Make Rural Indiana Healthy Again Regional Grants

The Make Rural Indiana Healthy Again initiative brings the federal RHTP program to the state level. Indiana understands that rural communities know their own needs best and are well-positioned to create effective local solutions. The state has a strong track record of helping communities use data to identify their biggest opportunities and leverage local resources and partnerships to address them.
Program Overview
RHTP GROW Statewide Presentation
RHTP GROW Regional Presentation
Indiana will offer competitive regional grants focused on improving rural health. These grants will support:
- Innovative health solutions
- Collaboration to reduce costs across organizations
- New access points for preventive care
- Chronic disease prevention and management
- Workforce training and readiness
- Technological advancements in healthcare
To qualify for funding, participating organizations must fully engage with the expectations outlined in Indiana’s broader GROW initiatives.
Regional Committees
Regional Committees will consist of stakeholders within the individual region and have 11 regional members, approved by the State Executive Oversight body. They will represent key rural health stakeholders, utilizing subject matter expertise to assess potential beneficiaries of the regional grants, thus ensuring an equitable distribution of funds and accountability. The Regional Committee must meet at least quarterly to provide oversight, strive for collaboration, drive accountability, and review the budget. Each Committee must include:
- 1 Member of the Indiana General Assembly
- 1 Provider Representative
- 1 Non-Provider Medical Workers Representative
- 1 Patient Representative
- 1 Pharmacy Representative
- 2 Regional Business Community Representatives
- 2 Community-based Organizations Representatives
- 1 Local Health Department Representative
- 1 Medicaid Managed Care Representative
- 1 Rural Hospital
Regional Application Development and Timeline
The Indiana Health and Family Services (HFS) is creating the Make Rural Indiana Healthy Again Regional Grant Application to align with federal RHTP guidelines. This application will provide clear, step-by-step guidance for applicants on how to identify and address the unique health needs of rural communities.
The goal is to advance rural health across Indiana in line with CMS’ strategic priorities —focusing on data-driven solutions, strong partnerships, innovation, and long-term sustainability.
To ensure a smooth and transparent process, HFS will partner with an experienced grant-making vendor to assist with:
- Developing the application
- Designing evaluation criteria (with final award decisions made by the state)
- Creating grant agreements
- Setting clear expectations for outcomes and financial reporting
| Indiana Regional Grant Application Timeline | |
|---|---|
| Date | Milestone |
| March 2026 | Request for Applications released to public |
| March -- July 2026 | Technical assistance available for coalition formation and application development |
| July 1, 2026 | Applications due to State |
| July -- September 2026 | Application review, scoring, and award determinations |
| October 1, 2026 | Grant agreement period begins, and funding distributed to individual entities |

Regional Grant funding timeline is different than overall state funding timeline.
Pre-Application Expectations
The Regional Coalitions are encouraged to begin identifying partners, convening discussions about shared regional rural priorities, conducting joint needs assessments, and exploring data sharing agreements. Regional Coalitions demonstrating preliminary planning and established governance will be better positioned to rapidly deploy funding upon contract award.
Transforming Rural Health Through Regional Collaboration
Indiana is planning to invest $600 million over five years based on CMS RHTP award each year, to transform rural healthcare through a Regional Coalition Grant Model — a strategy designed to achieve what state-led efforts cannot. This model brings together hospitals, federally qualified health centers (FQHCs), mental health providers, community-based organizations, local health departments, schools, the business community, and other key partners to strengthen healthcare delivery across rural Indiana.
Unified Regional Applications
Each region will submit a single, unified application that demonstrates a shared plan for improving health outcomes. Applications must use community needs assessments and local health data from the Indiana Department of Health (IDOH) to identify service gaps, reduce duplication, find opportunities for shared cost savings, and propose innovative ways to deliver care.
By requiring one coordinated application per region, the program ensures that these partnerships extend beyond the grant period, forming the foundation for long-term regional health planning. Funding will be distributed directly to the organizations carrying out the initiatives. This approach recognizes that rural providers understand their communities best and that collaboration leads to lower costs, fewer service gaps, and better patient outcomes.
Regional Grant Oversight and Governance
The state will maintain strong oversight while giving rural communities the flexibility they need to innovate. The Indiana Health and Family Services (HFS) will ensure that all sub-grantees comply with Notice of Funding Opportunity (NOFO) and Centers for Medicare & Medicaid Services (CMS) guidelines, state grant rules, and reporting requirements. Public dashboards and key performance tracking will make data transparent and hold each region accountable for results.
Oversight will be led by two main committees. The Executive Oversight Committee, made up of leaders from Health and Family Services and the Governor’s Office, will have final authority over application approvals, funding decisions, and performance monitoring. It will oversee the grant throughout its duration and adjust funding annually based on compliance and outcomes.
