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RHTP state profile · Kentucky

Kentucky Rural Health Transformation Program

Kentucky received $212.9 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 11th of 50 states. The Kentucky Department for Public Health (KDPH), part of the Cabinet for Health and Family Services, runs the program, which funds five initiatives across rural Kentucky, from chronic care hubs and maternal care teams to rural dental access and EMS.

$212.9MYear 1 award, 11th of 50
5Funded initiatives
85 / 120Kentucky counties are rural
KDPHKentucky Department for Public Health

Spending data in the RHTP Year One Report covers December 29, 2025 to July 31, 2026, the latest CMS reporting window.

At a glance

Kentucky's program at a glance

The award is fixed for the year. Spending moves every quarter, so Kentucky's section of the RHTP Year One Report tracks how much was put to work, and with whom, through July 31, 2026. It updates after each CMS data release.

Year 1 award$212,905,591, 11th of 50 states
Run byKentucky Department for Public Health
Budget Period 1December 29, 2025 to October 30, 2026
Initiatives5
Rural counties85 of 120
Spending data through July 31, 2026Kentucky's section of the Year One Report →
Initiatives

What does Kentucky's RHTP fund?

Kentucky's RHTP funds five initiatives across chronic disease, maternal and infant health, behavioral health crisis care, dental access and EMS. Every KDPH funding opportunity maps to one of these five, and the approved plan does not allow new initiatives outside them.

01

Rural Community Hubs for Chronic Care Innovation

Hub-and-spoke networks led by local organizations that prevent and manage chronic disease, starting with obesity and diabetes.

02

PoWERing Rural Maternal and Infant Health

Local teams of community health workers, doulas and peer supporters, backed by telehealth, that support women in maternity care deserts from pregnancy through one year after birth.

03

Rapid Response to Recovery (EmPATH Model and Mobile Crisis)

Mobile crisis teams, telebehavioral health and EmPATH crisis stabilization units for mental health and substance use crises.

04

Rooted in Health: Rural Dental Access Program

More dental hygiene training, teledental hubs and mobile and portable dental clinics for preventive care.

05

From Crisis to Care: Integrated EMS and Trauma Response

EMS workforce training, treat-in-place care, community paramedicine and regional coordination of EMS and trauma care.

Recipients by initiative are in Kentucky's section of the RHTP Year One Report.

Rural county (85)Metro counties (35)
Eligibility

Which Kentucky counties are eligible for RHTP funding?

Kentucky's program treats nonmetropolitan counties as rural, which covers 85 of the state's 120 counties under USDA's definition, and it also counts partly rural outlying metro counties. About 1.87 million Kentuckians, or 41.6% of residents, live in rural areas. Each funding round sets its own eligibility, and some are limited to specific Area Development Districts or provider types.

How to apply

How can Kentucky providers apply for RHTP funding?

Kentucky providers apply through Requests for Applications (RFAs) from KDPH, posted on the Kentucky RHTP Funding Opportunities page and submitted to the contact named in each RFA. Two rounds are open: transportation support for the 14 Community Mental Health Centers, due November 6, 2026, and Rural Community Hub Lead applications for 12 more Area Development Districts, due December 18, 2026, through the Foundation for a Healthy Kentucky. Providers and vendors don't apply to CMS directly.

  1. Match the work to an initiative.Funding only goes to work that fits one of the five.
  2. Watch for new rounds.Complete the RHTP Interest and Information Form for updates, and check the Funding Opportunities page.
  3. Register in SAM.gov.It is standard for federally funded grants and contracts.
  4. Plan for federal rules.Grant recipients follow federal grant, reporting and audit rules. A Single Audit applies at $1 million or more in federal spending a year.
  5. Ask KDPH directly.Email ruralhealthplan@ky.gov.
Federal terms

Four rules that shape every award

Federal terms follow the money down to every Kentucky recipient.

