Transforming Rural Health through Partnerships
Regional partnerships of hospitals, clinics, local health departments and community groups that use community health workers to manage chronic disease and coordinate care.
RHTP state profile · Michigan
Michigan Rural Health Transformation Program
Michigan received $173.1 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 43rd of 50 states. The Michigan Department of Health and Human Services (MDHHS) runs the program, which funds four initiatives across Michigan's 75 fully or partly rural counties, from regional chronic disease partnerships and workforce pipelines to health IT and care closer to home.
Year 1 awards, all 50 statesMI: $173.1M
Texas $281.3MNew Jersey $147.3M
$173.1MYear 1 award, 43rd of 50
4Funded initiatives
75 / 83Michigan counties are fully or partly rural
MDHHSMichigan Department of Health and Human Services
Spending data in the RHTP Year One Report covers December 29, 2025 to July 31, 2026, the latest CMS reporting window.
At a glance
Michigan's program at a glance
The award is fixed for the year. Spending moves every quarter, so Michigan'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$173,128,201, 43rd of 50 states
Run byMichigan Department of Health and Human Services
Budget Period 1December 29, 2025 to October 30, 2026
Initiatives4
Rural counties75 of 83
Spending data through July 31, 2026Michigan's section of the Year One Report →Initiatives
What does Michigan's RHTP fund?
Michigan's RHTP funds four initiatives across partnerships, workforce, technology and community-based care, plus a 5% share of each year's funds set aside for Michigan's tribes. Each initiative includes several programs, and every MDHHS funding opportunity maps to one of the four.
Workforce for Wellness
Recruits, trains and keeps rural health workers, from a high school to health care pipeline to social work stipends, maternal health training and EMS retention.
Interoperability in Action
Health IT upgrades, EHR connections, data integration pilots and rural technology grants that improve data sharing and referrals.
Care Closer to Home Blueprint
Community and home-based care, including rural care delivery hubs, transportation, behavioral health and healthy aging programs for older adults.
Recipients by initiative are in Michigan's section of the RHTP Year One Report.
Source documents
Michigan's full plan is public
The approved plan has more detail than any summary: goals, partners, metrics and timelines for each initiative. Read it before responding to a Michigan solicitation.
PDFMDHHSMichigan RHT Program Project NarrativeThe full plan from MDHHS, including all four initiatives and Michigan's policy commitment.PDFMDHHSMichigan RHT Program SummaryMDHHS's short overview of the plan.PDFMDHHSMichigan RHTP Year 1 Annual ReportMDHHS's CMS-accepted report on Year 1 programs, partners and progress by initiative.PDFCMSCMS 50-State SpotlightsCMS's short profile of each state's program, including Michigan's.
Fully or partly rural county (75)Other counties (8)
Eligibility
Which Michigan counties are eligible for RHTP funding?
Michigan's program covers 75 of the state's 83 counties: the 58 fully rural and 17 partially rural counties identified by the Federal Office of Rural Health Policy. Partially rural counties include Wayne, Oakland, Genesee, Washtenaw and Livingston, while metropolitan counties such as Kalamazoo and Jackson are not covered. MDHHS sets priorities using chronic disease, access to care, Medicaid dependence, child poverty and aging populations, and some rounds favor fully rural counties. Each solicitation states its own geographic requirements.
How to apply
How can Michigan providers apply for RHTP funding?
Michigan providers and vendors apply through MDHHS grant funding opportunities (GFOs), submitted in EGrAMS, the department's online grant system, and through subgrant rounds run by partners such as the Michigan Center for Rural Health (MCRH) and the Michigan Health & Hospital Association. MDHHS's July 2026 GFOs have closed, and MCRH has posted a Behavioral Health Integration Fund for rural health clinics, with an informational webinar on November 6, 2026. Providers and vendors don't apply to CMS directly.
- Match the work to an initiative.Funding only goes to work that fits one of the four, and most rounds require serving fully or partly rural counties.
- Join the RHTP listserv.MDHHS shares new grant opportunities, timelines and application materials through its RHTP email list.
- Register in EGrAMS and SAM.gov.MDHHS GFOs require requesting project director access in EGrAMS before the application deadline. SAM.gov registration is standard for federally funded grants and contracts.
- Plan for federal rules.Grant recipients follow federal grant, reporting and audit rules, and MDHHS pays RHTP funds on a reimbursement basis. A Single Audit applies at $1 million or more in federal spending a year.
- Ask MDHHS directly.Email MDHHSRHTP@michigan.gov.
Federal terms
Four rules that shape every award
Federal terms follow the money down to every Michigan 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 Michigan's RHTP funding pay for?
Michigan's RHTP funding can pay for work on existing facilities, uncovered care, technology and administration, within federal caps on each use. Applied to Michigan's Year 1 award, the maximums are:
Capital and infrastructure20% of award
About $34.6M
Provider payments15% of award
About $26.0M
Administrative costs10% of award
About $17.3M
Rural Tech Catalyst Fund10% or $20M, whichever is less
About $17.3M
Replacing an existing EMR system5% of award
About $8.7M
Provider payments and capital
Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to Michigan'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
Michigan's policy commitments carry deadlines
Michigan made one state policy commitment in its application, on pharmacist scope of practice, according to CMS. It is not done. CMS can reduce or recover funding if it slips.
