Rural Hospital Capital Improvement Grant Program – FY2027

Summary

the hospital and align with strategic/community health plans. Grant activities may only begin after a fully executed agreement. Project dates are June 1, 2027–May 31, 2031. This is a state-funded program (not RHTP-funded); the RFP references RHTP only as an additional resource.

Eligibility

Eligible applicants are non-federal, general acute care hospitals in Minnesota that: (1) are located in a rural area as defined in federal Medicare regulations, or in a community with a population of less than 15,000 according to U.S. Census Bureau data outside the seven-county metropolitan area; (2) have 50 or fewer beds; and (3) are not for profit. Applications may be submitted by individual hospitals, hospital consortia, or networks; each application may be for a distinct project at a single hospital or a project spanning multiple eligible hospitals. All hospitals included in a grant application must independently meet these eligibility criteria. Projects must occur onsite at the hospital facility.

Requirements Checklist

• Applicants must: certify a match of at least 25% of the grant request from non-state sources; propose capital improvement or modernization projects (equipment purchase/installation, construction/remodeling of hospital spaces); demonstrate collaboration with other health entities; show alignment with the hospital's strategic/capital improvement plan, community health needs assessment, and patient satisfaction data; use competitive bidding for contractors; and submit construction/equipment drawings/specifications as applicable. Ineligible expenses include indirect costs, fundraising, lobbying, taxes (except sales tax), bad debts, late fees, or contingency funds.

Required attachments