Grants and contracts carry different obligations

A subaward makes your organization a subrecipient that carries out part of the program, with federal reporting and audit requirements. A contract pays for goods or services, with lighter requirements.

New rounds follow CMS budget approval

States can't post funding opportunities until CMS approves their budget, so windows can open months into a budget period.

Workforce incentives need a rural commitment

Recruitment and retention payments require clinicians to commit to serving rural communities for at least five years.

Recipients must disclose the federal funding

Under the Stevens Amendment, websites, social posts and other public materials about a funded project must name the federal funding.

Allowable costs

What can Kentucky's RHTP funding pay for?

Kentucky's RHTP funding can pay for work on existing facilities, uncovered care, technology and administration, within federal caps on each use. Applied to Kentucky's Year 1 award, the maximums are:

Capital and infrastructure20% of award
About $42.6M
Provider payments15% of award
About $31.9M
Administrative costs10% of award
About $21.3M
Rural Tech Catalyst Fund10% or $20M, whichever is less
$20.0M
Replacing an existing EMR system5% of award
About $10.6M

Provider payments and capital

Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to Kentucky's plan. They can't raise rates for services providers already bill.

Capital funds go to existing facilities: renovations, accessibility upgrades, HVAC and like-for-like equipment replacement.

Off limits

  • New construction, demolition and major expansions
  • Cosmetic work such as painting, carpet or decor
  • Clinician salaries at facilities that use non-compete clauses
  • Home broadband installation and service
  • Costs already covered by other federal or state funding
Policy commitments

Kentucky's program commitments

Kentucky made no state policy commitments in its application, according to CMS, so none of its funding depends on new laws or rules. Its plan does make four program commitments. One is done.

A3 Team oversight

Run the program through a dedicated A3 Team in KDPH for planning, financial oversight and performance management

A3 and initiative teams launched January 6 to 8, 2026
Done

Hubs statewide

Set up Rural Community Hubs in all of Kentucky's Area Development Districts

First three hubs funded in 2026; applications for the next 12 due December 18, 2026
No date given

Year 1 spending

Spend Budget Period 1 funds

Sep 30, 2027

Long-term sustainability

Explore a public-private or nonprofit model to keep the work going after federal funding ends

No date given

Kentucky already belongs to the physician, nurse and psychology licensure compacts.

Years 2 to 5
$40B

Future awards depend on progress

Year 1 is not a guaranteed annual amount. CMS plans up to $40 billion more nationwide through 2030 and rescores every state each year on progress, data and policy actions.

Unobligated money leaves the state

Funds not obligated by the end of a budget period can't be obligated later and are redistributed to other states.

Funds can be clawed back

CMS can withhold, reduce or recover money for unallowable costs, unapproved plan changes or missed policy commitments. States get 90 days to fix a violation, and most decisions can't be appealed.

Oversight is growing

CMS's Office of Rural Health Transformation plans site visits in all 50 states in 2026. Audits start in 2027.

Method

Reading Kentucky's spending data

Use the numbers in Kentucky's section of the RHTP Year One Report to understand direction and pace, not as an audit.

Put to work is not paid out

Obligated money is signed to a contract or grant. Cash reaches recipients later.

Through July 31, 2026 only

The data covers December 29, 2025 to July 31, 2026, as Kentucky reported it to CMS. Commitments made after July 31, 2026 are not counted yet.

Recipients sit inside line items

The CMS report has no recipient column. Search Kentucky's line item descriptions by name.

Quarterly refresh

CMS updates the data after each quarterly state report, starting with the November 30, 2026 filing.

Announcements

Major Kentucky announcements

  • KDPH reports about $47.7 million in statewide contracts, including teledental and telebehavioral health hubs, EMS communications and coordination, care coordination tools and workforce training.

  • KDPH posts its contract tracker, led by about $29.2 million to the Foundation for a Healthy Kentucky for Rural Community Hubs in the Big Sandy, Lake Cumberland and Purchase regions.

