Digital Health Modernization and Technology Grant Program

The State of South Dakota Department of Health, through South Dakota Health Link, is issuing a Request for Applications (RFA) for the Digital Health Modernization and Technology Grant Program, a grant opportunity designed to support healthcare entities and providers serving underserved and rural communities in modernizing their digital health technology and equipment. The program seeks to enhance patient safety, improve interoperability, increase operational efficiency, and improve patient outcomes through strategic investments in healthcare technology infrastructure. Eligible applicants must be physically located in South Dakota and include Federally Qualified Health Centers, Critical Access Hospitals, rural hospitals, tribally operated clinics, community-based mental health centers, ambulatory and specialty clinics, long-term care facilities, home health and hospice agencies, and other South Dakota healthcare service providers. Projects must align with one of seven funding tiers: Electronic Health Record (EHR) Adoption, EHR Upgrade or Enhancement, EHR Replacement, Technology and Equipment, Digital Security, Workforce Technology Training, and Regional Innovation Centers. Evaluation criteria emphasize demonstrated need (30%), interoperability and data integrity (25%), feasibility and project plan (15%), and sustainability plan (30%). The application deadline is June 30, 2026, at 5:00 PM Central Time, with an anticipated award decision date of August 13, 2026. Technical assistance webinars are scheduled for May 14, 2026, at 10:00 AM CT and June 11, 2026, at 3:00 PM CT to provide applicants with program details and answer questions.

Applications must be submitted through an online portal at https://sdhealthlink.org/dhmtg_application/ and must include a project narrative (maximum 20 pages), budget documentation, needs assessment, implementation plan, sustainability plan, service area description, letters of commitment, signed W9 forms, and IRS determination letters for 501(c)(3) organizations. This funding opportunity has no specific set-asides for disadvantaged enterprises, though the program explicitly prioritizes underserved and rural healthcare communities. The contract term extends up to 19 months for grant period one, with all contracts required to be completed and invoiced by September 30, 2027. Cycle one funding totals $89,343,733.00 in available federal funding from federal fiscal year 2026. All subrecipients must comply with 2 CFR Part 200 requirements, maintain separate general ledger accounts, implement cost accounting procedures, follow federal procurement standards, and retain documentation for three years from closeout.