# Rural Health Transformation Program: Telehealth Equipment > Can Rural Health Transformation Program funds buy telehealth equipment? How RHTP money reaches clinics, what is ineligible, and an equipment checklist. [Home](/en) / [Resources](/en/blog) / RHTP telehealth guide Funding guide · Updated October 6, 2026 # Rural Health Transformation Program: Telehealth Equipment Guide **Can Rural Health Transformation Program (RHTP) funds buy telehealth equipment?** Often, yes: telehealth and remote monitoring are statutory uses, and several states already fund exam devices, cameras and computers through subgrants. But the money flows from CMS to states and then to grantees, so **each state program decides what is eligible**. This guide explains the rules, the exclusions and how to document an equipment line item. [Request a grant-ready quote](#rhtp-quote) [View the telehealth kit](/en/telehealth-kit) ## RHTP at a glance Legal basisSec. 71401, P.L. 119-21 Total$50B, FY2026–2030 Per year$10B First-year awards$147M–$281M per state Who receives itStates, then subgrantees Budget Period 2Begins Oct 31, 2026 MedConnect is not affiliated with CMS or any state RHTP office. Eligibility is set by each state program and documented by the grantee. ## The short answer Telehealth equipment can be an eligible expense under the Rural Health Transformation Program, but you do not apply to CMS for it. CMS awards each state a cooperative agreement; the state then funds hospitals, clinics, community sites and contractors through its own subgrants, RFPs and contracts. Whether a vital signs monitor, exam camera or telehealth cart is allowable for *your* project depends on the state solicitation you apply to, its budget categories and the federal cost rules attached to the money. In practice, rural hospitals, critical access hospitals (CAHs), rural health clinics (RHCs), FQHCs, pharmacies, schools and libraries are the grantees. Vendors supply equipment to those grantees and provide the quotes and documentation their applications require. ## Program basics: what the statute says The program was created by Section 71401 of Public Law 119-21. It provides $50 billion over fiscal years 2026–2030 ($10 billion per year). CMS announced first-year state awards on December 29, 2025, ranging from about $147 million to $281 million per state. Allowable uses named in the statute include consumer technology for chronic disease prevention and management, information technology advances including telehealth, training and technical assistance for technology adoption, and remote monitoring. Several categories are capped per state: Spending categoryCap per stateWhy it matters for equipment **Payments to providers**≤ 15%Limits direct provider payments; equipment usually sits in technology or project budgets instead **Capital expenditures and infrastructure**≤ 20%Construction and large capital items compete for this share **EHR replacement**≤ 5%Replacing an existing record system is tightly limited **Administration**≤ 10%State overhead **Telehealth equipment**No separate statutory capGoverned by the state plan and its subgrant terms Sources: [KFF analysis of the RHTP](https://www.kff.org/medicaid/a-closer-look-at-the-50-billion-rural-health-transformation-program/); [CMS / Medicaid.gov Rural Health Transformation Program](https://www.medicaid.gov/resources-for-states/rural-health). ## How the money reaches a clinic or community site States distribute RHTP funds through three main routes: **competitive subgrants** to providers and community organizations, **RFPs and contracts** for statewide services or technology, and **targeted one-time awards** for specific purchases. Equipment usually arrives through the first and third routes: the grantee writes the equipment into its budget, receives the award, then buys from a vendor. ### Example: Minnesota Telehealth Access Points Minnesota’s Telehealth Access Points RFP (closed June 30, 2026) planned five awards of $50,000–$75,000. Eligible applicants included clinics, health systems, hospitals, Tribal Nations, pharmacies, local public health, schools, long-term care facilities, libraries and community organizations. The RFP lists eligible telehealth supplies as: “Computer; Camera, microphone, speakers; Medical devices, such as a blood pressure cuff, pulse oximeter, scale, otoscope, stethoscope, and exam camera” Privacy enclosures are also listed. Source: [Minnesota Department of Health, Telehealth Access Points RFP (PDF)](https://www.web.health.state.mn.us/facilities/ruralhealth/ruraltrans/docs/taprfp.pdf). ### Other state examples StateTelehealth lineSource **Montana**One-time awards for necessary telehealth equipment[Montana DPHHS approved initiatives](https://dphhs.mt.gov/RuralHealthTransformationProgram/ApprovedRHTPInitiatives) **Louisiana**Telehealth Infrastructure for Rural Access Program; notice of intent to contract published October 2, 2026[Louisiana Department of Health](https://ldh.la.gov/page/rural-health-transformation-program) **North Carolina**$20 million to expand telehealth access and upgrade healthcare technology[CMS press release](https://www.cms.gov/newsroom/press-releases/trump-administration-announces-20-million-expand-telehealth-access-upgrade-healthcare-technology) Every state publishes its own plan, calendar and terms. Start from your state’s RHTP