FOR IMMEDIATE RELEASE

November 10, 2026

Contact: Josie Harms

Gov. Rhoden Announces Year Two Rural Health Transformation Funding

PIERRE, S.D. – Governor Larry Rhoden and the South Dakota Department of Health (DOH) announced $187.7 million in Year Two funding through South Dakota's Rural Health Transformation (RHT) Program, a five-year initiative focused on strengthening health care access, workforce capacity, technology, and long-term sustainability for rural and frontier communities across the state. 

"Strong rural communities depend on strong rural health care," said Governor Larry Rhoden. "South Dakotans shouldn’t have to choose between strong health care opportunities and their rural way of life, so these investments will allow them to access quality care close to home. These resources will support healthcare providers, strengthen local services, and help ensure a healthier future for generations to come."

Earlier this year, Governor Rhoden signed HB 1044, which appropriated funding for the RHT Program. In Year One, South Dakota committed every dollar of its $189.5 million Rural Health Transformation award by the federal deadline, through 234 agreements supporting healthcare organizations and communities across the state. Additional details on funded projects and communities can be explored through the program's "Where Investment Meets Impact" interactive map.

“The Trump Administration’s $50 billion Rural Health Transformation Program gives states the resources and flexibility to bring care closer to home and build stronger, more sustainable health care systems for their rural communities,” said CMS Administrator Dr. Mehmet Oz. “As the program enters its second year, this next round of funding will help South Dakota build on the progress made in year one and continue working toward lasting improvements in access, quality, and health outcomes for rural communities.”

The Year Two funding will support continued implementation of 10 statewide initiatives aligned with the state's RHT strategy, which focuses on four key areas:

• Connecting technology and data to improve interoperability, care coordination, and digital infrastructure;
• Advancing the rural healthcare workforce through recruitment, training, retention, and workforce development initiatives;
• Keeping healthcare local and strong by expanding access to services, including maternal health, behavioral health, and chronic disease management; and 
• Transforming systems for sustainability through innovative care models and long-term healthcare system improvements. 

"This program continues to reflect what can be achieved when healthcare partners across South Dakota come together around a shared vision," said DOH Secretary Melissa Magstadt. "Through these investments, we are helping communities strengthen healthcare services, support the workforce, and create lasting improvements that will benefit South Dakotans for years to come." 

You can find more information on Rural Health Transformation efforts in South Dakota here.

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This press release is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of the Rural Health Transformation Program, a financial assistance award totaling $377,131,053.07 with 100% funded by CMS/HHS. The contents are those of the State of South Dakota and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.