South Dakota has awarded 82 grants to accelerate digital health modernization, strengthen cybersecurity and enhance interoperability across rural and underserved communities. These grants represent $90 million in technology and data modernization funding statewide from the federal Rural Health Transformation initiative.
“We are building a stronger, more connected health care system for people across South Dakota,” said Governor Larry Rhoden. “These investments in technology and tools for rural providers will continue to modernize our health care and make sure more of our citizens can access the very best care while keeping their data secure.”
These awards follow a competitive process in which the state received 144 applications requesting a combined total of $336 million, underscoring strong statewide demand for digital transformation resources. The funded projects reflect strategic alignment with Rural Health Transformation priorities including electronic health record (EHR) modernization, cybersecurity readiness, digital equipment upgrades, interoperability, and technology-based workforce training.
The awards also support the work of Regional Innovation Centers, which serve as regional hubs bringing together healthcare, community, academic, and technology partners to accelerate digital health modernization. These centers deliver hands-on workforce training, cybersecurity guidance, digital care coordination tools, technology testing environments, and innovation capacity to rural and underserved providers.
Major grant-supported initiatives include:
- Digital referral and care coordination platforms connecting healthcare providers with aging‑services organizations to improve post‑discharge recovery and reduce avoidable hospitalizations.
- Statewide cybersecurity and digital resilience programs providing vulnerability assessments, technical support, and workforce training for rural and underserved healthcare organizations.
- Remote patient monitoring, virtual reality clinical training, and aging‑in‑place technologies to support older adults with chronic disease and strengthen rural caregiving networks.
- Advanced digital health innovation labs accelerating technology adoption, simulation-based workforce readiness, and testing of emerging clinical solutions for rural providers statewide.
The Rural Health Transformation initiative will continue providing guidance, collaboration opportunities, and technical assistance to organizations across South Dakota as additional digital modernization funding cycles become available.
For more information about the RHTP, visit: https://www.medicaid.gov/resources-for-states/rural-health.
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