HHS Region 9 · State Health Planning and Development Agency
Program Overview
The Hawaii Rural Health Transformation Program (RHTP) is currently in active planning and early implementation, following a recent annual award supporting major initiatives to strengthen rural health systems. The program focuses on advancing value-based payment reform, aligning with the AHEAD model through IT upgrades, hospital and provider supports, and quality-focused initiatives managed by SHPDA, DOH, and Med-QUEST. Hospital-specific analysis and system alignments are underway, with significant payment transformation scheduled to begin in 2028.
Updated
County-level estimates averaged across Hawaii — % of adults 18+ unless noted. Delta vs US county average shown in red/green.
pp = percentage points vs US county average
County Drilldown (5)
| County | Pop | Poverty | Uninsured |
|---|---|---|---|
| Honolulu County | 1,001,146 | 9.2% | 6.1% |
| Hawaii County | 205,769 | 14.9% | 10.3% |
| Maui County | 164,522 | 9.2% | 6.3% |
| Kauai County | 73,731 | 9.1% | 7.1% |
| Kalawao County | 67 | 22.7% | 0.0% |
273,927 rural residents
AI source: HI - 2026 - Hawaii Office Of The Governor — News Release — Hawai‘i Awarded $188.9 Million To Transform Rural Healthcare | Governor Josh Green, M.D. Skip To Content Skip To Navigation Skip
AI auto-updated May 8, 2026
API refreshed May 7, 2026
Centers for Medicare & Medicaid Services (CMS)
Grouped files
7 related documents
HI - 2026 - CMS RHTP 50-State Spotlight (FY2026) — Hawaii
Hawaii has received RHTP funds and is actively engaged in statewide planning and program design. Data analysis, modeling, and stakeholder engagement are ongoing, with procurements and hospital-level engagement activities scheduled. The state is awaiting further guidance from CMS before major implementation steps, and specific approved activities under RHTP are still pending confirmation. No subgrants have been awarded to local providers yet. State opportunities: no active opportunities, $189.0M listed funding.
Hawaii’s RHTP strategy is fully integrated with the statewide AHEAD initiative, focusing on transforming rural healthcare by transitioning to value-based payment models, modernizing rural IT/data systems, and supporting provider readiness for global budgets and advanced primary care. The approach uses substantial federal RHTP funding to strengthen infrastructure and networks, while aligning incentives through global hospital budgets, tiered primary care Alternative Payment Models (APMs), and comprehensive quality/pay-for-performance programs. Implementation is staged, with major payment transformation beginning in 2028 across Medicaid, Medicare, and commercial payers.
Model
Integrated value-based care transformation through Hospital Global Budgets, Primary Care APMs, and rural provider infrastructure investment (AHEAD-aligned, payer-agnostic).
Key Initiatives
Timeline: 2024–2027: Stakeholder engagement, regulatory/contract prep, initial infrastructure upgrades, and provider recruitment. 2028: Implementation of global budgets and AHEAD-aligned advanced payment models for Medicaid and Medicare; commercial payer alignment begins. Major performance period: 2028–2035.
Healthcare access and quality in rural areas: Challenges include long travel distances, limited specialty care, workforce shortages, and aging infrastructure affecting rural and neighbor island residents. (Regions: Neighbor Islands, Rural Oʻahu)
This document outlines the design priorities and standards for the Hawai`i AHEAD Medicaid Advanced Primary Care Payment Model (APM) framework. It reviews requirements for medical home models, care coordination, health promotion, behavioral health integration, specialty care, and payment approaches for the Medicaid population. The framework emphasizes alignment with hospital global budgets, operational simplicity, and improving population health through primary care transformation. Event schedule: - Framework Discussion Meeting - 03/25/2026 - HT
Hawai‘i was awarded RHTP funding to support the AHEAD model for rural healthcare transformation. The budget for 2026 is approximately $12 million, fully funded by CMS/HHS. The program focuses on enabling rural providers to succeed under value-based payment models with support for innovations such as quality reporting and practice transformation coaching.
