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RHTP state profile · South Carolina

South Carolina Rural Health Transformation Program

South Carolina received $200.0 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 27th of 50 states. The South Carolina Department of Health and Human Services (SCDHHS) runs the program, which funds five initiatives for the state's 1.75 million rural residents, from health IT and remote monitoring to mobile care, rural facility upgrades and health tech startups.

$200.0MYear 1 award, 27th of 50
5Funded initiatives
46 / 46South Carolina counties are covered by every initiative
SCDHHSSouth Carolina 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

South Carolina's program at a glance

The award is fixed for the year. Spending moves every quarter, so South Carolina'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$200,030,252, 27th of 50 states
Run bySouth Carolina Department of Health and Human Services
Budget Period 1December 29, 2025 to October 30, 2026
Initiatives5
Counties covered46 of 46
Spending data through July 31, 2026South Carolina's section of the Year One Report →
Initiatives

What does South Carolina's RHTP fund?

South Carolina's RHTP funds five initiatives across digital health, scaling proven pilots, mobile and community care, workforce and facilities, and rural health technology startups. SCDHHS runs grants for the first four, and the South Carolina Research Authority (SCRA) runs the Tech Catalyst Fund.

01

Connections to Care

Electronic health records, health IT upgrades, remote patient monitoring, telehealth and a statewide resource database to coordinate rural care.

02

Leveling Up

Takes successful pilot programs statewide in chronic disease management, pediatric care quality and workforce development.

03

Wellness Within Reach

Mobile health units, mobile crisis response teams, pop-up clinics and new community care sites for underserved rural residents.

04

Shoring Up to Sustainability

Rural facility upgrades, workforce recruitment and retention, and provider training.

05

Tech Catalyst Fund

Non-dilutive funding, run by SCRA, for early-stage health technology startups that address rural care challenges such as chronic disease.

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

County covered by the plan (46)Other counties (0)
Eligibility

Which South Carolina counties are eligible for RHTP funding?

All 46 South Carolina counties can be served, because the state's plan lists every county as impacted by each of its five initiatives, but funded work must directly benefit residents of HRSA-defined rural areas. South Carolina follows the federal Office of Rural Health Policy definition, which counts about 1.75 million rural residents, 32.6% of the state, and includes rural census tracts inside metro counties. The plan does not publish a count of rural counties; its least densely populated are Allendale, McCormick, Jasper and Williamsburg. Projects based in urban ZIP codes can qualify if they serve rural patients.

Check a site in HRSA's eligibility analyzer →
How to apply

How can South Carolina providers apply for RHTP funding?

South Carolina providers apply through SCDHHS grant opportunities posted on its RHTP grants page and submitted by email to grants@scdhhs.gov, and health tech startups apply to the Tech Catalyst Fund through SCRA. All Year 1 rounds have closed, and Year 2 opportunities have not been announced. 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, and it must directly benefit rural South Carolinians.
  2. Watch for new rounds.SCDHHS announces RHTP opportunities through Medicaid bulletins, so sign up for bulletins and check the RHTP grants page.
  3. Register in SAM.gov.It is standard for federally funded grants and contracts, and the SCDHHS grant documents reference SAM.gov records.
  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. SCDHHS posts a sample subaward agreement.
  5. Ask SCDHHS directly.Email grants@scdhhs.gov.
Federal terms

Four rules that shape every award

Federal terms follow the money down to every South Carolina 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 South Carolina's RHTP funding pay for?

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

Capital and infrastructure20% of award
About $40.0M
Provider payments15% of award
About $30.0M
Administrative costs10% of award
About $20.0M
Rural Tech Catalyst Fund10% or $20M, whichever is less
$20.0M
Replacing an existing EMR system5% of award
About $10.0M

Provider payments and capital

Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to South Carolina'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

South Carolina's policy commitments carry deadlines

South Carolina committed to two policy actions in its application. One is done. CMS can reduce or recover funding if a commitment slips.

