable community-based interventions and enhanced care coordination.

South Dakota's EMS initiative targets the development of EMS Hubs to improve coverage and response times, expands workforce training, and integrates advanced technology including telemedicine. The program aims to enhance rural emergency response sustainability and coordination statewide.

The initiative will establish a statewide digital training platform and deliver virtual and in-person training to enhance rural healthcare workforce capabilities. It aims to improve care quality and provider retention through professional development.

The timeline outlines key quarterly activities and funding releases for the RHTP in 2026, emphasizing planning, program launch, and expanded funding for behavioral health, Medicaid support, and digital modernization.

This Q&A document clarifies the eligibility requirements, allowable costs, funding structure, and application mechanics for South Dakota's Rural Health Transformation Program RFA No. 26-09RHT-020. It provides key details on EHR replacement, enhancement categories, EMS priorities, and audit/reimbursement rules. The guidance addresses multi-year funding, maintenance/support limits, types of eligible facilities, and caps on personnel costs for applicants. Event schedule: - Project eligible cost start date - 02/20/2026 - Year 1 application/grant period end - 07/31/2027 - Final reports due after grant end - 07/31/2027 - 09/30/2027 - Expected release of Year 2 RFP - January 2027

This funding forecast summarizes the distribution of RHTP grant program funds across multiple RFPs and key rural health transformation initiatives for South Dakota in FY2026. Highlights include major investments in digital health modernization, rural workforce advancement, EMS development, and systems transformation for rural sustainability. Shared funding lines span chronic disease, behavioral health, and management infrastructure.