HI - 2026 - Hawaii OMB Number: 4040-0004 Expiration Date: 11/30/2025 RHTP Application
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HI - 2024 - 2026-02-03 Steering Committee Meeting Presentation
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HI - 2026 - 2026-03-03 Steering Committee Agenda
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HI - 2025 - 2026-03-03 Steering Committee Presentation (Med-QUEST Global Budgets)
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HI - 2026 - 2026-04-07 Steering Committee Meeting Agenda
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HI - 2026 - 2026-04-07 Steering Committee Presentation (HGB and RHTP)
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Hawai‘i was awarded RHTP funding to support the AHEAD model for rural healthcare transformation. The budget for 2026 is approximately $12 million, fully funded by CMS/HHS. The program focuses on enabling rural providers to succeed under value-based payment models with support for innovations such as quality reporting and practice transformation coaching.
Core Initiatives
Hawai‘i received $189 million per year over five years from CMS/HHS to support rural health transformation through multiple targeted initiatives. The state is in the pre-implementation and planning phase, coordinating closely with various partners to enable rural providers' success in value-based care models.
Hawai‘i's AHEAD initiative is a comprehensive state strategy to align payment reform for primary care across Medicare, Medicaid, and commercial payers, leveraging upfront investment and global budgets. The model includes enhanced payments for rural health providers, performance-based quality measures, and technical assistance for practices. Implementation is staged, with Medicaid primary care reform required by 2027 to avoid federal award termination.
Core Initiatives
This guidance document provides detailed financial and operational specifications for the AHEAD Model Hospital Global Budget. The AHEAD Model is a voluntary, state-based alternative payment model focusing on global hospital budgets, population health, and cost growth control. Rural hospitals, including CAHs and REHs, are key participants and receive payment methodology adjustments.
Core Initiatives
Hawaii received a $12M federal award to implement AHEAD program initiatives through 2029. State-level requirements include new Medicaid policies, expanded telehealth, and workforce reforms. Cooperative agreement performance milestones are defined for policy selection, enactment, and implementation.
The Steering Committee will guide planning and implementation of Hawaii's statewide AHEAD and hospital/primary care payment transformation, starting in 2025. Strategic priorities include developing health equity and quality targets, Medicaid/global hospital budgets, and advancing population health and cost management. Committee members represent a diverse cross-section of stakeholders and will meet monthly to plan and provide input.
This document outlines the design priorities and standards for the Hawai`i AHEAD Medicaid Advanced Primary Care Payment Model (APM) framework. It reviews requirements for medical home models, care coordination, health promotion, behavioral health integration, specialty care, and payment approaches for the Medicaid population. The framework emphasizes alignment with hospital global budgets, operational simplicity, and improving population health through primary care transformation. Event schedule: - Framework Discussion Meeting - 03/25/2026 - HT
Core Initiatives
This document summarizes changes from version 2.0 to 3.0 of the AHEAD Medicare Hospital Global Budget payment methodology for Hawaii. It discusses revisions to baseline calculations, hospital payments, social risk adjustment, and incentives. The summary primarily illustrates anticipated impacts for rural and critical access hospitals under the new 2025 CMS methodology.
Core Initiatives
This report provides an actuarial overview of Hawaii's proposed participation in the AHEAD Hospital Global Budget Model, summarizing trends in Medicare/Medicaid revenue, operational margins, and hospital quality measures. It analyzes required participation scenarios to meet AHEAD's benchmarks, including both CAH and non-CAH facilities. Hawaii’s hospitals show good quality and increasing Medicaid revenue, but CAHs and some systems demonstrate concerning margin trends.
This CMS summary reviews FY26 RHTP state applications, outlines state-level proposed funding and core initiatives. States prioritize digital health, rural workforce, chronic and maternal care transformation, and value-based care. Common strategies include telehealth, mobile clinics, regional hubs, and cross-sectoral partnerships to address access and outcomes.
This strategy document outlines a Medicaid Primary Care Advanced Payment Model (APM) intended to strengthen primary care, improve quality, and align payment with outcomes for rural and underserved populations in Hawaii. It includes analysis of current Medicaid utilization, payment attribution models, tiered participation requirements, and behavioral health integration. No explicit award or fiscal amounts are detailed.
Core Initiatives
The Hawai‘i AHEAD Primary Care Working Group is advancing stakeholder engagement and developing methodologies for improving primary care quality and cost management. The project has a strong timeline through 2027 with landmark submissions and contract executions to support implementation and recruitment.
