Rural Healthcare Provider Transition Project

The Rural Healthcare Provider Transition Project (HRSA-25-035) is a funding opportunity provided by the Federal Office of Rural Health Policy (FORHP) under the Health Resources and Services Administration (HRSA). The initiative is designed to assist small rural hospitals and rural health clinics (RHCs) in strengthening their foundational capabilities to transition to a value-based healthcare system. The value-based model aims to enhance quality, efficiency, patient experience, and safety of care for Medicare beneficiaries. This project provides technical assistance (TA) to selected rural healthcare organizations, ensuring they are equipped with the necessary strategies to participate effectively in value-based healthcare programs. The primary objective of the project is to facilitate the transition of small rural hospitals and RHCs by offering structured guidance on quality improvements, financial sustainability, and operational efficiencies. By supporting these healthcare providers, the program aligns with broader federal healthcare goals, particularly those outlined by the Centers for Medicare and Medicaid Services (CMS). The initiative also incorporates strategies to advance health equity, addressing social determinants of health and ensuring underserved populations receive equitable access to quality healthcare services. The funding scope includes a five-year period of performance (September 1, 2025 – August 31, 2030), with an expected total funding of $800,000 per year, culminating in one cooperative agreement. The program requires awardees to develop and implement targeted TA for four to six small rural hospitals or RHCs annually. Activities under the award will focus on financial assessments, quality improvement initiatives, operational strategies, and performance evaluations to track progress towards value-based care. Eligible applicants include public and private institutions of higher education, nonprofit organizations (with or without 501(c)(3) status), for-profit entities (including small businesses), state and local governments, independent school districts, Native American tribal governments and organizations, and other relevant domestic organizations. However, individuals are not eligible to apply. To qualify, selected rural healthcare organizations must meet HRSA's definition of a small rural hospital, which includes non-federal, short-term general acute care hospitals located in designated rural areas and having 49 or fewer available beds. Applicants must submit a comprehensive proposal that includes a project narrative, budget justification, and evidence of past experience in providing TA to rural healthcare organizations. Proposals will be assessed based on need, response, performance reporting, impact, resources and capabilities, and budget justification, with a total of 100 possible points in the review process. Successful applicants will be expected to collaborate with HRSA, rural health stakeholders, and technical experts to implement the proposed TA initiatives effectively. The application deadline is April 14, 2025, at 11:59 p.m. Eastern Time, with an expected award date of August 1, 2025, and a program start date of September 1, 2025. Applications must be submitted via Grants.gov, and applicants are encouraged to secure their SAM.gov and Grants.gov registrations in advance to avoid delays. The funding opportunity does not require cost-sharing or matching contributions. For additional assistance, HRSA provides informational webinars and dedicated support contacts, including program analysts and grants management specialists. Interested applicants are advised to review the full Notice of Funding Opportunity (NOFO) for detailed guidance on submission requirements, evaluation criteria, and compliance expectations​.