Mississippi has been busy putting its Rural Health Transformation Program (RHTP) funding to work!
In just over a month, the state announced 227 awards totaling approximately $136.7 million. That’s a significant investment in rural healthcare, and we’re excited to see what these projects could mean for hospitals and the communities that depend on them.
And there’s more news! On November 9, Mississippi received another $204.7 million in federal funding for Year 2 of the program, giving the state additional resources to continue its rural healthcare efforts.
What caught our attention is that Mississippi isn’t just looking at how to expand healthcare services today. Several investments also aim to help rural hospitals strengthen their operations and prepare for the years ahead.
Let’s take a closer look at how Mississippi is putting this funding to work and what rural hospitals can expect next.
Where Does Mississippi Stand With RHTP Funding?
Mississippi received approximately $205.9 million in first-year funding through the Rural Health Transformation Program, and the state has already announced some significant investments.
The first round of awards came on September 14, when Governor Tate Reeves announced $104.1 million for 167 projects. Just over a month later, on October 21, Mississippi announced another 60 awards totaling $32.6 million.
Together, that’s 227 awards totaling approximately $136.7 million for healthcare projects across the state.
October 30 marked the federal deadline for states to obligate their first-year RHTP dollars formally. While Mississippi has announced substantial funding, updated federal reporting is still needed to confirm how much of its full allocation was obligated by that deadline.
And there’s more funding on the way! On November 9, the Centers for Medicare & Medicaid Services (CMS) announced that Mississippi would receive another $204.7 million for Year 2.
That brings Mississippi’s combined federal allocations for the first two years to approximately $410.6 million. This is the total funding awarded to the state, not the amount already distributed to individual hospitals or projects.
With two years of federal funding now allocated, Mississippi has an opportunity to continue supporting the projects already underway and make additional investments in rural healthcare.
How Is Mississippi Using Its Rural Health Transformation Funding?
Mississippi’s first two rounds of awards cover quite a bit of ground. Some projects focus on growing the healthcare workforce, while others will help hospitals update aging systems or expand services patients have struggled to access.
Here’s a closer look at three areas receiving support.
Building a Stronger Rural Healthcare Workforce
Finding and keeping healthcare professionals is a challenge many rural hospitals know all too well. Mississippi is putting more than $19 million toward workforce development, with an emphasis on helping people enter the healthcare field and grow their careers.
Here’s where some of that funding is going:
- $9 million for Earn While You Learn: Helping students and current healthcare employees earn credentials while getting paid.
- $6.2 million for recruitment and retention: Supporting efforts to attract and keep healthcare professionals in rural communities.
- $3 million for clinical training: Giving more students opportunities to gain hands-on experience under experienced clinicians.
- $1 million for early career exposure: Introducing younger students to healthcare careers.
We especially love seeing opportunities for people who already call these communities home. Helping residents build healthcare careers could make a real difference for hospitals working to fill positions and keep talented employees close to home.
Expanding Access to Behavioral Health Services
Finding specialized mental health services can be difficult in rural areas, particularly when someone is experiencing a crisis.
To help address this, Mississippi awarded approximately $13.3 million to establish three psychiatric emergency treatment units, known as EmPATH units.
These units are designed to give patients a dedicated place to receive psychiatric evaluation, treatment, and stabilization rather than spending extended periods waiting in a traditional emergency department.
The three projects will be located at:
- Merit Health Central in Jackson
- Memorial Hospital at Gulfport
- University of Mississippi Medical Center’s Greenwood Hospital
While these units won’t be in every rural community, they could offer additional treatment and referral options for surrounding hospitals with limited behavioral health resources. We’ll be interested to see how those relationships develop as the units become operational.
Helping Rural Hospitals Make Better Use of Technology and Data
Not every improvement happens at the bedside. Some of Mississippi’s RHTP funding is helping hospitals update the systems they depend on to manage their daily operations.
Here are three examples from the state’s September awards:
- Neshoba County General Hospital ($255,000): Developing a data warehouse and analytics tools to better understand costs, productivity, quality, and service-line performance.
- University of Mississippi Medical Center (approximately $826,000): Building a shared analytics and reporting platform for participating rural hospitals.
- Tippah County Hospital ($400,000): Updating financial and administrative technology.
These investments are worth paying attention to because rural hospitals already have a tremendous amount of valuable information in their systems. The challenge is often finding the time and tools to make sense of it all.
For a hospital trying to understand why costs are rising in a particular department or whether a new service is financially sustainable, having reliable information in one place can make those conversations much easier.
And when staff can spend less time tracking down numbers, they have more time to figure out what those numbers are telling them.
Are There Still RHTP Funding Opportunities Available in Mississippi?
Yes! Even though the October 30 federal deadline for states to obligate their first-year RHTP funding has passed, Mississippi still has two grant opportunities accepting applications in November.
Here’s what rural healthcare organizations should know.
Innovative Pilot Program Grant
Applications are due November 16, 2026.
