PHPA 3936 - Rooted and Resilient Rural Maryland: Transformation through Sustainable Access, Innovative Care, and Tech Innovation

The Maryland Department of Health, through its Prevention and Health Promotion Administration (PHPA), Behavioral Health Administration (BHA), and Health Services Cost Review Commission (HSCRC), is issuing a Request for Applications (RFA) to award funding under the Rural Health Transformation Program (RHTP). This competitive procurement seeks proposals addressing three transformation fund areas: Sustainable Access Through Service Expansion and Health Information Technology Advances, Behavioral Health Service Expansion, and Innovative Care. Projects must serve one or more of Maryland's 18 designated rural counties and demonstrate alignment with RHTP strategic goals including expanding primary care, specialty care, and behavioral health services; promoting efficient management of chronic somatic and behavioral health conditions; leveraging technology for direct healthcare delivery; and enabling providers to adopt innovative, value-based care models. Eligible applicants must be either Transformation Collaboratives (multi-partner groups of three or more organizations with shared governance, which are preferred) or Sole Organizations, and must be Social Organizations (non-profit/501(c)(3) tax-exempt entities), Government entities, or Academic entities with proof of IRS tax-exempt status, good standing with the Maryland State Department of Assessments and Taxation, and tax compliance certification from the Maryland Comptroller's Office. Key requirements include designating a Program Director and separate Fiscal Director as core staff positions, ensuring all healthcare providers and clinical staff are licensed to practice in Maryland, capping administrative and indirect costs at 8.5 percent of total project budget, limiting direct provider payments to 15 percent maximum, restricting minor renovations to 20 percent of Maryland's total RHTP allocation, and capping EMR replacement at 5 percent. A pre-application conference is scheduled for April 28, 2026, with written questions due by May 12, 2026, at 2:00 p.m. EST, and completed applications must be submitted through eMaryland Marketplace Advantage (eMMA) or to RFA.PHPA@maryland.gov no later than May 26, 2026, at 2:00 p.m. EST. All HIPAA covered entities receiving RHTP funds must complete basic on-boarding requirements with the Chesapeake Regional Information Systems for our Patients (CRISP) statewide Health Information Exchange by March 30, 2027.

This RFA does not contain set-aside designations for disadvantaged enterprises or minority-owned businesses; however, preference is given to Transformation Collaboratives over Sole Organizations as applicant types. There are no identified incumbent vendors or current contractors listed, though applicants must demonstrate integration capability with CRISP, Maryland's statewide Health Information Exchange infrastructure, which is mandatory for connectivity by March 30, 2027. The total funding available for Budget Period 1 (August 15, 2026 through June 30, 2027) is $73 million in 100 percent federal funding from the Centers for Medicare & Medicaid Services (CMS), awarded as Cost Reimbursement Contracts through Standard Grant Agreements. The State intends to make multiple awards to achieve a balanced cohort of awardees across regions with complementary initiatives, and while the RFA anticipates continued funding for Budget Periods 2 through 5 (October 31, 2026 through September 30, 2031, contingent upon CMS approval), no guarantee of future funding is provided. Applicants are encouraged to develop proposals as the first step in a multi-year initiative and must demonstrate sustainability and scalability, showing how projects will achieve long-term improvements beyond the funding period with progression plans for subsequent budget periods. Applications must comply with all federal RHTP terms and conditions, CMS regulations, and requirements for non-duplication and non-supplanting of existing funds.