Arizona Rural Health Transformation Program (RHTP)

Better healthcare. Closer to home.

Arizona is investing $167 million in federal funding to transform healthcare in rural communities across the state — expanding access, training more providers, and strengthening the health systems that more than 786,000 Arizonans depend on every day.

Program Runs: December 2025 – October 2030

Lead Agency: Arizona Health Care Cost Containment System (AHCCCS)

Are you a....

  • Rural Provider, hospital or community health organization?
    Grant opportunities are coming Spring 2026. All awards will be finalized by Summer 2026.
  • Tribal Nation or Health Organization?
    You are a priority partner. Dedicated support, technical assistance, and grant opportunities will begin Spring 2026.
  • Prospective vendor, or contractor?
    Limited procurement opportunities are coming Spring 2026.
  • Member of the Public?
    Learn how this program will improve health care in rural Arizona below.

The Problem We’re Solving

More than 786,000 Arizonans (11% of total population) live in rural areas where healthcare is critically strained and hard to reach.

  • The nearest hospital is, on average, 20 miles away
  • Some rural areas have just one behavioral health provider for every 50,000 people
  • Rural residents earn $24,000 less than urban Arizonans and suffer higher rates of unemployment, chronic disease, preventable illness and injuries, and death
  • Nearly half of rural women must travel more than 30 minutes for maternal care and American Indian women face maternal mortality rates 7x higher than the state average

This program is Arizona’s most significant investment in rural health in a generation. It is designed to improve healthcare access, build a stronger rural health workforce, and create lasting change.

What We’re Funding

Arizona’s program is built around four areas of investment. Funding flows to rural hospitals, clinics, Tribal health programs, universities, nonprofits, and community organizations working in these areas.

Arizona’s RHTP proposal focuses on four strategic goals:

  1. Rural Health Workforce Development
  2. Priority Health Initiatives
  3. Expanding Access to Care
  4. Strengthening Rural Health Systems

These efforts are designed to improve health outcomes while making care more affordable and reliable.

Building the Rural Health Workforce

$47 million per year | Led by the Arizona Office of Economic Opportunity (OEO)

Too many rural communities can’t find or keep doctors, nurses, and behavioral health providers. We’re fixing that through the Rural Health Workforce Training and Development Program by funding financial incentives and supports to recruit and retain medical staff, as well as expansions to rural health education and training programs, residencies, career pipelines starting in K-12.

Tackling the Biggest Health Challenges

$27 million per year | Led by the Arizona Department of Health Services (ADHS) and AHCCCS

Targeted public health grants address behavioral health and substance use disorder (SUDs), maternal-fetal health, and chronic disease prevention and management — the issues hitting rural Arizonans hardest.

Expanding Access to Care

$38 million per year | Led by AHCCCS

We’re meeting patients where they are — through telehealth, mobile clinics, and innovative care models that bring services to communities instead of making communities travel long distances to receive them.

Strengthening Rural Health Systems

$38 million per year | Led by AHCCCS

Rural hospitals and clinics often operate on razor-thin margins. We’re helping providers share costs, modernize operations, and build the financial stability to serve their communities long-term.

Who We’re Working With

This program only works through partnership. Arizona is working closely with:

  • 22 Federally recognized Tribal Nations — through government-to-government consultations, not checkbox engagement.
  • Critical Access Hospitals and rural clinics across all rural counties
  • Public Arizona universities and community colleges building the next generation of rural providers
  • Local and county health departments and community-based organizations
  • Arizona's Governor's Office, AHCCCS, OEO, and ADHS — coordinating as one team
The image contains two graphic with the following information. Arizona Rural Health Transformation Program (RHTP) Implementation Timeline for AHCCCS: In 2025, the Centers for Medicare & Medicaid Services (CMS) released the RHTP Notice of Funding Opportunity (NOFO), a $50B, 5-year grant opportunity for rural America. AHCCCS conducted stakeholder engagement, collecting feedback and providing updates on the Arizona RHTP application and next steps for CMS submission. AHCCCS submitted the AZ RHTP application to CMS on November 5, 2025. In December 2025, CMS issued the Year 1 Notice of Award (NOA) and requested budget clarifications. In 2026, CMS and AHCCCS collaborated to finalize the Year 1 program budget in January, and CMS approved the Year 1 budget on February 24, 2026. Upcoming activities for Budget Year 1 include implementation kickoff and grant funding between March and April 2026 across AHCCCS, the Office of Economic Opportunity (OEO), and the Arizona Department of Health Services (ADHS), along with stakeholder engagement and technical assistance. Grant funding opportunities will be posted beginning in April 2026, with all opportunities posted by May 2026. In summer 2026, grant applications will be reviewed, scored, and awarded by August, and AHCCCS will submit the Year 2 RHTP funding continuation application to CMS. In fall 2026, all Year 1 funding will be fully obligated by October 30, 2026, grantees will have until October 2027 to expend funds, and CMS will issue the Year 2 NOA. For Budget Years 2 through 5 (FFY 2027–FFY 2030), program implementation and scaling will continue statewide across all program areas, with ongoing funding subject to CMS annual reviews and budget approvals.