Have an idea for improving healthcare in your rural community but need funding to get it off the ground? Mississippi’s Innovative Pilot Program is designed to support that.
The state has set aside about $16 million for projects that test new ways to address rural healthcare needs, with individual awards of up to $2 million.
For example, a rural hospital might partner with local clinics to bring prenatal services closer to home or work with a school district to make healthcare more accessible to students.
The goal is to see which approaches actually work, how they benefit rural residents, and whether they could be sustained or expanded in the future.
Electronic Health Records (EHR) Replacement Grant
Applications are due November 23, 2026.
For smaller rural healthcare and mental health organizations still working with outdated EHR systems, this grant could help make a much-needed upgrade possible.
Funding is available to replace older systems with technology that makes it easier to share patient information, pull reports, and keep everyone involved in a patient’s care on the same page.
Both opportunities are worth exploring for organizations with projects that align with Mississippi’s priorities.
And if you’re wondering how applications can still be open after the October 30 deadline, there’s an important distinction. States had to formally obligate their first-year federal funding by that date, but individual grant applications and recipient selections can continue afterward, once funding has been appropriately committed.
You can find eligibility requirements, application instructions, and other updates on the official Mississippi RHTP funding page.
What's Next for Mississippi's RHTP in Year 2?
As of November 9th, Mississippi now knows how much federal funding it will have for its second year!
CMS announced that Mississippi will receive approximately $204.7 million for Year 2, which began October 31, 2026.
That’s about $1.2 million less than the state received in Year 1, but Mississippi’s allocation is still above the $200 million average across all 50 states.
Why Did Mississippi's Funding Change?
RHTP funding isn’t automatically the same each year. Every participating state receives $100 million in annual baseline funding, while the remaining portion is determined using several factors.
Starting in Year 2, CMS also considers how states are progressing with their approved plans. That includes whether they’ve started their projects, reached important milestones, and established ways to measure results.
While Mississippi received slightly less funding this year, CMS hasn’t identified a single reason for the difference. Annual allocations can change for several reasons, so a smaller award doesn’t necessarily mean a state is falling behind.
What Should Rural Hospitals Watch For?
Now that Mississippi’s Year 2 funding is confirmed, the next question is how the state plans to use it.
There are a few things worth following:
- New grant opportunities: Will Mississippi open additional applications for rural hospitals and healthcare organizations?
- Progress on existing projects: What are hospitals learning as they begin using their Year 1 awards?
- Future funding decisions: How will Mississippi’s progress influence its funding in the remaining years of the program?
The $204.7 million announcement confirms Mississippi’s federal allocation for Year 2. It doesn’t mean that amount has already been awarded to individual hospitals.
We’ll be watching for more details from the state about how the funding will be distributed and what opportunities may become available.
What Should Mississippi Rural Hospitals Be Thinking About Next?
Whether your hospital has received an award or is preparing for a future opportunity, important work can happen before a project even gets off the ground.
Here are three things we’d encourage hospital teams to think through.
Know Where You're Starting
Before making changes, take a good look at what’s happening today.
If your hospital is investing in new technology, for example, how much time does your team currently spend pulling reports or tracking down information? If you’re expanding a service, how many patients are currently traveling elsewhere to receive it?
Those numbers give you something to compare against later. Without a baseline, it can be difficult to tell whether an investment is delivering the improvements you hoped for.
Plan for What Comes After the Grant
Grant funding can help hospitals tackle projects that might otherwise be too expensive. But what happens when the initial funding runs out?
New systems may come with ongoing costs, and expanded services need staff and resources to keep them running.
It’s worth having those conversations early, even if the answers aren’t completely clear yet. Understanding what a project will cost to maintain can help hospitals make better decisions about how to support it over time.
Bring Your Team Into the Process
The people doing the work every day often have the clearest picture of what’s working and what needs attention. But having leadership involved is just as important.
Take a hospital working to reduce claim denials. Revenue cycle employees may know exactly where problems keep showing up, while an engaged CFO can help remove roadblocks, bring departments together, and make sure the team has what it needs to make changes.
Having both perspectives at the table can make a big difference.
We’ve seen how valuable that collaboration can be when hospitals use their data to start conversations rather than assign blame. When leadership and staff work through challenges together, they’re better positioned to make improvements that stick.
Looking Ahead: Making Mississippi's RHTP Investments Count
Mississippi has a busy few years ahead, and with Year 2 funding now confirmed, there’s even more opportunity to build on the work already underway.
We’re interested in what hospitals will learn as they put their funding to use. Some projects may help teams work more efficiently, while others could make it easier for patients to receive services closer to home. We hope those early successes give hospitals something they can continue building on long after the initial funding is spent.
At REDi Health, we’re fortunate to work alongside rural healthcare organizations that are finding creative ways to serve their communities, often with limited staff and resources. We know how much work goes into making these initiatives successful, and we’re always happy to lend an extra set of hands with data, financial opportunities, or progress measurement.
If your hospital is putting RHTP funding to work or planning its next steps, we’d love to hear what you’re working on.
