# Building a Sustainable Rural Healthcare Workforce: Recruit & Retention

The Rural Health Transformation initiative is a statewide effort focused on strengthening rural healthcare systems and improving access to quality care across South Dakota. Through strategic investments, innovative care models, and cross-agency collaboration, this initiative is designed to build a more resilient, connected, and sustainable rural health system. This RFP solicits proposals from qualified healthcare organizations, facilities, and eligible entities to implement strategies for recruiting, deploying, and retaining a sustainable rural healthcare workforce across rural, underserved, and frontier communities. The State intends to fund and partner with multiple entities to operationalize coordinated, outcomes-driven workforce solutions addressing critical staffing shortages, maldistribution of licensed professionals, high turnover rates, and reliance on temporary staffing. The program supports recruitment and retention through incentive-based five-year service commitment agreements, robust monthly and annual tracking and reporting, and sustainability plans to maintain workforce gains beyond the initial contract. Key requirements include cross-sector stakeholder engagement, clear alignment with South Dakota's Rural Health Transformation strategic priorities, and adherence to state/federal eligibility and non-discrimination provisions. Funding may not be used for new construction (minor renovations allowed with CMS approval), ongoing salary supplantation, duplicative digital health projects, research, lobbying, or independent research and development. Anticipated initial contract period is October 1, 2026 – July 31, 2027, with up to three additional one-year renewals, subject to continued CMS funding. Issuing office: Division of Healthcare Access, Office of Rural Health and Emergency Services, South Dakota Department of Health (RFP #26-09RHT-024). Contact: Josie Petersen (Josie.Petersen@state.sd.us).

## Key facts

- Status: Closed
- Type: RFP
- Issued by: South Dakota eSM Solutions Posting Board (South Dakota)
- Posted: 2026-07-22
- Questions due: 2026-08-04
- Application due: 2026-09-04
- Funding: $6.0M
- Eligible applicants: Licensed Healthcare Facility, Dental Clinic, Healthcare Clinic, Eligible Healthcare Organization
- How to apply: Submit proposals by email to Josie.Petersen@state.sd.us, signed by an authorized officer, with subject line: Proposal for RFP #26-09RHT-024. Proposals must not exceed 50 pages. Cost proposal must be a separate, clearly-labeled document.
- Funding source: Rural Health Transformation Program (CMS)
- Official source: https://postingboard.esmsolutions.com/3444a404-3818-494f-84c5-2a850acd7779/eventDetail/19896

## Eligibility

Eligible applicants are licensed healthcare facilities, dental clinics, or healthcare clinics providing healthcare services to rural South Dakota citizens. Applicants located in urban areas may apply if proposals directly benefit rural South Dakotans. Applicants must comply with South Dakota state procurement eligibility and must not be debarred or suspended. Contracted or locum tenens providers are not eligible for retention incentives. Providers currently participating in state loan repayment programs with existing service commitments are not eligible for financial retention incentives. Entities ultimately owned or controlled, directly or indirectly, by foreign nationals from China, Iran, North Korea, Russia, Cuba, or Venezuela are not eligible.

## Requirements

Applicants must: (1) Demonstrate capacity to recruit, deploy, and retain a sustainable rural healthcare workforce; (2) Implement five-year service commitment agreements for incentive-supported positions in accordance with CMS guidelines; (3) Provide detailed sustainability plans for workforce gains; (4) Submit robust financial and outcomes reporting (monthly and annual); (5) Adhere to CMS and state compliance, non-discrimination, debarment, and eligibility certifications; (6) Align proposals with Strategic Analysis of South Dakota’s Rural Healthcare Programs 2024; (7) Include a signed State RFP form, executive summary, detailed technical response, and separate cost proposal covering a 10-month project period; (8) Disclose overlapping RHT funding; (9) Not use funding for new construction, salary supplantation, or duplicative/overlapping digital health projects; (10) Ensure all submitted proposals are under 50 pages.

## Required attachments

- Signed State RFP Form (1st page of RFP)
- Executive Summary (1–2 pages)
- Detailed Technical Response to RFP Requirements
- Cost Proposal (separate document)
- Disclosure of other RHT funding (max 2 pages)

## Application package and source documents

- [SD - 2026 - Building a Sustainable Rural Healthcare Workforce: Recruit & Retention](https://www.ruralcarejourney.com/api/documents/9038eac1-e620-4533-bcfe-054a249ac7da/file) — official: https://postingboard.esmsolutions.com/3444a404-3818-494f-84c5-2a850acd7779/eventDetail/19896
- [SD - 2026 - Building a Sustainable Rural Healthcare Workforce: Recruitment and Retention](https://www.ruralcarejourney.com/api/documents/fa88a684-47ac-4889-be9b-bd8ebd400dfe/file) (primary) — official: https://postingboard.esmsolutions.com/3444a404-3818-494f-84c5-2a850acd7779/eventDetail/19896#document
- [SD - 2026 - Posting Board (events) (Matched by solicitation/attachment identifier)](https://www.ruralcarejourney.com/api/documents/2eccedce-86d9-4be6-adb9-996a4326a210/file) — official: https://postingboard.esmsolutions.com/3444a404-3818-494f-84c5-2a850acd7779/events
- [SD - 2026 - Posting Board (Posting Board (event detail copy))](https://www.ruralcarejourney.com/api/documents/5961d250-56ca-487f-a7af-c273b6f0fd82/file) — official: https://sourcing.esmsolutions.com/postingboard/entities/3444a404-3818-494f-84c5-2a850acd7779

More South Dakota RHTP activity: https://www.ruralcarejourney.com/states/sd (markdown: https://www.ruralcarejourney.com/states/sd.md)

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Source: Rural Care Journey (RCJ), https://www.ruralcarejourney.com/opportunities/building-a-sustainable-rural-healthcare-workforce-recruit-retention--cc72211b79 — data as of 2026-09-08.
Cite the RCJ page for the summary and the linked official source for authoritative terms, deadlines, and amounts.