The Ohio Department of Health (ODH) received more than $200 million in federal funding from the Centers for Medicare and Medicaid Services (CMS) via the Rural Health Transformation (RHT) Fund to mitigate the effects of rural hospital closures and lack of health care access in underserved regions.
During recent testimony before the House Health Committee regarding the Department's FY26-27 budget, ODH Director Bruce Vanderhoff, M.D. outlined the state’s strategic “Year One” roadmap. For our clients, this signals both immediate funding opportunities and a shifting regulatory focus toward community-based care models.
Primary Funding “Buckets” and Initiatives
The ODH is currently prioritizing programs that demonstrate long-term scalability and “whole community” integration.
- School-Based Health Centers: ODH is supporting 15 brick-and-mortar expansions and four new start-ups. These centers are viewed as high-value investments because they provide needed care to many communities, including those in provider shortage areas, and often become financially self-sustaining after approximately two years of initial funding.
- OhioSEE (Vision Outreach): Currently active in 15 high-need counties, this program focuses on establishing vision care and prescriptions for students. While legislators have questioned the initial return on investment ($5M for ~500 students), ODH maintains that early funds are strictly for essential infrastructure.
- Clinical Integration & Maternal Health: The proposed budget includes $92 million for clinical integration. ODH is specifically seeking “whole community networks” to address health-related issues within communities, including maternal care.
- Workforce & Pharmacy Initiatives: ODH is actively soliciting request for proposals (RFPs) for the Rural Health Workforce Pipeline (Pathways Upskilling and Retention) and the RHT Pharmacy Initiative. Interested parties can access the RFPs here.
Next Steps for Your Organization
The ODH is currently in the “infrastructure phase.” Providers interested in the Rural Health Workforce Pipeline or the Pharmacy Initiative should immediately review the open RFPs to meet upcoming deadlines. Reach out to Daphne Kackloudis or a member of Shumaker's Health Law Team for assistance.