SNAP food restriction waiver

Restrict SNAP purchases of candy, soft drinks, energy drinks and other sweetened beverages

USDA approved December 10, 2025; in effect August 31, 2026
Done

Certificate of need reform

Phase out certificate of need requirements under Act 20 of 2023

Signed May 2023; hospital CON ends January 1, 2027, while nursing homes keep CON
Jan 1, 2027

South Carolina already belongs to the nurse, EMS 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 South Carolina's spending data

Use the numbers in South Carolina'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 South Carolina 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 South Carolina'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 South Carolina announcements

  • SCDHHS opens a public input survey, through October 2, to guide RHTP funding decisions for Years 2 through 5.

  • Gov. Henry McMaster announces 228 Year 1 grants totaling $167.3 million, chosen from 712 applications, led by $8.25 million for health IT at Self Regional Healthcare.

  • SCDHHS sends award decisions to all 712 applicants for its four Year 1 grant opportunities.

  • SCRA opens applications for the Tech Catalyst Fund for rural health technology startups, due June 25, 2026.

  • SCDHHS opens four Year 1 grant opportunities: Connections to Care ($75 million), Leveling Up ($27 million), Wellness Within Reach ($27 million) and Shoring Up to Sustainability ($40 million).

  • SCDHHS announces South Carolina's $200 million Year 1 award, with Gov. McMaster naming SCDHHS the lead agency.

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. Jun 1, 2026Year 1 SCDHHS grant applications due
  3. Jul 31, 2026End of the first CMS reporting window; Year One Report spending data runs through this date
  4. Aug 31, 2026SNAP candy and sugary drink restrictions take effect
  5. Oct 30, 2026Budget Period 1 ends
  6. Nov 30, 2026Quarterly reports due; CMS refreshes funding data
  7. Jan 1, 2027Hospital certificate of need requirement ends
  8. 2030Final year of the five-year program
Implications

What this means

For rural hospitals

Facility upgrades were South Carolina's largest Year 1 lane, with 90 Shoring Up to Sustainability awards worth $67.7 million, followed by health IT modernization. Year 2 rounds have not been announced, so follow SCDHHS bulletins.

For partners and vendors

Year 1 grants went straight to providers, health systems and public agencies, and the largest paid for health IT and remote monitoring. Partnering with those grantees is one route in; health tech startups can also look to SCRA's Tech Catalyst Fund.

For applicants and grantees

SCDHHS asks applicants to treat each grant as a one-year award and to plan sustainability without later RHTP years. Build tracking for the metrics South Carolina reports to CMS before an award lands.

FAQ

South Carolina RHTP FAQs

Who runs South Carolina's Rural Health Transformation Program?

The South Carolina Department of Health and Human Services (SCDHHS) runs South Carolina's Rural Health Transformation Program, using federal funding from the Centers for Medicare & Medicaid Services (CMS). Gov. Henry McMaster named SCDHHS the lead agency. It manages the state's plan, posts funding opportunities and answers questions at grants@scdhhs.gov, and the South Carolina Research Authority (SCRA) runs the Tech Catalyst Fund under contract. The program is South Carolina's share of the $50 billion federal Rural Health Transformation Program.

How much RHTP funding did South Carolina receive?

South Carolina received $200,030,252 for Year 1 of the Rural Health Transformation Program, 27th of 50 states. Every state got $100 million in baseline funding, and the rest of South Carolina's award was based on its rural needs, its policy commitments and the strength of its plan. Later years depend on South Carolina's progress.

Can South Carolina RHTP funding pay for construction?

No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of South Carolina's award each year, about $40.0 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 South Carolina 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 South Carolina's plan, up to 15% of the award each year, about $30.0 million in Year 1. They can't raise rates for services providers already bill.

Where can I see how South Carolina is spending its RHTP funding?

The RHTP Year One Report tracks how much of South Carolina'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. Awards announced after July 31, such as the 228 Year 1 grants worth $167.3 million announced in September 2026, will appear after the next CMS refresh.

Follow South Carolina'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: SCDHHS, CMS and state-reported RHTP data.