  • CMS issues Kentucky a revised Year 1 Notice of Award.

  • CMS accepts Kentucky's plan in full and awards $212.9 million for Year 1.

Awards announced after July 31, 2026 are not in the CMS spending data yet. They will appear after the next CMS refresh.

Timeline

Key dates

  1. Dec 29, 2025Year 1 award; Budget Period 1 begins
  2. Jan 6, 2026A3 and initiative team kickoffs begin
  3. Feb 5, 2026CMS issues revised Notice of Award
  4. Jul 31, 2026End of the first CMS reporting window; Year One Report spending data runs through this date
  5. Oct 30, 2026Budget Period 1 ends
  6. Nov 6, 2026Transportation support applications due from Community Mental Health Centers
  7. Nov 30, 2026Quarterly reports due; CMS refreshes funding data
  8. Dec 18, 2026Rural Community Hub Lead applications due
  9. Sep 30, 2027Deadline to spend Budget Period 1 funds
  10. 2030Final year of the five-year program
Implications

What this means

For rural hospitals

Kentucky's plan funds services around hospitals more than hospitals themselves: EMS coordination centers, treat-in-place and alternate-destination protocols, EmPATH crisis units and care coordination through the state health information exchange. Watch for EMS and behavioral health rounds, and for hub partnerships in your Area Development District.

For partners and vendors

Kentucky has routed early contracts through the University of Kentucky, the University of Louisville, the Foundation for a Healthy Kentucky, the Kentucky Primary Care Association and local health departments. Partnering with those leads is one route in, and KDPH says solicitations it must compete will be posted publicly. Dental, behavioral health, EMS and community health worker training are the most active lanes.

For applicants and grantees

Build tracking for the measures Kentucky reports to CMS before an award lands. Subrecipients can't opt out of reporting, and their results feed Kentucky's annual rescoring. Plan to spend Budget Period 1 funds by September 30, 2027.

FAQ

Kentucky RHTP FAQs

Who runs Kentucky's Rural Health Transformation Program?

The Kentucky Department for Public Health (KDPH), part of the Cabinet for Health and Family Services, runs Kentucky's Rural Health Transformation Program, using federal funding from the Centers for Medicare & Medicaid Services (CMS). A dedicated A3 Team in KDPH manages planning, finances and performance, KDPH posts funding opportunities, and it answers questions at ruralhealthplan@ky.gov. The program is Kentucky's share of the $50 billion federal Rural Health Transformation Program.

How much RHTP funding did Kentucky receive?

Kentucky received $212,905,591 for Year 1 of the Rural Health Transformation Program, 11th of 50 states. Every state got $100 million in baseline funding, and the rest of Kentucky's award was based on its rural needs, its existing state policies and the strength of its plan. Later years depend on Kentucky's progress.

Can Kentucky RHTP funding pay for construction?

No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of Kentucky's award each year, about $42.6 million in Year 1, can go to work on existing facilities, such as renovations, accessibility upgrades, HVAC replacement and like-for-like equipment replacement.

Can Kentucky providers use RHTP funding to pay for patient care?

Only for care that insurance doesn't already pay for. Provider payments can cover nonreimbursed services, quality bonuses and outcome-based payments tied to Kentucky's plan, up to 15% of the award each year, about $31.9 million in Year 1. They can't raise rates for services providers already bill.

Where can I see how Kentucky is spending its RHTP funding?

The RHTP Year One Report tracks how much of Kentucky's award was put to work through July 31, 2026, by initiative and recipient, using state-reported data from CMS, and is updated after each CMS data release. KDPH also posts an executed contract tracker on its Reports and Documents page. Contracts that started after July 31, 2026 will appear in the report after the next CMS refresh.

Follow Kentucky's money as it moves

The RHTP Year One Report tracks obligations, initiatives and recipients for all 50 states after each CMS data release.

Last updated: November 5, 2026. Sources: KDPH, CMS and state-reported RHTP data.