Hawaii's Med-QUEST Division plans a transition to mandatory Medicaid Hospital Global Budgets, aligning incentives between hospitals and primary care through Pay-for-Performance and global budget payments. The total estimated statewide payments for 2025 are $1.1B, with $100M allocated for quality improvement P4P. Historical modeling shows most hospitals benefit from the new approach, especially during high trend years.
Hawai‘i AHEAD continues active engagement with stakeholders to develop the Hospital Global Budget and primary care methodologies. The program is supported by a $12 million CMS award and includes milestones through 2025 leading to a performance year starting in 2027. Collaborative efforts involve key partners such as Healthcare Association of Hawai‘i and the Hawai‘i Primary Care Association.
Core Initiatives
Kula Hospital is proposing an expansion to achieve CAH status by adding emergency services and reconfiguring beds. The project is locally debt-financed with no explicit federal subaward cited, but is designed to qualify for future cost-based Medicare (and potentially Medicaid) reimbursement. This will improve financial viability and enable better urgent care access for the rural Maui community.
The page currently has limited information on the RHTP program but provides contact details for the agency managing rural health efforts. No detailed program or strategy information is yet posted, with updates expected soon.
Contacts
This document outlines Hawai‘i’s approach to Medicaid Hospital Global Budgets as part of AHEAD transformation planning. Key strategies include shifting funding from utilization-based to value-based payments, considering prospective, virtual, and hybrid global budget methodologies, and aligning Medicaid reforms with Medicare AHEAD policies and multi-payer quality measures. No specific awardees or executed contracts are announced; funding projections are presented at an aggregate/statewide level.
Core Initiatives
Agenda for the Hawai’i AHEAD Steering Committee meeting, including a presentation on the Rural Health Transformation Program and general updates. No specific funding or award details provided.
Hawai‘i has received a $12 million award from CMS to support the AHEAD model for rural health transformation, including hospital global budgets and advance primary care programs commencing in 2028-2029. The program focuses on improving rural health payment models and care delivery innovation.
The program addresses healthcare disparities for the 40.8% of Hawaiʻi’s population living in rural areas by investing in a statewide digital health network, telehealth, emergency services, workforce development, medical respite centers, and value-based care innovation. The award is notable for being among the highest per capita and per rural resident due to the program’s quality despite lower data-driven metrics.
Core Initiatives
HI - 2025 - RHTP (updates coming soon) | Hawaii State Department of Health
HI - 2026 - 2026-04-29 Primary Care Working Group Presentation (Milliman)
HI - 2025 - 2026-03-19 Hospital Global Budget WG Presentation (Med-Quest)
HI - 2026 - 2026-02-18 Primary Care WG Meeting Milliman Slides
HI - 2026 - 2026-02-18 Primary Care WG Meeting
Documents predating or adjacent to the RHTP program — useful background, excluded from main activity feed.
HI - 2021 - Healthcare Utilization Reports and Survey Instructions | Hawaii State Department of Health
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HI - 2026 - Certificate-of-Need Applications and Decisions | Hawaii State Department of Health
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Hawai‘i was awarded $189M per year for the Rural Health Transformation Program (RHTP), supporting six major initiatives to strengthen rural health systems, align with AHEAD, and enable value-based payment reform. The program funds IT upgrades, quality initiatives, and rural provider supports managed by SHPDA, DOH, and Med-QUEST. Planning and hospital-specific analysis are underway, with implementation aligning to AHEAD and major payment transformation beginning in 2028.
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Application Fee Calculation Page
Hawaii STATE HEALTH PLANNING AND DEVELOPMENT AGENCY RHTP 2002 Document
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Hawaii LINDA LINGLE GOVERNOR OF HAWAII RHTP 2004 Document
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Hawaii STATE HEALTH PLANNING AND DEVELOPMENT AGENCY RHTP 2010 Document
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Hawaii STATE HEALTH PLANNING AND DEVELOPMENT AGENCY RHTP 2012 Document
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Hawaii STATE HEALTH PLANNING AND DEVELOPMENT AGENCY RHTP 2012 Document
Hawaii STATE HEALTH PLANNING AND DEVELOPMENT AGENCY RHTP 2012 Document
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