Building a Sustainable Rural Healthcare Workforce: Recruit & Retention

Closed State & local contract opportunity Posted

Solicitation number
26RFP-26-09RHT-024
State
South Dakota
Responses due

Opportunity facts

Opportunity details come from postingboard.esmsolutions.com. Updated .

About this opportunity

The South Dakota Department of Health, Division of Healthcare Access, Office of Rural Health is requesting proposals to implement workforce recruitment, retention, and deployment strategies for rural and frontier healthcare systems, with proposals due September 4, 2026 at 5:00 p.m. Central Time under RFP #26-09RHT-024. Up to $6 million in total funding is available for awards in the first year, with multiple awards anticipated; the State expects to fund and partner with multiple entities rather than a single awardee.

Eligible applicants are healthcare organizations, facilities, and other entities that serve rural and underserved South Dakota communities. The Rural Health Transformation initiative is 100 percent funded by the Centers for Medicare & Medicaid Services and aims to address critical provider shortages, high turnover, and geographic maldistribution of licensed professionals in rural areas.

Proposals must address workforce recruitment with targeted incentives and streamlined placement; retention and stability support tied to a minimum five-year service commitment per CMS federal guidance; workforce deployment aligned with community health needs; regional partnerships and collaboration; program management and data collection for impact measurement; sustainability plans extending beyond the funding period; and stakeholder engagement. The scope includes personnel costs (salary and fringe), travel and training reimbursed at state per diem rates, and other allowable costs (supplies, contractual and operating expenses, and administrative fees). Pre-award costs, matching requirements for other state or federal funds, contracted or locum tenens provider incentives, and activities designed to influence legislation are unallowable.

Applicants must disclose any other Rural Health Transformation funding applied for with South Dakota or other states. Proposals are limited to 50 pages in Microsoft Word or PDF format submitted electronically. The contract period runs October 1, 2026 through July 31, 2027, with options to renew for three additional one-year increments, though renewal is not automatic. Questions are due August 4, 2026; responses to questions are provided by August 14, 2026. The anticipated award decision and contract negotiation occurs by September 30, 2026.

Opportunity text

The Rural Health Transformation initiative is a statewide effort focused on strengthening rural healthcare systems and improving access to quality care across South Dakota. Through strategic investments, innovative care models, and cross-agency collaboration, Rural Health Transformation is designed to build a more resilient, connected, and sustainable rural health system for communities across the state.
The purpose of this RFP is to solicit proposals from qualified healthcare organizations, facilities, and other eligible entities to participate in and support strategies to recruit, deploy, and retain a sustainable rural healthcare workforce across rural and underserved and frontier communities in South Dakota. Through this RFP, the State intends to fund and partner with multiple entities to implement coordinated, outcomes-driven workforce solutions that address critical staffing needs, improve workforce stability, and expand access to care in rural areas.
Rural healthcare systems across the state face persistent and compounding workforce challenges, including provider shortages, high turnover rates, maldistribution of licensed professionals, and increasing reliance on temporary or contract staffing. These challenges limit access to care, strain existing providers, and threaten the long-term viability of rural healthcare delivery systems.
This initiative is intended to directly address these challenges by establishing a coordinated, scalable, and outcomes-driven workforce model that: 􀁸 Accelerates recruitment of qualified healthcare professionals into rural and frontier communities through targeted incentives and streamlined placement strategies 􀁸 Improves retention and workforce stability by supporting providers throughout their service commitment, reducing turnover, and strengthening long-term rural practice viability 􀁸 Optimizes workforce distribution by aligning staffing resources with areas of highest need, ensuring equitable access to care across geographies 􀁸 Reduces reliance on temporary staffing models (e.g., locum tenens) by building a more stable, permanent workforce base 􀁸 Enhances provider experience in rural settings through structured support, engagement, and administrative simplification 􀁸 Establishes a sustainable workforce infrastructure that can be maintained beyond the initial funding period
Proposals should align with the broader goals of the Rural Health Transformation Project to develop the rural workforce, improve access to care, and create sustainable healthcare systems across the state which can be found online at ruralhealthtransformation.sd.gov and consideration of the Strategic Analysis of South Dakota's Rural Healthcare Programs, 2024, including the Data Analysis Summary, Infographic Summary, and Final Recommendations Report which can be found at https://doh.sd.gov/healthcare-professionals/rural-health/
Offerors may email inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date indicated in the Schedule of Activities. Inquiries must be emailed to Josie Petersen at Josie.Petersen@state.sd.us with subject line RFP #26-09RHT-024.
All inquiries and the State's response will be posted on the state's e-procurement system. Offerors may not rely on any other statements, either of a written or oral nature, that alter any specification or other term or condition of this RFP. Offerors will be notified in the same manner as indicated above regarding any modifications to this RFP.

Files

File Type Posted
Response to Offeror Questions document.pdf PDF
RFP Document.pdf PDF

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