page and procurement portal, not from another state’s rules. ## What is typically NOT eligible Minnesota’s award terms (Attachment B of the RFP) mirror the CMS conditions and give a useful picture of common exclusions. Your state’s list is the one that applies. ExclusionWhat it means for an equipment budget **Supplanting**Funds must support new or expanded services, not replace money or equipment you already budget for **Pre-award costs**Purchases made before the grant agreement is signed are not reimbursed **Broadband infrastructure**Network build-out is excluded; connectivity needs other funding **Covered telecom (2 CFR 200.216)**No telecommunications or video surveillance equipment or services from Huawei, ZTE, Hytera, Hikvision, Dahua or their subsidiaries and affiliates **Construction**Building work is generally excluded or tightly limited **EMR / EHR replacement**Replacing a record system is capped (≤ 5% statewide) and often restricted at subgrant level **Direct payment for clinical services**The grant does not pay for patient care itself; billing follows normal payer rules Source: [2 CFR 200.216 (eCFR)](https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-C/section-200.216); Minnesota RFP Attachment B. ## Checklist: writing an equipment line item - **Needs assessment.** State the access gap (distance to specialists, clinic hours, staffing) and who will be served. - **New or expanded service.** Show the equipment enables a service you do not offer today, or extends it to new sites or patients, to avoid supplanting. - **Defined workflow.** Name the on-site telepresenter (nurse, medical assistant, pharmacist or trained staff), the remote clinicians and the referral path. See [assisted teleconsultation](/en/assisted-teleconsultation). - **Itemized quotes.** Get written quotes listing each device, software license, shipping, training and support, with the quote validity date. - **Component origin documentation.** Ask each vendor to document the manufacturers of cameras, video and communication components so you can confirm 2 CFR 200.216. - **Regulatory status.** Record each medical device’s FDA status (510(k) clearance number, or exempt and registered). - **Privacy and security.** Confirm the vendor signs a Business Associate Agreement (BAA) and where patient data is hosted. See [telehealth compliance](/en/telehealth-compliance). - **Training and sustainability.** Describe staff training, ongoing support and how the service continues after the grant (billing through your own EHR and payer arrangements, which you must validate). - **Timeline vs budget periods.** Budget Period 1 obligations end October 30, 2026; Budget Period 2 begins October 31, 2026. Make sure order, delivery and go-live dates fall inside your award period, and do not order before the agreement is signed. ## How a MedConnect configuration maps to typical eligible categories MedConnect is a telemedicine station and software by Promotal (Groupe ELOI), assembled and configured in Ernée, France, and available as a [portable telehealth kit](/en/telehealth-kit), a [telehealth cart](/en/telehealth-cart), a fixed [nurse-led telehealth station](/en/telehealth-center) or a [backpack](/en/telehealth-backpack). An on-site telepresenter examines the patient with connected devices while the remote physician consults by secure video and sees measurements live. The table below maps the US basic kit to the supply categories in Minnesota’s RFP. **It is not an eligibility determination**: the state program and the grantee decide what is allowable. Typical eligible categoryMedConnect componentFDA status **Computer; camera, microphone, speakers**Kit, cart or station workstation running the [MedConnect telehealth platform](/en/software/telehealth-platform) (dual video streams: patient face + device feed)General IT equipment, not a medical device **Blood pressure cuff, pulse oximeter**[Edan iM3s vital signs monitor](/en/tools/moniteur-signes-vitaux-edan-im3s) (NIBP, SpO₂, pulse, temperature)FDA-cleared, 510(k) K202892 / K233038 **Stethoscope**[Riester ri-sonic USB electronic stethoscope](/en/tools/stethoscope-usb-riester)FDA-cleared, 510(k) K132560 **Otoscope**[Firefly digital otoscope](/en/tools/camera-digitale-otoscopique-filaire-firefly)Class I, 510(k)-exempt, FDA-registered **Exam camera**[Firefly general exam camera](/en/tools/camera-digitale-examen-general-filaire-firefly)Class I, 510(k)-exempt, FDA-registered **Medical devices (cardiac)**[Edan SE-1515 12-lead PC ECG](/en/tools/ecg-edan-se-1515) (DX12 wireless / DP12 USB); PDF auto-attached to the consultationFDA class II, 510(k) K152427 The basic kit therefore combines FDA-cleared and FDA-registered devices. None of the device manufacturers (EDAN, Riester, Firefly) is among the companies named in 2 CFR 200.216, and we provide component documentation on request for your grant file. On security: the platform is HIPAA-ready, we sign a BAA, US customer data is hosted on AWS in the US (us-east-1), and Promotal is ISO 27001:2022 certified. MedConnect does not handle billing or claims; it connects to your existing EHR and billing software through HL7, FHIR R4, GDT or API. Delivery is direct: we ship the configured equipment, train your team remotely and provide remote support. We do not offer on-site installation. MedConnect is deployed in France and six other