Workforce Retention Funding for Critical Access Hospitals and Their Owned and Operated Clinics

The Workforce Retention Funding for Critical Access Hospitals and Their Owned and Operated Clinics is part of North Dakota’s Rural Health Transformation Program (RHTP), an ambitious initiative supported by the U.S. Department of Health and Human Services through CMS. The program offers a significant opportunity to strengthen rural healthcare systems and retain essential workforce professionals within North Dakota’s rural communities. With a mission centered on improving healthcare access and workforce sustainability, this initiative emphasizes the critical role that local healthcare institutions play in community well-being. This funding opportunity provides retention grants specifically tailored to Critical Access Hospitals and their affiliated clinics. The primary aim is to stabilize and support the rural health workforce by enhancing job satisfaction, offering financial and professional incentives, and addressing systemic challenges related to retention. Eligible projects include a wide array of initiatives such as employee retention bonuses, educational awards, professional development programs, housing and transportation assistance, structured mentorship and preceptor stipends, child care support, and wellness initiatives. Notably, financial incentives are subject to a five-year service commitment, and employees must be on the payroll as of the funding announcement date. Proposals must be submitted through the ND Health and Human Services Qualtrics portal and must adhere to clearly defined application components, including a project narrative, budget, action plan, and outlined goals. The application process also includes a structured evaluation mechanism and uses tools such as the provided scoring rubric and budget templates. Applications are due by April 30, 2026, at 5:00 p.m. Central Time, with awards expected to follow after formal review and agreement execution. The performance period will conclude on September 30, 2027, by which time all funds must be fully expended. Approximately $10 million in federal funds is available in the first year, with an estimated 37 awards averaging around $270,000 each. While this figure provides a general benchmark, applicants are allowed to propose higher funding amounts, especially if certain activities cannot be funded in the initial round but may be reconsidered pending a budget review in August 2026. ND HHS reserves the right to adjust proposed budgets based on availability and programmatic alignment. Future funding opportunities under the RHTP umbrella will be released mid-2026, expanding eligibility and focusing on recruitment alongside retention. Reporting obligations for awardees include regular progress updates, reimbursement documentation, and narrative impact stories. These requirements are aligned with CMS guidance, and awardees may need to report for up to five years post-funding. A technical assistance call is scheduled for March 30, 2026, at 3 p.m. CT, and will be recorded and made available online. Supplementary resources, including example service agreements and FAQs, will also be provided to assist applicants in preparing high-quality proposals. Overall, this grant reflects a focused effort to invest in and support the healthcare workforce in rural North Dakota. It not only addresses workforce stability but also promotes professional development, employee wellness, and long-term organizational resilience. With strategic alignment to measurable outcomes such as improved retention rates and reduction of Health Professional Shortage Areas, this funding opportunity represents a transformative moment in North Dakota’s rural health landscape.

Budget alignment with five-year service commitments is essential; ensure staff are employed at time of announcement.