If you’re looking for a broader overview of the Rural Health Transformation Program (RHTP), our Rural Healthcare Transformation guide explains the program, its goals, and what it could mean for rural healthcare organizations.
If you want to understand what RHTP means for independent practices, read our guide to RHTP and independent practices before exploring the funding opportunities discussed below.
But there’s an important distinction.
Not applying directly to CMS does not necessarily mean an independent practice cannot participate in or benefit from RHTP-funded programs.
As states move from planning into implementation, they are using different funding mechanisms, including grants, contracts, subawards, regional partnerships, and provider-focused initiatives. Whether your practice can participate depends on your state’s RHTP plan and the requirements of the specific opportunity.
So, if you’re an independent physician or DPC practice wondering, “Can I actually access RHTP funding?”, here’s what you need to know.
First, Understand How RHTP Funding Works
The Rural Health Transformation Program is a federal program designed to strengthen rural healthcare through state-led transformation initiatives.
CMS awarded RHTP funding to all 50 states for the five-year program period covering fiscal years 2026 through 2030. However, individual practices did not submit applications directly to CMS for those state awards.
Instead, states determine how their RHTP funding is implemented within their approved plans.
That means there are two different questions:
- Can an independent practice apply directly to CMS for RHTP funding? Generally, no.
- Can an independent practice participate in a state-funded RHTP initiative? Potentially, depending on the state and specific program.
That distinction is important because RHTP eligibility is not necessarily the same across all states or funding opportunities.
Some states may direct funding primarily through hospitals, health systems, FQHCs, RHCs, or other organizations. Others may create opportunities involving physician practices, regional partnerships, technology providers, or other rural healthcare organizations.
Can Independent Practices Get RHTP Funding?
Potentially—but the opportunity is state-specific.
An independent practice should not assume that it is automatically excluded simply because it is not a hospital, FQHC, or RHC.
Instead, look at your state’s:
- RHTP implementation plan
- Grant and subaward announcements
- Requests for applications (RFAs)
- Requests for proposals (RFPs)
- Provider partnership opportunities
- Regional healthcare initiatives
- Rural healthcare workforce and technology programs
The eligibility requirements for each opportunity matter more than the practice’s ownership structure alone.
State implementation already shows why practices should evaluate opportunities individually. Some state RHTP initiatives include physician practices or other community providers among eligible participants, while others structure funding around hospitals, health systems, or regional organizations.
3 Ways Independent Practices Can Participate
Apply Through a State RHTP Opportunity
The first option is to look for an RHTP-funded opportunity where your practice is explicitly eligible.
States may distribute RHTP funds through different mechanisms, including grants, contracts, subawards, or competitive funding opportunities.
If your state publishes an RFA that includes independent physician practices, your practice may be able to apply directly—provided it meets the stated requirements.
Practical next step: Find your state’s RHTP implementation page and look specifically for current funding announcements, eligible-provider lists, RFAs, and subaward opportunities.
Don’t rely solely on the original federal RHTP announcement. The state-level implementation details are what determine what your practice can actually access.
Join a Regional or Multi-Provider Collaboration
Some RHTP initiatives are designed around regional healthcare partnerships rather than individual practices.
Depending on the state’s structure, opportunities may involve:
- Rural hospitals
- Physician practices
- Health systems
- Community health organizations
- Provider networks
- Clinically integrated organizations
- Other rural healthcare partners
If you’re already part of an IPA, ACO, clinically integrated network, or other provider organization, ask whether it is participating in an RHTP-funded initiative.
You may not need to be the primary award recipient to benefit from the program.
Partner With an RHTP-Funded Organization
Another potential route is working with an organization that receives RHTP funding.
For example, a rural hospital or other eligible organization could receive RHTP funding for an initiative involving care coordination, behavioral health, remote monitoring, telehealth, workforce development, or health IT and potentially work with community physicians or other providers, depending on the state’s program structure.
In that situation, your practice may participate as a contracted or community partner rather than as the primary RHTP awardee.
However, a referral relationship by itself does not mean RHTP funding is available to your practice. The specific funding agreement and state program requirements determine whether contracting or subawarding is permitted.
What Can RHTP Potentially Support?
State initiatives can address areas such as:
- Rural healthcare workforce
- Health information technology
- Telehealth
- Care coordination
- Chronic disease management
- Behavioral health
- Technology-enabled care
- Healthcare access
- Rural provider capacity
- Innovative care delivery models
The exact uses depend on the state’s approved RHTP plan and individual funding opportunities.
For an independent practice, this means the most relevant opportunities may not be labeled “funding for independent practices.“
Instead, look for initiatives involving rural technology, chronic care, telehealth, care coordination, behavioral health, workforce, or provider infrastructure.
If RHTP Funding Isn’t Available, What Are Your Options?
This is where it’s important to separate government program funding from Medicare reimbursement.
RHTP is a state-directed funding program.
Medicare care-management programs, by contrast, are reimbursement mechanisms for eligible services provided to qualifying patients by providers that meet the applicable Medicare requirements.
That means you don’t necessarily have to wait for an RHTP grant to strengthen your practice’s chronic-care capabilities.
Remote Patient Monitoring (RPM)
Eligible Medicare-enrolled practices may be able to bill Medicare for covered remote patient monitoring services when the applicable patient, service, documentation, and billing requirements are met.
RPM can support ongoing monitoring of certain patients using connected medical devices and can create a structured workflow for managing patients between office visits.
See our guide to RPM CPT codes for a closer look at the billing structure.
Chronic Care Management (CCM)
CCM provides a structured approach to coordinating care for eligible Medicare patients with multiple chronic conditions.
When applicable Medicare requirements are met, CCM can provide reimbursement for qualifying care-management services without relying on an RHTP grant or hospital partnership.
