Rural Health Care Delivery Fund (RHCDF) Stabilization Grants

The Rural Health Care Delivery Fund (RHCDF) Stabilization Grants program is administered by the New Mexico Health Care Authority (HCA) and aims to support the stability and continuity of health care services across rural communities in New Mexico. Backed by Senate Bill 1 from the 2025 1st Special Session, the program is a strategic initiative focused on addressing the operational challenges faced by rural Medicaid-enrolled health care providers and facilities. These challenges include service reductions and closures, rising costs, and difficulty maintaining essential care in medically underserved areas. The fund is designed to support organizations that serve rural counties with populations under 100,000, areas designated as rural high-needs Health Professional Shortage Areas (HPSAs), and tribally operated healthcare facilities. All applicants must be actively enrolled as New Mexico Medicaid providers and must be delivering Medicaid-reimbursable services to eligible patients. The RHCDF’s stabilization initiative provides a total of $50 million in available funding for the 2026 cycle. Grant awards will be determined based on an applicant’s demonstrated financial need and projected operational losses. The program will fund operational and stabilization-related costs necessary to continue service delivery, such as staffing expenses, routine health service operations, and losses not covered by recognized revenue. However, funding cannot be used for marketing, new service lines, capacity expansion, facility construction, technology upgrades, or operations outside New Mexico. All funded services must remain Medicaid-eligible, and awardees must maintain separate financial tracking if also receiving federal Rural Health Transformation funds. To qualify, applicants must meet stringent eligibility criteria including proper state licensure, active Medicaid enrollment, and proof of serving rural or tribal communities in New Mexico. Additional documentation is required if applicants are located in counties with areas that are not designated as rural. Eligible applicants must also commit to operating continuously for the duration of the grant period and providing adequate cost data aligned with HCA regulations. Moreover, applicants eligible for New Mexico Medicaid’s Presumptive Eligibility (PE) program must certify at least one staff member as a Presumptive Eligibility Determiner (PED) within 120 days of receiving funds. The application opened on March 16, 2026, and submissions are due by April 19, 2026, at 11:59pm MST. Technical assistance webinars were scheduled for March 17 and March 20, offering guidance on the application process and budgeting. Oral presentations may be requested by HCA between May 21–22, 2026. Final decisions will be issued between May 30 and June 14, 2026, with the acceptance deadline set for June 30, 2026. The funding period officially begins August 1, 2026, and runs through June 30, 2029. Each awarded entity must submit quarterly and annual reports, undergo performance audits, and demonstrate service stabilization within six months post-contract. Payments are distributed monthly as retrospective reimbursements and any unspent funds must be returned by the end of the grant period. The application is submitted through the HCA’s Submittable portal and includes a work plan, detailed budget, financial documents, and narrative responses regarding the applicant’s operational readiness and community impact. The evaluation process weighs alignment with RHCDF goals, evidence of performance and outcomes, community impact, financial justification, and long-term sustainability. Special consideration is given to organizations serving priority populations such as children in the welfare system, unhoused individuals, and tribal communities. Through this initiative, the RHCDF seeks to strengthen the health care infrastructure in New Mexico’s rural regions, ensuring continued access to critical health services and improving health outcomes for underserved populations.