The Minnesota Department of Health (MDH) is offering the Rural Hospital Planning & Transition Grant Program for FY2025 to support small, rural nonprofit hospitals in Minnesota in developing strategic plans or implementing transition projects. These projects aim to enhance or preserve access to essential health services in rural communities. Eligible applicants are non-federal, general acute care hospitals located in rural areas or in communities with fewer than 15,000 people, as defined by federal Medicare regulations. Hospitals must have 50 or fewer beds and be outside the seven-county metropolitan area. Collaborative projects with local health providers and community organizations are encouraged.

The grant will provide up to $45,000 per award, with approximately $300,000 in total funding allocated across an estimated 10 grants. Each applicant must provide at least 50% of the grant amount in matching funds from non-state sources. Funded projects will either develop a strategic plan, involving community needs assessments, feasibility studies, and implementation plans, or execute a transition project aligned with an existing strategic plan. Transition projects may include establishing telehealth systems, integrating hospital-based physician practices, or obtaining critical access hospital status. Funds may not be used for pre-existing expenses, indirect costs, or facility repairs covered by insurance.

Applications are due by December 20, 2024, at 4:30 p.m. CST. Applicants must submit through MDH’s online grants portal and ensure that local Community Health Boards (CHBs) have a 30-day review period to provide feedback on the application. MDH will notify applicants of funding decisions by early March 2025.

Selection criteria include the applicant’s demonstrated understanding of rural health challenges, alignment with community needs, collaboration with local agencies, and a clear budget narrative. A 100-point scoring system will be used to evaluate applications based on organizational capacity, project feasibility, community support, and budget justification. An informational webinar will be held on November 18, 2024, and questions can be directed to MDH until December 13, 2024.