The Regional Grant Steering Committee, chaired by the Executive Oversight Committee and approved by the Governor’s Office, will include community and legislative leaders, many of whom serve on the RHTP working group. Meeting quarterly, this committee will review regional progress, evaluate data, and guide opportunities for scaling and collaboration across the state.
Regional Grant FAQs
This initiative duplicates the federal RHTP at the state level. It aims to reduce healthcare gaps and costs, foster regional partnerships, and advance rural health outcomes in alignment with CMS goals. It launches Oct. 1, 2026, with $120M awarded annually across eight regional coalitions.
- Applications and Funding
How can my organization sign up for funding?
Organizations cannot apply alone; they must participate as part of a regional coalition. Each of the eight regions will submit one unified application that includes all proposed projects and subrecipients. Organizations should connect with their regional partners to be included in their region’s application.Where do regions submit their letter of intent and other application materials?
The Health and Family Services (HFS) team, comprised of staff from the Family and Social Services Administration (FSSA) and the Indiana Department of Health (IDOH), will publish the Make Rural Indiana Healthy Again Regional Grant Application and submission instructions by March 1, 2026. All letters of intent and full applications will be submitted through the state-managed application portal or designated submission inbox specified in the RFA.If a region is unable to submit the application by the deadline, does it have any recourse?
The default expectation is that applications are due July 1, 2026, and late submissions will not be accepted. If a region faces extraordinary circumstances, it must notify HFS as early as possible during the technical assistance period (March–July 2026). Any accommodation would be rare, case-by-case, and at the discretion of the State Executive Oversight Committee.What data should regions examine to prepare for their applications?
At a minimum, regions should review:- Local health outcome data (chronic disease, maternal and infant health, behavioral health, preventable ED visits)
- Access and capacity data (workforce, facility availability, travel times, service gaps)
- Non-medical needs data (transportation, food access, housing, broadband)
- Existing program and infrastructure maps (what already exists, where duplication or gaps occur)
IDOH will provide regional data snapshots which regions are expected to use to anchor their needs assessments.
Since money will be coming to regions on Oct. 1, 2026, how long do the regions have to spend their money?
The Regional Grants are designed as a five-year funding period (FY27–FY31), with funding distributed annually starting Oct. 1, 2026. Regions will receive annual allocations, and funds must be spent within each grant year in alignment with approved budgets, with limited flexibility for carryover as permitted by state and federal rules. The regional grant funding amount awarded to each region each year may be recalibrated based on the overall recalibration of Indiana awarded funds, which occurs each October, effective that federal fiscal year.Will regions receive funding for administrative costs?
Yes. Reasonable administrative and program management costs at both the regional and organizational level are allowable, as long as they:- Are clearly described in the budget.
- Are necessary for program implementation, oversight, and reporting.
- Stay within any indirect cost limits set by CMS and the state.
- Review and Oversight
How will applications be assessed, and who conducts the review?
Regional grant applications will be reviewed through a competitive scoring process led by theGROW State Steering Committee, and their designees. Proposals will be scored on factors such as:- Strength and breadth of the regional coalition
- Data-driven needs assessment
- Alignment with required categories and KPOs
- Evidence of non-duplication and filling gaps
- Quality of sustainability and governance plans
- Commitment to participation in statewide GROW initiatives (further clarification on regional grant participation is outlined in the RFF)
All eight regions are expected to receive funding, but award size will vary by population served and quality of application.
How will the state ensure the use of AI in reviewing regional applications is fair? Will AI be used?
The core scoring and funding decisions will be made by human reviewers. The state may use technology tools (including limited AI or analytics) to assist with tasks such as consistency checks or data aggregation, but no application will be approved or denied solely by an AI system. Any use of AI will be transparent, standardized, and overseen by human reviewers to protect fairness.Just to clarify, the regions don't self-select the regional committees, but the state executive oversight selects the individuals who will make up the regional committees? Who is going to certify the submission groups?
HFS will work with state associations to identify individuals who will lead the Regional Coalitions and the Regional Committee members. The State Executive Oversight Committee will approve the composition of each Regional Committee based on required roles (e.g., rural hospitals, provider, non-provider medical worker, CBOs, patient, LHD, Medicaid MCO, business, pharmacy, legislator). The same executive body (or its designee) will certify each Regional Coalition as eligible to submit a unified regional application.How are committees ensuring the right people are included in decision-making? What does it mean for regional community members who volunteer?
Each Regional Committee must include specific stakeholder types (e.g., rural hospitals, CBOs, patient representative, LHD, Medicaid MCO, business sector). Community members or groups who volunteer will be considered during committee formation and can:- Serve in required roles (e.g., CBO, patient representative)
- Participate in advisory councils, workgroups, or project design processes
Final membership is approved by the State Executive Oversight Committee to ensure balanced representation and avoid dominance by any single entity.
