What Is the Rural Health Transformation Program?

The Rural Health Transformation Program (RHTP) is a landmark $50 billion federal initiative created under Section 71401 of the One Big Beautiful Bill Act (Public Law 119-21). Administered by CMS, the program distributes $10 billion annually from FY2026 through FY2030 to all 50 states through cooperative agreements — no state matching funds required.

RHTP is designed to transform rural healthcare by investing in infrastructure, technology, workforce, and care delivery models that create lasting, sustainable improvements for rural communities. Learn more about RHTP on our hub page.

Five Strategic Goals

Goal 1: Enhance Access to CareExpand healthcare services in rural communities, including telehealth, mobile health units, and satellite clinics to reduce travel burdens.
Goal 2: Strengthen the Rural Healthcare WorkforceFund recruitment, retention, training, and pipeline programs for healthcare professionals serving rural areas.
Goal 3: Improve Health OutcomesAddress chronic disease, behavioral health, maternal health, and preventive care to measurably improve rural population health.
Goal 4: Advance Health EquityReduce disparities in healthcare access and outcomes for underserved rural populations including tribal communities.
Goal 5: Foster Technology and InnovationInvest in health IT, interoperability, telehealth, AI, remote patient monitoring, and cybersecurity infrastructure.

Vermont’s RHTP Program

Program Name
The Vermont Rural Health Transformation Program
FY2026 Funding
$195,053,740
Lead Agency
Vermont Department of Health
Program Duration
FY2026 – FY2030 (5 years)

Key Initiatives & Focus Areas

  • Telehealth expansion for mountain communities
  • Behavioral health and substance use treatment
  • Health IT modernization and Vermont Health Information Exchange
  • Rural workforce recruitment and retention
  • Community health worker and care coordination programs

Unique Aspects of Vermont’s Program

  • One of the most rural states by population percentage
  • Strong existing health reform infrastructure through Green Mountain Care
  • Vermont Health Information Exchange provides connectivity foundation
  • Aging population with complex chronic care needs
  • Seasonal tourism creates variable demand for healthcare services

How Technology Supports RHTP in Vermont

The Interoperability Challenge

Rural healthcare facilities face significant technology gaps compared to their urban counterparts. Nationally, only 48% of rural hospitals have achieved basic interoperability, compared to 62% of urban hospitals. This data-sharing gap directly impacts care quality, coordination, and outcomes for rural patients.

RHTP’s Strategic Goal 5 specifically targets technology innovation, including a Technology Innovation Catalyst Fund that supports interoperability, telehealth, remote patient monitoring, AI-enabled health tools, and cybersecurity.

How Julota Addresses RHTP Technology Requirements

Julota is a cloud-based SaaS interoperability platform purpose-built for the challenges rural healthcare organizations face. Here’s how Julota supports RHTP goals in Vermont:

  • FHIR-Native Interoperability: Julota’s platform supports HL7 FHIR APIs and G10 compliance, meeting the interoperability standards required by RHTP and the 21st Century Cures Act. Learn about Julota’s platform.
  • Health Information Exchange Connectivity: Connect rural providers across Vermont to state and regional HIEs, enabling real-time data sharing that improves care coordination and reduces duplication.
  • Care Coordination & Closed-Loop Referrals: Julota’s closed-loop referral management ensures patients don’t fall through the cracks — critical for rural communities where follow-up can require long-distance travel.
  • MIH-CP & Community Paramedicine Support: Julota’s MIH-CP solution supports the mobile integrated health and community paramedicine models that many states are funding under RHTP.

RHTP Eligibility in Vermont

RHTP funds flow from CMS to Vermont through a cooperative agreement. The state then distributes funds to eligible subrecipients through competitive processes.

Eligible Organization Types

  • Critical Access Hospitals (CAHs) — Rural hospitals with 25 or fewer beds
  • Federally Qualified Health Centers (FQHCs) — Community health centers serving underserved populations
  • Rural Health Clinics (RHCs) — Clinics in designated shortage areas
  • Community Behavioral Health Providers — Including Certified Community Behavioral Health Clinics (CCBHCs)
  • Emergency Medical Services (EMS) — Ambulance services and first responders
  • Tribal Health Organizations — Indian Health Service and tribal facilities
  • Local Health Departments — County and regional public health agencies
  • Universities and Training Programs — Workforce development partners

How to Apply

Organizations in Vermont should contact Vermont Department of Health for subrecipient application details. Most states distribute RHTP funds through competitive RFP processes that require demonstrating alignment with the state’s approved Rural Health Transformation Plan.

Key compliance requirements include SAM.gov registration, adherence to 2 CFR 200 uniform guidance, and commitment to quarterly and annual reporting on performance metrics and milestones.

Key Questions About RHTP in Vermont

How much RHTP funding did Vermont receive?

Vermont received RHTP funding as part of the FY2026 allocation. As one of the most rural states by population percentage, Vermont's allocation reflects significant rural healthcare needs.

What is Vermont's RHTP?

Vermont's RHTP builds on the state's health reform traditions, focusing on telehealth, behavioral health, health IT modernization, workforce development, and care coordination for rural communities.

Who is eligible for RHTP in Vermont?

Eligible organizations include Critical Access Hospitals, FQHCs, Rural Health Clinics, behavioral health providers, EMS agencies, and other rural healthcare organizations.

What technology does Vermont's RHTP fund?

Vermont's RHTP supports telehealth systems, VHIE integration, EHR modernization, remote patient monitoring, and cybersecurity improvements for rural providers.

How does RHTP build on Vermont's health reform experience?

RHTP complements Vermont's Green Mountain Care health reform efforts, extending value-based care, care coordination, and health IT infrastructure to rural communities.

How can Vermont providers apply for RHTP?

Vermont providers should contact the Department of Health for RHTP subrecipient information and application details.

Ready to Build RHTP-Ready Infrastructure in Vermont?

Julota helps rural healthcare organizations meet RHTP interoperability requirements with a cloud-based platform that connects providers, enables data sharing, and supports care coordination across your community.

Call us: 833-445-1600