# Rural Hospital Capital Improvement Grant Program – FY2027 Minnesota Statutes, Section 144.148 authorizes the Commissioner of Health to award grants to eligible rural hospitals for modernization projects to update, remodel, or replace aging hospital facilities and equipment necessary to maintain hospital operations. The FY2027 round will distribute an estimated $1,755,000 in total funding, issuing approximately 18 awards of $45,000–$125,000 each. Applicants must provide at least a 25% match from non-state sources. Proposed projects must involve the purchase/installation of equipment (including EHRs) or construction work on hospital spaces, with an emphasis on health equity, strategic collaboration, and long-term financial stability. Eligible applicants are non-federal, general acute care, not-for-profit hospitals in rural areas or towns under 15,000 population (outside the seven-county metro area) with 50 or fewer beds. Projects must occur onsite at 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. ## Key facts - Status: Open - Type: RFP - Issued by: Minnesota Department of Health, Office of Rural Health and Primary Care (ORHPC) (Minnesota) - Posted: 2026-10-19 - Application due: 2026-12-11 - Funding: $45,000 – $125,000 - Eligible applicants: Rural Hospital, Non-profit Hospital, Hospital Consortium - How to apply: ORHPC Online Grants Portal: https://www.grantinterface.com/Home/Logon?urlkey=mdh - Funding source: state-funded, not RHTP - Official source: https://www.health.state.mn.us/facilities/ruralhealth/funding/grants/docs/rhcirfp.pdf ## 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 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 - Construction, remodeling, and/or equipment drawings or specifications (if applicable) - Evidence of competitive bidding for contractors (if applicable) - Organizational background and capacity statement - Project narrative - Detailed budget and budget narrative - Conflict of Interest Disclosure ## Application package and source documents - [MN - 2026 - Rural Hospital Capital Improvement Grant Program FY2027 Grant Request for Proposal (RFP) (FY2027 Grant Request for Proposal (RFP))](https://www.ruralcarejourney.com/api/documents/4473156f-928d-4650-abcc-9290eabd799d/file) (primary) — official: https://www.health.state.mn.us/facilities/ruralhealth/funding/grants/docs/rhcirfp.pdf - [MN - 2026 - Request for Proposal: Rural Hospital Capital Improvement Grant Program (MDH RFP posting notice (email))](https://www.ruralcarejourney.com/api/documents/6adde351-6522-4f93-b932-644481e179d6/file) More Minnesota RHTP activity: https://www.ruralcarejourney.com/states/mn (markdown: https://www.ruralcarejourney.com/states/mn.md) --- Source: Rural Care Journey (RCJ), https://www.ruralcarejourney.com/opportunities/rural-hospital-capital-improvement-grant-program-fy2027--b08617812f — data as of 2026-10-20. Cite the RCJ page for the summary and the linked official source for authoritative terms, deadlines, and amounts.