minnesota department of health

State health officials submit federal Rural Health Transformation Program application

Minnesota seeks $1 billion over five years

In its capacity as Governor Tim Walz's designee, the Minnesota Department of Health (MDH) today announced that it has submitted a comprehensive application to the Centers for Medicare & Medicaid Services (CMS) for participation in the Rural Health Transformation Program (RHTP).

The application was developed in collaboration with rural hospitals and health systems, safety net clinics, emergency medical services, local public health agencies and community stakeholders. It outlines a bold five-year plan to stabilize and strengthen rural health care delivery across the state of Minnesota and make strategic use of new technology tools to ensure rural residents can access care closer to home.

“Access to high-quality health care should be available to everyone no matter where they live,” said Minnesota Commissioner of Health Dr. Brooke Cunningham. “This application represents months of hard work and engagement with partners and stakeholders from across the state to reflect the real needs of Greater Minnesota. We are proud to submit a plan to improve health outcomes for rural Minnesotans by expanding access to care, strengthening partnerships and stabilizing rural providers’ ability to deliver care.”

Minnesota’s RHTP application is built on a strong foundation of stakeholder and partner engagement. In all, MDH held more than 40 meetings with stakeholders from across Minnesota and received nearly 350 responses to its request for stakeholder input. The application was accompanied by a number of letters of support, including bipartisan support from state and federal lawmakers, the Minnesota Hospital Association, the Association of Minnesota Counties, Minnesota Medical Association, Minnesota Association of Community Health Centers, Minnesota Office of Emergency Medical Services and several rural health systems.

The goals at the center of Minnesota’s application are focused in five key areas and closely align with the strategic priorities outlined by CMS:

  • Improve health outcomes for rural Minnesotans with or at risk of developing cardiovascular disease, diabetes and chronic kidney disease (cardiometabolic disease).
  • Build education pathways and promote training opportunities in rural communities to sustainably expand the health care workforce in rural Minnesota.
  • Expand health care access in rural communities by creating new entry points for community-based screenings, preventive care and chronic disease management through technology-enabled care delivery, mobile care and increased use of community-based frontline workers.
  • Strengthen partnerships between providers to enable delivery of expanded services in rural areas through shared learning, collaborative approaches and advanced technology interventions.
  • Strengthen and stabilize rural provider financial health through strategic investments in technology, data infrastructure and collaborative mechanisms to address unique needs of rural providers.

“Minnesota’s nonprofit hospitals and health systems are operating under historic stress — financially, operationally and in workforce capacity," said Dr. Rahul Koranne, president and CEO of the Minnesota Hospital Association. "We are deeply grateful for the partnership and engagement of state leaders in developing their plan, and for the bipartisan group of state and federal leaders now working in concert to see it approved. It’s a meaningful step toward stabilizing access and strengthening care in our rural communities, but there is still much work ahead. We look forward to continuing to work with leaders at every level to ensure every Minnesotan can count on high-quality, sustainable care close to home.”

The RHTP was created by H.R.1 (Public Law 119-21) on July 4, 2025, to address rural community health care delivery challenges. The program will provide up to $50 billion in funding over five fiscal years to states. CMS is expected to announce approved state applications and awards by Dec. 31. State officials will continue engaging stakeholders as implementation planning advances.

For more details and insights on specific strategic initiatives, a fact sheet describing Minnesota’s RHTP application is available on MDH’s Rural Health Transformation Program website. Additional application details will be added to the website in the coming days.

-MDH-

Media inquiries:
Garry Bowman  
MDH Communications
651-529-5164
[email protected] 

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