Funding will support technology modernization, chronic disease prevention and workforce sustainability at eligible rural hospitals
PRINCETON, Ill., Aug. 12, 2026 /PRNewswire/ — The Illinois Critical Access Hospital Network (ICAHN) has executed three grant agreements totaling $50,008,264 with the Illinois Department of Healthcare and Family Services as part of the Rural Health Transformation Program (RHTP).
ICAHN is the largest sub awardee of Illinois’ RHTP funding and will administer the funds to Critical Access Hospitals and other eligible non-urban Illinois hospitals located in federally designated rural ZIP codes. The agreements were signed July 31, 2026, take effect August 1, 2026, and continue through June 30, 2027.
The RHTP is a $50 billion federal initiative designed to support the long-term transformation of rural healthcare delivery by advancing value-based care, improving access and strengthening health outcomes.
Illinois was awarded approximately $193 million for the first year of the five-year initiative. ICAHN was identified early on as a key implementation partner in directing these resources to rural hospitals and communities across the state.
“This investment represents an unprecedented opportunity to help rural hospitals build the infrastructure, workforce and innovative care models they need to remain strong for generations to come,” said Tracy Warner, executive director of ICAHN. “Rural hospitals understand the needs of their communities better than anyone. ICAHN is honored to help ensure these resources translate into locally driven, sustainable improvements in access, quality and patient outcomes.”
ICAHN will administer funding through three primary initiatives:
- $31,008,264 for technology transformation
- $14 million for disease prevention and chronic disease programs
- $5 million for hospital workforce investment and long-term workforce sustainability
“ICAHN’s extensive experience supporting rural hospitals and administering complex grant programs makes the organization an important partner in this statewide transformation effort,” said Dani Mendez, RHTP program director at the Illinois Department of Healthcare and Family Services. “Together, we have an opportunity to strengthen rural healthcare delivery, expand access to essential services and support healthier communities throughout Illinois.”
Technology Transformation
The Technology Transformation Initiative will help eligible hospitals improve access, quality, outcomes and cost efficiency through strategic investments in modern healthcare technology.
Before funding is awarded for individual technology projects, ICAHN will coordinate a comprehensive digital readiness and needs assessment for all 78 hospitals eligible to participate. The assessment will evaluate each hospital’s current technology environment and identify investments most likely to support safe, efficient and sustainable healthcare delivery.
Potential areas of investment include:
- Cybersecurity and physical security
- Telehealth expansion
- Electronic health record optimization
- Automation and artificial intelligence
- Data analytics and predictive modeling
- Consumer-facing tools
- Shared infrastructure
- Clinical technologies
ICAHN will also work with vendors to help participating hospitals establish or strengthen minimum cybersecurity standards. Additional first-year activities will include a technology and cybersecurity summit, technical assistance, project oversight and the exploration of group purchasing opportunities that could reduce costs for participating hospitals.
Hospitals will apply for technology funding based on the findings of their individual assessments. Proposed projects will be evaluated for feasibility and alignment with each hospital’s identified needs.
Disease Prevention and Chronic Disease Programs
The Hospital Disease Prevention Grant Program will strengthen the capacity of rural hospitals to implement or expand evidence-based programs addressing chronic disease and other significant community health priorities.
Eligible hospitals will use data from Community Health Needs Assessments, county I-PLANs and other reputable sources to identify local needs and populations at elevated risk. Partnerships with local health departments and other community organizations will be strongly encouraged.
Hospitals may seek support for one-time educational programming, new programs or positions, or the expansion of existing initiatives. Potential activities include nurse-led care coordination, community health worker outreach, patient education, remote monitoring and structured chronic disease prevention and management programs.
Priority will be given to evidence-based initiatives that demonstrate community need, establish measurable benchmarks and involve partnerships that expand reach and impact. Participating hospitals will also complete quarterly and annual reporting to evaluate program effectiveness.
Rural Healthcare Workforce Investment
ICAHN will use a three-pronged workforce strategy to help rural hospitals recruit, educate and retain the healthcare professionals needed to serve their communities.
Funding may support:
- Education awards, including tuition assistance, clinical training, career pathway development and partnerships with educational institutions
- Retention programs, including leadership development, employee engagement, paid mentorships, preceptors, career ladder programs and retention incentives
- Recruitment initiatives, including marketing campaigns, provider stipends, short-term housing assistance, sign-on incentives, apprenticeship programs and efforts to expand specialty services
The first-year goals include providing at least 20 education awards for individuals pursuing high-need healthcare careers, improving employee engagement and retention, and reducing the time required to fill priority positions at participating hospitals.
Rural Illinois continues to experience significant healthcare workforce challenges. Eighty-nine of the state’s 102 counties are designated as Health Professional Shortage Areas, and more than 3.5 million Illinois residents live in areas experiencing provider shortages. Workforce instability can increase patient wait times, limit specialty and emergency services, and force hospitals to rely heavily on costly temporary staffing.
These investments will allow hospitals to develop locally driven strategies that strengthen long-term workforce pipelines and improve continuity of care.
Supporting Sustainable Hospitals and Healthier Communities
ICAHN serves 60 small and rural hospitals that collectively provide essential healthcare services to approximately 1.4 million rural Illinois residents. These communities face persistent challenges related to chronic disease, workforce shortages, transportation, behavioral health access, digital connectivity and economic instability.
Rural hospitals frequently serve as both the primary source of healthcare and a major economic anchor within their communities. Through the RHTP, ICAHN will support new and expanded projects that improve healthcare infrastructure, modernize technology, strengthen the workforce, enhance disease prevention and build sustainable systems of care.
Grant funds will supplement—not replace—existing hospital resources. Participating organizations will be required to demonstrate how their proposed activities expand, enhance or transform current services and create sustainable improvements in healthcare delivery and community health.
ICAHN has more than 23 years of experience administering state, federal and private grants. An established RHTP oversight committee composed of ICAHN staff and representatives from organizations supporting rural healthcare will review funding requests, monitor reports and evaluate the overall impact of the initiatives.
Additional information about hospital eligibility, application processes and implementation timelines will be shared as it becomes available.
About the RHTP
The RHTP in Illinois 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 $193,418,216.21 with 100 percentage funded by CMS/HHS. The contents of this release are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.
About ICAHN
The Illinois Critical Access Hospital Network (ICAHN) advances the strength, sustainability, and transformation of Illinois’ rural hospitals through collaboration, advocacy, and shared solutions that improve performance and community health. Representing all 56 Illinois Critical Access Hospitals (CAHs) designated by the Centers for Medicare & Medicaid Services (CMS) and four other rural hospitals in Illinois, ICAHN is a nationally recognized rural health leader supporting sustainable hospitals, strong communities, and a healthier rural Illinois—Better Together. Visit icahn.org or call 815.875.2999 for more information.
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SOURCE Illinois Critical Access Hospital Network
