Key Insights for Healthcare-Adjacent Companies at the State Level
by Jennifer Horn, MPA
đ§ jhorn@jtsfs.com đ jtsfs.com đ 501.446.9418
Excitement is high with RHTP funding having reached the states, but I’ve observed a recurring misunderstanding among healthcare-adjacent companies (tech innovators, consultants, service providers, etc.): Many assume they can apply directly for funding or that their standalone proposals will compete on equal footing with those from established rural providers like Rural Health Clinics (RHCs), Critical Access Hospitals (CAHs), Federally Qualified Health Centers (FQHCs), and urgent care centers.
Let’s clarify the current landscape, realistic odds, and why strategic partnerships with frontline providers remain the most effective route to meaningful involvement:
The State-Level Reality: How Funding Flows Now
States received their FY 2026 awards (averaging ~$200 million, ranging from $147 million in smaller states to $281 million in Texas) and are transitioning from planning to execution. Many states have established dedicated offices, advisory councils, or task forces to oversee the program. Implementation timelines are tightâstates often have limited windows (e.g., 10 months to obligate Year 1 funds in some cases) to avoid clawbacks.
Key priorities across states include:
- Expanding access through telehealth, mobile units, and integrated care networks.
- Workforce development, recruitment, and retention (e.g., “grow-your-own” programs, relocation incentives).
- Technology modernization, including AI, remote monitoring, and health information exchange.
- Prevention and chronic disease management (e.g., “Food Is Medicine” or “Make Rural America Healthy Again” initiatives).
- Stabilizing facilities and fostering regional collaborations.
States are rolling out subawards, grants, or requests for applications (RFAs) to eligible entities. For instance:
- New Jersey released an RFA focused on advancing technology, prevention, and workforce capacity, targeting healthcare providers, community-based organizations, and tribal entities.
- Texas emphasizes awards to rural hospital districts, clinically integrated networks (CINs), and providers in rural counties, with initiatives like AI-driven telehealth networks and patient empowerment tools.
- Arkansas prioritizes stabilizing vulnerable hospitals and community health efforts through its “HEART” initiative.
- Other states (e.g., Alaska, Colorado, Georgia, Virginia, West Virginia) are hiring staff, forming advisory councils, or launching partnerships with local providers.
Direct eligibility for healthcare-adjacent companies is extremely limited or nonexistent. Funding targets rural healthcare providers and entities directly serving rural populationsâRHCs, CAHs, FQHCs, urgent cares, behavioral health providers, EMS, and similar frontline organizations. Standalone proposals from tech or consulting firms rarely qualify independently, as states prioritize initiatives that demonstrably impact rural residents and align with approved transformation plans.
The Odds: Why Standalone Proposals Face Steep Challenges
Competition for subawards is intensifying as states deploy funds quickly and strategically. Core rural providers hold a clear advantage because:
- They are embedded in the communities the program targets, with proven service delivery.
- State plans emphasize direct improvements in access, outcomes, and facility stabilityâareas where RHCs, CAHs, FQHCs, and urgent cares excel.
- Proposals must tie to state-specific goals (e.g., workforce in one state, tech hubs in another), and adjacent companies often lack the direct rural service footprint needed for strong alignment.
A standalone submission from a non-provider entity is unlikely to advance far in competitive processes, which often involve scoring, oral presentations, or panel reviews (as seen in Texas). The program’s intentâto offset rural challenges like hospital closures and workforce shortagesâfavors established providers over ancillary players.
Partnerships: The Proven Path to Success
The smartest strategy for healthcare-adjacent companies is strategic collaboration with eligible rural providers. States actively encourage partnerships to drive innovation, scale solutions, and achieve economies. Examples from state plans include:
- Forming regional networks or hub-and-spoke models where tech solutions integrate with provider workflows.
- Co-developing telehealth, AI, or remote monitoring programs with CAHs or FQHCs.
- Supporting workforce initiatives through training platforms or tools delivered via provider partners.
By partnering, you:
- Gain direct relevance to state priorities and eligibility criteria.
- Strengthen proposal competitivenessâstates favor coalitions that combine provider expertise with innovative capabilities.
- Build sustainable impact, positioning your offerings for long-term adoption beyond initial funding.
Many states are already soliciting input from broad stakeholders, including through advisory councils or RFAs that welcome collaborative applications.
Moving Forward
The RHTP’s state-level phase is underway, offering real opportunitiesâbut success depends on understanding the provider-centric focus. For healthcare-adjacent companies, the message is clear: partnering with RHCs, CAHs, FQHCs, urgent cares, or similar entities is the most reliable way to navigate eligibility hurdles, boost proposal strength, and contribute to rural transformation.
If you’re evaluating RHTP opportunities in your state (or states like Arkansas, Texas, or others), reach out to rural providers and review public state resourcesâit’s the key to getting to the finish line. Ready for some help from the experts? Look to JTS.