Funding Opportunities

How Arizona Is Distributing RHTP Funds

Beginning in Spring 2026, Arizona will use a range of competitive and direct award grant programs to distribute RHTP funding to organizations doing work on the ground.

Types of Funding Mechanisms

  • Requests for Grant Applications (RGAs) — competitive, open solicitations for eligible organizations
  • Cooperative Agreements — collaborative funding arrangements for larger, multi-year partnerships
  • Intergovernmental Agreements (IGAs) — formal agreements with Tribal governments, local health departments, and other state agencies
  • Contract Amendments — modifications to existing agreements with managed care plans and established providers
  • Multi-Tier Grants — we’re designing flexible awards with grant tiers as small as $10,000 and up so organizations of all sizes can apply.

Technical Assistance & Support

Technical assistance will be available to help smaller organizations apply and administer funds. Dedicated technical assistance for Tribal Nations and tribal health organizations will also be available.

For Vendors and Contractors

All RHTP contracts and subawards include applicable federal and state requirements. Administrative costs for all funds are capped at 10% per federal requirements, no exceptions. Vendors providing products and services to grantees should be prepared meet federal audit standards (2 CFR Part 200, Single Audit requirements for entities expending over $750,000 in federal funds).

Active Solicitations (Coming Spring 2026)

View the AHCCCS Grants Initiatives page.

Frequently Asked Questions

Who can receive funding?
Funding goes to organizations, not individuals. This includes local governments, hospitals, universities, community colleges, community health centers, nonprofits, rural health associations and consortiums, federally recognized Tribes, and more. Specific eligiblity wil be listed with each grant opportunity.

Are Tribal communities included?
Yes — as a top priority. Ongoing government-to-government Tribal Consultation with 22 federally recognized Tribes in Arizona will continue throughout the five-year program. Prospective grant applicants are strongly encouraged to demonstrate meaningful partnership and engagement with Tribal health organizations across all four investment areas.

How do I know if my organization qualifies?
Check back when applications open — eligibility criteria will be clearly listed. When in doubt, reach out. We'd rather help you figure out if you're eligible than have you not apply.

Is this just for healthcare providers?
No. Universities, community colleges, nonprofits, social service organizations, and Tribal and local governments are all potential partners and applicants depending on the program area.

When will money actually start flowing?
Year 1 funding is targeted to be fully committed by October 2026. Grantee’s have until October 30, 2027 to spend funds.

RHTP Steering Committee

Coming Summer 2026

The RHTP Steering Committee will be established by Governor Hobbs to provide executive recommendations on implementation and program direction on an ongoing basis for the full five-year program. It will include senior leaders from AHCCCS, ADHS, OEO, the Governor’s Office, and rural health stakeholders.

Meeting schedules, members, and materials will be posted here once the committee is active.

Staying Connected

Arizona is committed to transparency and collaboration throughout RHTP implementation, including:

  • Ongoing stakeholder engagement, with listening sessions, advisory groups, and regular updates
  • Community-centered implementation, including programs led by agencies with strong rural experience
  • Clear accountability, encompassing regular reporting and public updates on progress

Resources

Disclaimer: This website is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $166,988,955,92 with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor endorsement, by CMS/HHS, or the U.S. Government.