How does the overall governance structure work together?

- Governor / State Executive Oversight Committee: Final authority over awards, compliance, and course correction.
- RHTP State Steering Committee: Reviews progress, advises on strategy, and lifts cross-regional issues.
- IDOH Regional Grant Initiative Team: ongoing oversight of regions throughout grant period; state management of contracts, grant agreements, leads application review and scoring and makes funding recommendations with final approval by the State Executive Oversight Committee.
- Regional Grant State Contractors: Serve as the coordinator of all activities associated with the regional activities, direct communication with IDOH Regional Grant Initiative Team for clarifications and escalations as needed.
- Regional Coalition Leader: Design, prioritize, and oversee projects within their region; monitor budgets and outcomes; ensure alignment with state requirements.
- Regional Committees: ongoing strategic guidance to regional coalitions – must approve application before submission to state.
- Regional Grant Technical Assistance Provider (state-contracted): will provide application assistance, performance monitoring, and cross-regional learning support.
Governance is layered so decisions are locally informed but state-accountable.
- Rural and Regional Representation
How is rurality being assessed/defined?
Counties with HRSA Rural Designation are considered fully rural and organizations within those counties may be direct recipients of the RHTP funds as part of the regional application. Organizations in these counties should be prioritized in regional coalitions and subsequent applications. These 64 counties are noted in the regional map as solid-colored counties.There will be nine additional counties which may also be considered direct recipients eligible for RHTP funds as noted with stripes in the regional map. The stripes indicate a county has either a HRSA rural designation with a distinction that only some parts of the county are eligible for rural health grants; or a non HRSA rural designated county, but has a HRSA designated critical access hospital. It is important to note that organizations in metropolitan areas within the striped counties will only be funded with justification as to how they are serving rural residents. Regional applications should provide this detailed explanation within the work plan narrative. Partially rural counties are identified as counties eligible for funding directly from the RHTP grant.
Will the regions mirror existing public health preparedness districts? If not, have those lines been drawn yet?
The Rural Health Regional Map is based on the HRSA designation of counties in Indiana eligible for rural health grant funding. From there, the eight regions align with natural care/referral patterns and trauma/preparedness regions.How can we ensure rural hospitals are represented on the Regional Committees?
Each Regional Committee is required to include at least one healthcare provider representative, and the program strongly expects that in rural-focused regions, this role will be filled by a rural hospital or rural health provider organization. Regions will be encouraged to involve multiple rural hospitals as subrecipients and advisory partners, even beyond the minimum committee seat.How can we ensure community mental health centers/CCBHCs are represented?
Community mental health centers and CCBHCs are explicitly identified as key stakeholders throughout GROW and can serve as:- Provider representatives on the Regional Committee
- Subrecipients for behavioral health projects
- Leads or co-leads on behavioral health and workforce initiatives
The State will strongly encourage behavioral health representation in both the committee membership and project portfolio.
- Eligibility and Requirements
What types of costs are allowed and what are not allowed? Clearly identify and explain the parameters for Indiana Regional Coalitions spending GROW money.
In general, eligible costs must:- Directly support access, technology innovation, workforce development, MRAHA, or innovative care
- Be tied to approved regional projects that advance KPOs
- Occur in and serve rural areas
Key parameters include:
- Capital costs: Capped at 20% of a region’s total budget
- EMR expenditures: Capped at 5% of a region’s total budget
- Program costs: Care delivery, workforce, technology, telehealth, transportation solutions, paraprofessional deployment, quality improvement, training, and evaluation are generally allowable when tied to approved projects
- Unallowable costs include : major construction, non-health-related infrastructure, food, general government uses, or activities outside the RHTP scope or service area.
Further details can be in the RFF.
What is the role of ineligible counties based on HRSA rural health funding? Can those counties still be a subgrantee?
Counties that do not meet the HRSA/FORHP rural definition cannot be the primary target of RHTP investments. However, entities in non-rural counties may participate as subrecipients if their activities clearly:- Serve rural residents
- Support regional infrastructure or specialty access that rural patients rely on
All funded activities and services must still be rural-serving.
Do regions need to describe how subrecipients will select their contracts and hold those contractors accountable?
Yes. Regional applications must outline:- Transparent procurement processes for sub-contractors
- How subrecipients will select and monitor vendors
- How performance, data, and compliance will be tracked
- How corrective action will occur if contractors underperform
The state will also impose reporting and audit requirements on subrecipients.
What is considered program duplication? Can funding be used to expand existing programs to include more communities and systems of care?