Principal Care Management (PCM)
PCM focuses on patients who require ongoing care management for a single complex or serious chronic condition.
For practices treating patients who meet the applicable requirements, PCM can be another potential Medicare reimbursement pathway.
Transitional Care Management (TCM)
TCM supports care coordination during the transition of eligible patients from certain inpatient or other qualifying healthcare settings back to the community.
For practices that manage qualifying transitions, TCM may provide another opportunity to support structured follow-up care.
Behavioral Health Integration (BHI)
BHI can help practices integrate behavioral health services into primary care for eligible patients.
For primary care practices already addressing depression, anxiety, or other behavioral health needs, BHI may complement existing clinical workflows when Medicare requirements are satisfied.
DPC Practices Need an Extra Layer of Planning
If you’re operating a Direct Primary Care practice, don’t assume that every Medicare reimbursement program automatically fits your practice’s membership and payer structure.
DPC practices can have different payer and billing arrangements, including pure membership models and hybrid models.
That distinction matters when evaluating RPM, CCM, PCM, TCM, or BHI.
If you’re a DPC or hybrid practice considering RPM, first evaluate:
- Your Medicare enrollment and participation status
- Your membership and payer structure
- Whether the service can be billed separately
- Patient eligibility
- Documentation requirements
- Clinical staffing and monitoring workflows
- Applicable Medicare billing requirements
Our guide on how DPC practices can successfully add RPM explains how RPM can fit into different DPC models.
You can also read our guide on combining RPM and CCM to understand how the programs can complement one another when the applicable requirements are met.
RHTP vs. Medicare Reimbursement: What’s the Difference?
The simplest way to think about the two approaches is this:
RHTP | Medicare Reimbursement |
State-directed federal funding | Payment for qualifying covered services |
Implemented through state plans | Governed by Medicare billing rules |
Funding depends on state priorities | Depends on provider, patient, and service eligibility |
May support infrastructure and transformation | Tied to delivery of qualifying services |
May involve grants, contracts, or subawards | Requires compliant billing and documentation |
Opportunity varies by state | Program requirements apply nationally, subject to applicable Medicare rules |
Neither approach should automatically replace the other.
A rural practice may find an RHTP-funded partnership that supports technology or care transformation while also developing reimbursable care-management services that operate independently of grant funding.
What Independent Practices Should Do in 2026
If you’re an independent rural practice, don’t simply assume that RHTP funding is unavailable.
Instead:
Find Your State’s RHTP Implementation Page
Look for the most recent program information rather than relying solely on the original federal announcement.
For example, New York’s Department of Health publishes its RHTP plan, funding opportunities, guidance, and application materials on its Transforming Rural Healthcare page.
Review Current Funding Opportunities
Search for RFAs, RFPs, subawards, grants, contracts, and provider-partnership programs.
Check the Eligibility Language
Look for terms such as:
- Physician practice
- Independent practice
- Rural provider
- Rural healthcare organization
- Community provider
- Primary care provider
- Eligible rural entity
Identify Potential Partners
If your practice cannot apply directly, identify rural hospitals, health systems, provider networks, or community organizations participating in relevant RHTP initiatives.
Separately Evaluate Medicare Reimbursement
Don’t confuse RHTP eligibility with eligibility for RPM, CCM, PCM, TCM, or BHI.
These are separate mechanisms with their own Medicare requirements.
Evaluate Your Technology Infrastructure
If you are considering RPM or care-management programs, make sure your EHR and operational workflows can support patient enrollment, monitoring, documentation, care coordination, and billing requirements.
The Bottom Line
RHTP isn’t a federal grant that independent practices apply for directly. But that doesn’t mean independent practices are categorically excluded from every RHTP-funded opportunity.
The real question is what your state is doing with its RHTP allocation.
Some opportunities may be structured around hospitals or larger organizations. Others may involve rural physician practices, regional collaborations, technology initiatives, or community-based providers.
For independent practices, the smartest approach is therefore two-track:
Monitor your state’s RHTP opportunities while building sustainable reimbursement-based programs that don’t depend on a grant.
RPM, CCM, PCM, TCM, and BHI may provide potential Medicare reimbursement when the applicable requirements are met. These programs can help practices expand care coordination and ongoing patient management without relying entirely on external grant funding.
For practices implementing these programs, the right technology can reduce administrative friction by connecting clinical workflows, patient monitoring, documentation, and care-management processes within the practice’s existing EHR environment.
Planning a rural care transformation strategy? Explore Advaa Health’s Rural Healthcare Transformation resources to see how technology-enabled care, RPM, and connected workflows can support rural practices.
Frequently Asked Questions
Can independent practices apply directly for RHTP funding?
Independent practices do not apply directly to CMS for a state’s RHTP award. However, a practice may be able to participate in a state-funded RHTP opportunity depending on the state’s implementation plan and the eligibility requirements of the specific program.
Can physician practices receive RHTP funding?
Potentially. Eligibility varies by state and funding opportunity. Some state-level RHTP programs may allow physician practices to participate directly, while others may require participation through a hospital, network, health system, or other eligible organization.
Can RHTP funding support RPM?
Potentially. Whether RPM is supported depends on the state’s approved RHTP initiative and how the state structures its funding. RHTP funding and Medicare RPM reimbursement are separate mechanisms.
Is RPM an alternative to RHTP funding?
Not exactly. RHTP is a government-funded transformation program, while RPM is a Medicare reimbursement mechanism for eligible services. A practice may potentially use both, depending on its eligibility and the specific program requirements.
Can DPC practices use Medicare RPM reimbursement?
DPC practices need to evaluate their specific membership, payer, and Medicare participation structure before implementing Medicare-billed RPM or other care-management services.
