Rural Health Transformation Program - Transform, Innovate, and Regionalize Care

Vermont has received a Rural Health Transformation (RHT) grant of $195 million in Year One of a five-year opportunity. The purpose of the grant is to build stronger rural health networks, improve technology and shared operations, strengthen the rural health workforce and ultimately ensure that Vermonters receive the right care at the right time for an affordable cost. The purpose of this Notice of Funding Opportunity (NOFO) is to provide funds to help health care providers implement regional care strategies that coordinate services across a geographic area to improve access, quality, efficiency, and sustainability. This may include shifting appropriate services from hospital to community-based or outpatient settings, strengthening specialized regional services, or redesigning how care is delivered across a region. AHS will fund both hospital and non-hospital providers. In alignment with Act 68 of 2025, all proposals should strengthen the continuum of care, encourage care delivery innovation, and better align services with population needs. Eligible strategies include but are not limited to hospital-home health partnerships, regional workforce sharing models, maternity care network development, and hospital designation or service transformation. Designation or service transformation refers to a hospital transitioning from a traditional inpatient model to one that emphasizes emergency, outpatient, primary, or other essential community-based services, preserving local access to critical care while building a sustainable, right-sized role within Vermont's broader health care system. Funding may support the operational, staffing, and service delivery changes necessary to implement such a transition.