How the Rural Health Transformation Program Is Funding Remote Patient Monitoring

The Rural Health Transformation Program is putting $50 billion into rural health care over five years, and remote patient monitoring shows up in almost every state's plan. For rural hospitals, clinics and the companies that support them, it's a rare source of money for the equipment and startup costs that usually stall an RPM program.

Here's how the money moves, what states are funding, and what to get right if you're building a rural RPM program with it.

What the program is

Congress created the Rural Health Transformation Program in H.R. 1, signed July 4, 2025. It provides $50 billion to states over federal fiscal years 2026 through 2030. CMS announced awards for all 50 states in December 2025, and states began rolling out their first-year programs in 2026.

The funds go to states, not directly to providers. Each state decides how to spend its share, usually through grants, procurements and partnerships that rural hospitals, clinics and health systems apply for.

How much is going to remote monitoring

A September 2026 analysis by the Alliance for Connected Care found that nearly every state included remote monitoring in its plan. In year one, 22 states announced or awarded about $240 million in funding specifically for remote monitoring. Another 35 states announced broader opportunities, totaling more than $2.4 billion, that list remote monitoring as an allowable use.

A few examples from that analysis:

• Nebraska allocated more than $27 million of year-one funding to providers for remote monitoring.
• Florida set aside $14 million for a remote patient telemonitoring initiative that gives rural patients with hypertension, diabetes, heart failure or COPD connected devices such as blood pressure cuffs and glucose meters.
• Arkansas committed $14 million to remote monitoring, mainly for one-time equipment and startup costs.
• Texas plans an estimated $150 million over five years to raise hospital participation in remote monitoring.

Why rural RPM is harder, and what helps

Rural patients often have the most to gain from remote monitoring: long drives to the clinic, fewer specialists nearby and higher rates of chronic disease. They also expose every weak spot in a device program.

• Coverage. Broadband is spotty, and one carrier's signal may not reach every home. Cellular devices that can switch between networks send readings from more places than Wi-Fi or single-carrier devices.
• Setup. Many rural Medicare patients don't have a smartphone, or don't want to pair one. Devices that work out of the box avoid the setup calls that eat up staff time.
• Distance. When a device fails, the replacement has to reach the patient by mail, quickly. Shipping directly to patients, and handling returns the same way, keeps readings flowing.
• Staffing. Rural clinics rarely have spare staff to manage inventory and shipping. Handing device logistics to a partner keeps clinical staff on patient care.

Plan for what happens after the grant

Most state funding covers startup costs: devices, staffing and training in the first years. Programs still need a way to pay for monitoring once the grant runs out, usually through Medicare, Medicaid or commercial reimbursement.

That deserves close attention right now. The proposed 2027 Medicare Physician Fee Schedule would change how RPM is billed, and the Alliance for Connected Care has warned that the changes could make state investments harder to sustain. CMS is expected to release the final rule in early November.

A few practical steps:

1. Read your state's Rural Health Transformation plan and find the office running it.
2. Watch the state's grant and procurement announcements, since many are issued in rounds.
3. Tie your program to the measures your state will report, such as readmissions or blood pressure control.
4. Build a reimbursement plan for after the grant period, including any Medicaid coverage your state is adding.

FQHCs and rural health clinics can also bill Medicare for RPM directly. See our post on RPM for FQHCs and RHCs.

How Continua helps rural programs

Continua Systems supplies 4G cellular blood pressure monitors, glucose meters, weight scales and pulse oximeters that connect automatically to AT&T, T-Mobile or Verizon. We ship directly to patients, handle returns and replacements, and deliver readings to your platform through our API.

Contact us to talk through a rural program.

Frequently asked questions

What is the Rural Health Transformation Program, and can it fund RPM?

The Rural Health Transformation Program is a federal program that provides $50 billion to states over five years, 2026 through 2030, to improve rural health care. CMS announced awards for all 50 states in December 2025, and state plans include expanding telehealth, remote patient monitoring and other digital tools.

The money goes to states, not directly to providers. Each state decides how to use its share, and rural hospitals, clinics and health systems typically reach it through state programs, grants or partnerships. If you serve rural patients, read your state's plan and contact the office running it.

Source for state figures: Alliance for Connected Care, States Are Investing Billions in Remote Monitoring Through RHTP (September 2026). This post is general information, not billing or legal advice.