Rural Hospital Planning & Transition Grant Program FY2026 Grant Request for Proposal (RFP)

Summary

The program provides approximately $300,000 to support strategic planning or transition projects by small, nonprofit, rural hospitals in Minnesota to preserve or improve access to health services or to implement service or organizational transitions based on an existing strategic plan. Grants may be used either for (1) developing a strategic plan (which must include a needs assessment, feasibility, and implementation plan) or (2) implementing a transition project such as developing integrated hospital-based physician practices, establishing telehealth or rural health care systems, seeking Critical Access Hospital designation, preserving at-risk service lines, or adopting new models of care. Awards range from $25,000 to $45,000 per applicant or consortium. All applicants must provide at least a 50% match from non-state sources. Application review will prioritize collaborative approaches, health equity, and sustainability for hospital and community health needs.

Eligibility

Eligible applicants are non-federal, general acute care hospitals in Minnesota that are not-for-profit, have 50 or fewer beds (total, not staffed), and are located either (a) in a rural area per federal Medicare regulations or (b) in a non-metropolitan community (outside the seven-county Twin Cities metropolitan area) with fewer than 15,000 residents, based on U.S. Census Bureau statistics. Collaborative consortia or networks of eligible hospitals may apply; grant funds are not transferrable to other entities. Applicants aware of any planned mergers, acquisitions, or changes in legal standing must disclose in their application or as soon as aware.

Requirements Checklist