Governor Larry Rhoden announced on May 21 that South Dakota has awarded the first contracts under its Rural Health Transformation initiative, a statewide effort aimed at strengthening rural healthcare systems and improving access to care. The announcement includes awards for managing large-scale investments in digital health, business management, and chronic disease initiatives.
The initiative is significant because it seeks to modernize rural healthcare through strategic investments and cross-agency collaboration. Officials say these efforts are intended to build a more resilient and sustainable health system across South Dakota's rural communities.
"I am committed to keeping South Dakota strong, safe, and free, and supporting rural health is a key component of that vision," said Governor Larry Rhoden. "The Rural Health Transformation program is already running full steam ahead, delivering results for South Dakotans. I am grateful for my Department of Health and their hard work throughout the process."
Melissa Magstadt, Secretary of Health, said: "The Rural Health Transformation initiative continues to move forward in South Dakota from planning into action. These awards put the right support in place to manage a large-scale investment in digital health and business management to ensure the initiative is implemented efficiently and effectively across South Dakota."
North Star Solutions, LLC of Sioux Falls was awarded $1,462,802 as the Digital Health Modernization and Technology Grant Program Management Consultant. The company will oversee implementation of nearly $480 million in grants by managing applications and ensuring compliance so that communities benefit statewide.
Black Hills Special Services Cooperative received an award for project management support on chronic disease initiatives; their team will coordinate with funded entities such as health organizations and schools implementing evidence-based interventions.
Additionally, Business Concepts & Applications (BCA) of Pierre secured a two-year contract worth $500,000 from the Department of Social Services for project management services related to Medicaid provider quality grants as well as primary accountable care transformation efforts.
Officials said updates about funding opportunities are available at ruralhealthtransformation.sd.gov along with resources such as timelines and frequently asked questions.
According to state officials, these contracts represent an important step toward building connected healthcare infrastructure across rural areas through innovative models designed specifically for local needs.
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