Pharmacist scope of practice
Expand pharmacists' authority to order lab tests and prescribe based on the results
House Bill 5108 introduced October 2025Michigan already belongs to the physician and psychology licensure compacts. A March 2026 law kept Michigan in the physician compact.
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 Michigan's spending data
Use the numbers in Michigan'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 Michigan 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 Michigan'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 Michigan announcements
MDHHS tells a House subcommittee that $124.6 million in Year 1 grants has been approved for 236 subrecipients, with the rest to be offered through later grant opportunities.
The Michigan Health & Hospital Association releases its first $8.6 million in RHTP funds to member hospitals, giving priority to hospitals in fully rural counties.
MDHHS opens a $12 million transportation grant and a $2.5 million chronic disease grant, after opening $34.2 million in workforce grants on July 8.
MDHHS holds the first meeting of its RHTP Advisory Council.
Governor Whitmer signs Public Act 6 of 2026, keeping Michigan in the Interstate Medical Licensure Compact.
MDHHS announces Michigan's $173.1 million Year 1 award.
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
- Dec 29, 2025Year 1 award; Budget Period 1 begins
- Jul 31, 2026End of the first CMS reporting window; Year One Report spending data runs through this date
- Oct 1, 2026MDHHS Year 1 grant periods begin
- Oct 30, 2026Budget Period 1 ends
- Nov 30, 2026Quarterly reports due; CMS refreshes funding data
- Sep 30, 2027MDHHS Year 1 grant periods end; Year 1 funds must be spent
- 2030Final year of the five-year program
Implications
What this means
For rural hospitals
Hospital funding has flowed mainly through the Michigan Health & Hospital Association's Center of Rural Excellence, which gave priority to hospitals in fully rural counties. RHTP funds can't cover day-to-day operations, so watch for MDHHS's planned rural care delivery hub, behavioral health and healthy aging rounds.
For partners and vendors
MDHHS has routed much of Year 1 through state agencies, MCRH, MHA, local health departments, tribes and Area Agencies on Aging. Partnering with those intermediaries is one route in, alongside MDHHS GFOs in EGrAMS. Interoperability, workforce and community-based care are the largest lanes.
For applicants and grantees
MDHHS pays RHTP funds on a reimbursement basis, so plan cash flow before an award lands. Year 1 grants run Oct 1, 2026 to Sep 30, 2027, and grantees report the metrics Michigan sends to CMS.
FAQ
Michigan RHTP FAQs
Who runs Michigan's Rural Health Transformation Program?
The Michigan Department of Health and Human Services (MDHHS) runs Michigan's Rural Health Transformation Program, using federal funding from the Centers for Medicare & Medicaid Services (CMS). MDHHS manages the state's plan, posts funding opportunities and answers questions at MDHHSRHTP@michigan.gov, with guidance from an RHTP Advisory Council. The program is Michigan's share of the $50 billion federal Rural Health Transformation Program.
How much RHTP funding did Michigan receive?
Michigan received $173,128,201 for Year 1 of the Rural Health Transformation Program, 43rd of 50 states. Every state got $100 million in baseline funding, and the rest of Michigan's award was based on its rural needs, its policy commitments and the strength of its plan. Later years depend on Michigan's progress.
Can Michigan RHTP funding pay for construction?
No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of Michigan's award each year, about $34.6 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 Michigan 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 Michigan's plan, up to 15% of the award each year, about $26.0 million in Year 1. They can't raise rates for services providers already bill.
Where can I see how Michigan is spending its RHTP funding?
The RHTP Year One Report tracks how much of Michigan'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. Grants that began after July 31, such as MDHHS's workforce, transportation and chronic disease awards starting October 1, 2026, will appear after the next CMS refresh.
The Alliance
RHT Alliance members serving Michigan
These RHT Alliance members serve Michigan providers, with support that spans EHR and billing, virtual nursing, virtual care, remote monitoring, health data, diagnostics, patient education, legal counsel and grant writing.
Azalea HealthCloud EHR and billing with AI-assisted charting for rural hospitals and clinics.
Brennan Manna Diamond (BMD Law)Healthcare regulatory, compliance and transaction counsel.
CorstrataTelehealth access to board-certified wound, ostomy and continence nurses.
Equum MedicalTelehealth-enabled physician coverage across specialties.
Health Recovery SolutionsRemote patient monitoring and care management at home.
InterSystemsHealth data platforms and interoperability.
Medical Equipment SourceDigital pathology, mobile labs and lab equipment services.
Rural Health Transformation Funding NetworkGrant writing support for RHTP funding opportunities.
Self Care DecisionsEvidence-based triage that directs patients to the right level of care.
Solid StartsInfant feeding guidance and education for families, built by pediatric feeding specialists.
Teledentistry.com24/7 virtual dental evaluations and emergency triage.
VitalChatVirtual nursing and continuous audio and video care across hospitals.
WebMD IgniteMedically reviewed patient education and outreach, including its HEART rural program.Follow Michigan's money as it moves
The RHTP Year One Report tracks obligations, initiatives and recipients for all 50 states after each CMS data release.