The California Department of Health Care Access and Information (HCAI) has completed its first round of competitive awards under the California Rural Health Transformation Program and is beginning to plan the next funding period. At an October 27 meeting of the Rural Health Policy Council, HCAI reported 108 awards across programs supporting regional care partnerships, rural hospitals, maternity care, workforce recruitment and retention, and electronic health record modernization.
Applications sought substantially more funding than was available in some categories. HCAI reported $85.5 million requested for workforce recruitment and retention, compared with a $54 million allocation, and $53.7 million requested for electronic health record modernization, compared with $11.65 million.
HCAI said it is awaiting CMS approval and its Budget Period 2 award amount. The department tentatively expects to release the next round of applications in spring 2027, make selections during the spring and summer, and issue funding in the fall. The schedule and funding opportunities remain subject to approval and available funding.
Council members and public commenters urged HCAI to provide earlier guidance, clearer expectations, more time to form partnerships, and hands-on help for applicants, particularly smaller rural organizations with limited administrative capacity. HCAI said it is considering earlier information about future grant opportunities and is establishing a Rural Technical Assistance Center to support rural partners.
Source: CalRHT Program Updates
