Receiving an RHTP award is one milestone. Spending it correctly is the next, and technology purchases are where many organizations feel the most pressure. A telehealth booth, a remote patient monitoring platform, or an EHR integration all have to be allowable, competitively sourced where required, and documented well enough to survive a state review.
This guide walks through the steps awardees typically follow when buying telehealth and RPM technology with RHTP funds.
Rules differ by state and by award. Your subaward or grant agreement is the controlling document. For the program basics, see our overview of how to turn RHTP funding into a working RPM and CCM program.
Step 1: Confirm the Purchase Is Allowable
Start with your application and agreement, not with a vendor demo. RHTP funds are federal, so costs must meet the federal cost principles in 2 CFR Part 200, and many states add their own limits. In at least one state’s RFA, funds may only be used for expenses approved in the entity’s submitted application.
Common restrictions to check for:
- Pre-award costs. Several state agreements do not allow costs incurred before the award.
- Costs that are another entity’s legal responsibility.
- Categories a state excludes for a specific initiative, such as administrative costs or construction.
- Budget changes. Moving money between categories may require prior approval from the state.
If you are unsure whether telehealth hardware, software subscriptions, or monitoring services fit your approved budget, ask your state program office in writing and keep the answer.
Step 2: Follow the Procurement Rules That Apply to You
States are expected to comply with federal procurement requirements, and subrecipients typically must as well. Many state agreements state that all purchases are subject to 2 CFR Part 200 and the HHS-specific 2 CFR Part 300.
In practice, this means your purchase method depends on its size:
- Small purchases may need only price reasonableness. Federal rules set a micro-purchase threshold below which quotes are not required, but the price must still be reasonable. That threshold is adjusted periodically, and your organization may set a lower one, so confirm the current figure.
- Larger purchases typically need competition, such as written quotes or a formal solicitation, with documented evaluation.
- Sole-source purchases are allowed only in limited circumstances and need a written justification.
Your state or organization may set stricter thresholds than the federal ones. Follow whichever rule is more restrictive.
Also check how your agreement defines equipment. One state defines equipment as items over $10,000, which affects how you track and report a purchase. Definitions vary, so confirm yours.
Step 3: Screen the Vendor
A vendor that is easy to work with can still create compliance problems. Before you sign, ask for:
- Suspension and debarment status. Federal subaward terms commonly require that you not contract with excluded parties.
- Covered telecommunications equipment compliance. Federal rules restrict purchasing certain telecommunications and video surveillance equipment. If a product includes cameras, microphones, or networking components, ask the vendor to confirm in writing that it complies with 2 CFR 200.216.
- Privacy and security documentation. Request the vendor’s HIPAA-related documentation, not just a marketing statement.
Step 4: Document the Purchase
Good documentation is what makes a purchase defensible months later. Keep a procurement file for each technology purchase that includes:
- The agreement or application language that supports the purchase
- The quotes, bids, or proposals you collected, and why you chose the winner
- A written justification if you used a sole-source or single-bid process
- Vendor screening records (suspension/debarment check, compliance statements)
- The signed contract or purchase order
- Delivery, installation, and acceptance records
- Invoices and proof of payment
- A note on who the technology serves, such as the sites and patient populations
Records should be organized so a state reviewer or auditor can follow the purchase from approval to payment.
Step 5: Build Reporting Into the Plan
States report to CMS, and that expectation flows down to recipients. Ask your program office what data you must submit, how often, and in what format, before you choose a platform. Technology that captures usage, patient counts, and outcomes automatically will save staff time later.
For how to plan for the day the grant ends, see how to turn RHTP funding into a working RPM and CCM program.
Where CareBooth and Advaa Health Fit
If a telemedicine booth is on your shortlist, our guide to what a telemedicine booth is and how CareBooth works explains the product. For how it connects to RPM, CCM, and RHTP programs, read how CareBooth helps you turn RHTP funding into rural care access.
Advaa Health provides CareBooth together with remote patient monitoring, chronic care management, and EHR integration, and can supply vendor documentation to support your procurement file.
Frequently Asked Questions
Do RHTP awardees have to bid out technology purchases?
It depends on the purchase size and your state’s rules. Small purchases may need only a reasonable price, while larger ones usually require competition. Check your agreement and your organization’s procurement policy.
Can RHTP funds pay for telehealth or RPM technology?
Many state plans include technology and telehealth, but allowable uses depend on your approved application and agreement. Confirm with your state program office.
What records should we keep?
Keep the approval language, quotes or bids, vendor screening, contract, delivery records, invoices, and a note on who the technology serves.
The Bottom Line
Buying technology with RHTP funds comes down to five habits: confirm the purchase is allowable, follow the procurement rules that apply, screen the vendor, document each step, and plan for reporting and sustainability. Do these in order, and your purchase is easier to defend and your program easier to keep running.
To talk through how CareBooth, RPM, and CCM can support your RHTP-funded initiative, visit our rural healthcare transformation page.
This article is for general informational purposes and is not legal, procurement, billing, or compliance advice. RHTP permitted uses, procurement thresholds, and reporting requirements vary by state and award. Consult your state program office, compliance officer, or counsel for guidance specific to your organization.
Talk to Advaa Health about CareBooth for your RHTP program →