Program duplication occurs when a new project replicates an existing service or infrastructure without adding value, reach, or efficiency. GROW funds cannot be used to simply replace current funding streams or pay for the same service twice. However, funds can be used to:- Expand successful programs to additional rural communities
- Add new populations, sites, or modalities (e.g., telehealth, home-based care)
- Integrate programs to reduce fragmentation and improve outcomes
Regions must clearly show how funding fills gaps, scales impact, or increases efficiency, not just continues the status quo.
Does the program limit funding to certain types of providers or facilities?
No single provider type is exclusively favored, but priority is placed on entities that are critical to rural systems, such as:- CAHs, rural hospitals
- FQHCs and rural health clinics
- CMHCs and CCBHCs
- EMS and mobile integrated health
- Local health departments and CBOs
Proposed funding must support rural-serving entities and align with the required categories and KPOs.
Are regional grants able to fund healthcare services across state borders (e.g., Cincinnati Children’s clinics in Indiana), and how are subrecipient arrangements and lab samples handled when crossing state lines?
Funding may support care models and partnerships that cross state lines if:- Services are delivered in or clearly serve Indiana rural communities, and
- The arrangement complies with federal and state rules on subawards, licensure and billing.
Cross-border labs, contracts, and subawards must be structured with formal agreements and must still meet all RHTP and Indiana requirements for allowable, rural-serving expenditures.
How should regions consider initiative sustainability after the GROW funding period?
Every regional proposal must include a sustainability plan that addresses:- How programs will demonstrate ROI or cost savings
- How payers (Medicaid, Medicare, commercial) can support ongoing reimbursement
- How shared services, workforce, and infrastructure will be embedded into routine operations
- How partnerships will persist beyond the grant
Sustainability is a core scoring criterion, not an add-on.
Is the state responsible for issuing RFPs and purchasing resources for regional grants, and if so, how is ownership transitioning to the regions?
All contracts will come directly from the state. The state will:- Issue state-level procurements for certain supports (e.g., evaluation, technical assistance, some statewide tools).
- Execute grant agreements directly with individual entities carrying out regional activities.
Subrecipients within each region will generally be responsible for their own procurements for needed services within state and federal rules. Ownership of equipment or systems purchased with GROW funds will be defined in the grant agreement but is typically vested in the subrecipient, with conditions for use, reporting, and disposition.
Define subgrantee, subrecipient, subaward, sub agreement.
The State of Indiana is the awardee for RHTP funds. The disbursement of these funds to other entities falls into these categories:- Subrecipient / Subgrantee: An organization that receives GROW funds from the state to carry out a portion of the program (not just to provide goods/services).
- Subaward: The formal award of funds from the state (or primary grantee) to a subrecipient documented in a grant or contract.
- Sub agreement: The legal agreement (grant agreement or contract) that outlines the subrecipient’s scope, budget, reporting, and compliance obligations.
Subrecipients may further subaward or procure services via GROW funds, and all additional agreements are subject to state and federal rules.
- Renovations and Capital Expenditures
What is considered “Minor alterations or renovations”? Can you explain what sort of additional retrofitting would be permissible under the program versus when it would be impermissible? Is there a “bright line” on when renovations are permissible? Clarify capital expenditures here.
Minor alterations or renovations are small-scale facility changes that support program implementation without constituting major construction or new facility build-out. Examples include:- Interior reconfiguration of existing clinical space
- Adding exam rooms or telehealth pods
- Upgrading HVAC, electrical, or plumbing to support care delivery
- Accessibility improvements (ramps, doors, restrooms)
The “bright line” is that renovations cannot become large-scale construction, new buildings, or major structural changes. Additionally, total capital costs (including renovations) are limited to 20% of a region’s total budget.
Further clarification on regional grant renovations and capital expenditures is outlined in the RFF.Can the program fund renovations or subawards to support housing for training rural students or trainees in healthcare settings?
GROW funds are not intended to function as a housing program. Limited, clearly justified renovations to existing training facilities (e.g., student training spaces in rural clinics or hospitals) may be allowable, but building or renovating housing units purely for lodging trainees would generally fall outside the intended scope. Any proposal in this space would need to:- Be clearly tied to workforce training capacity
- Fit within capital caps
- Comply with federal construction restrictions
Can GROW money be used to install playgrounds, paths or walking trails in a movement-based initiative to prevent chronic disease like diabetes and obesity?
The program focuses on health care and public health delivery infrastructure, not general recreation infrastructure. While physical activity is a key prevention strategy, GROW funds are unlikely to support stand-alone recreational capital projects (playgrounds, trails) unless:- They are tightly integrated into a clinical or community care model (e.g., prescribed exercise program)
- They are clearly justified as a minor component of a larger, health-system-led initiative
- They remain within capital caps and federal guidelines
Regions are better positioned to use GROW funds for clinical, telehealth, care coordination, workforce, and evidence-based preventive services, and leverage other funding streams for broader built-environment projects.