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State procurement strategies for rural health transformation

A new era for rural health

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Meeting the demands of the Rural Health Transformation Program

The Federal Government Public Law 119-21 provides $50 billion in funding to states through the Rural Health Transformation Program (RHTP). It presents a unique opportunity for states to revolutionize healthcare quality, access, and outcomes in rural communities. However, states face significant challenges in navigating its compressed timelines and complex procurement regulations.

In this paper, we provide a clear roadmap to help states meet these compressed timelines, with strategies for rapid, effective, and compliant procurement development and subaward decisions.

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State procurement strategies for rural health transformation

The success of rural healthcare transformation hinges on the timely and effective execution of numerous program elements, with well-structured procurement strategies forming a critical backbone.

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The three pillars of RHTP procurement success

To help navigate RHTP requirements and maximize impact, we detail three interdependent activity pillars that provide a framework for states to help achieve compliance, efficiency, and ultimately, sustainable rural health transformation.

1

Proactive planning and governance

Most states will need to bolster legal and procurement capacity and establish collaborative procurement guidance, and develop a strategic procurement roadmap.

2

Agile and compliant sourcing

States must select and execute sourcing methods that are both efficient and fully compliant with federal guidelines, and leverage cooperative purchasing partnerships.

3

Strategic and outcome-focused contracting

Success demands solicitations and contracts that not only comply with regulations but also incentivize vendor performance, drive innovation, and foster long-term sustainability.

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