countries, including the United States. For a broader view, see [telehealth equipment](/en/telehealth-equipment), the [kit vs cart comparison](/en/compare/kit-vs-cart), or our pages for [rural hospitals](/en/solutions/rural-hospitals) and [rural health clinics and FQHCs](/en/solutions/rural-health-clinics-fqhc). ## Other funding sources for rural telehealth - **USDA Distance Learning and Telemedicine (DLT) grants** fund equipment for rural telemedicine and distance learning projects. [USDA Rural Development](https://www.rd.usda.gov/programs-services/telecommunications-programs/distance-learning-telemedicine-grants) - **FCC Rural Health Care Program** (Telecommunications Program and Healthcare Connect Fund) supports connectivity for eligible rural health care providers, administered by USAC. [FCC](https://www.fcc.gov/general/rural-health-care-program) · [USAC](https://www.usac.org/rural-health-care/) - **HRSA telehealth grants**, including programs run by the Office for the Advancement of Telehealth. [HRSA](https://www.hrsa.gov/telehealth/grants) Each program has its own eligibility, matching and timing rules. Reimbursement for telehealth services is a separate question; neutral sources such as [CCHP](https://www.cchpca.org/) and [telehealth.hhs.gov](https://telehealth.hhs.gov/) track the rules, which your organization must validate. ## Sources - [CMS / Medicaid.gov: Rural Health Transformation Program](https://www.medicaid.gov/resources-for-states/rural-health) - [KFF: A closer look at the $50 billion Rural Health Transformation Program](https://www.kff.org/medicaid/a-closer-look-at-the-50-billion-rural-health-transformation-program/) - [Minnesota Department of Health: Telehealth Access Points RFP (PDF)](https://www.web.health.state.mn.us/facilities/ruralhealth/ruraltrans/docs/taprfp.pdf) - [Montana DPHHS: approved RHTP initiatives](https://dphhs.mt.gov/RuralHealthTransformationProgram/ApprovedRHTPInitiatives) - [Louisiana Department of Health: Rural Health Transformation Program](https://ldh.la.gov/page/rural-health-transformation-program) - [CMS: $20 million to expand telehealth access (North Carolina)](https://www.cms.gov/newsroom/press-releases/trump-administration-announces-20-million-expand-telehealth-access-upgrade-healthcare-technology) - [eCFR: 2 CFR 200.216](https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-C/section-200.216) For grant applications ## Get a quote for your grant file Tell us your state program, the sites you plan to equip, who presents the patient and your budget-period dates. We will send an itemized quote document you can attach to your application. No prices are published on this page; configuration drives the cost. - ✓ Itemized devices, software, shipping, training and support - ✓ FDA status per device - ✓ Component documentation on request (2 CFR 200.216) - ✓ BAA and US hosting details Name Email * Phone Message Request a grant-ready quote Your message has been submitted successfully. We will get back to you as soon as possible. An error occurred! Have you filled in all the fields? ## Frequently asked questions Can RHTP funds pay for telehealth equipment? Often, yes. The statute lists information technology advances including telehealth, remote monitoring and consumer technology among allowable uses, and several states fund telehealth equipment through subgrants (for example Minnesota’s Telehealth Access Points). But CMS awards the money to states, and each state program decides what its grantees may buy. Check your state’s solicitation and award terms. Can a vendor apply directly for RHTP funding? Generally, no. Most equipment funding flows through state subgrants to providers and community sites, which then buy from vendors. Some states also run their own procurements or contracts with vendors, so check your state’s RHTP page and procurement portal. What is 2 CFR 200.216? 2 CFR 200.216 is the federal rule that prohibits using federal award funds on covered telecommunications and video surveillance equipment or services from Huawei, ZTE, Hytera, Hikvision, Dahua and their subsidiaries or affiliates. Grantees should document the origin of cameras and communication components in any telehealth equipment they buy. When is the next RHTP funding round? It depends on the state. Each state sets its own subgrant and RFP calendar. Budget Period 1 obligations end on October 30, 2026, and Budget Period 2 begins on October 31, 2026, so watch your state RHTP page for new solicitations from then. Does MedConnect guarantee that its equipment is RHTP-eligible? No. Eligibility is decided by each state program and documented by the grantee. MedConnect is not affiliated with CMS or any state RHTP office. We provide a written, itemized quote and component documentation on request so the grantee can complete its application file. Is broadband covered by RHTP? Broadband infrastructure is listed as ineligible in state terms such as Minnesota’s, which mirror the CMS conditions. For connectivity, look at programs such as the FCC Rural Health Care Program. Who uses telehealth equipment bought with an RHTP subgrant? Typically a rural clinic, critical access hospital, rural health clinic, FQHC, pharmacy, school, library or community site, where a nurse or trained telepresenter examines the patient with connected devices while a remote clinician consults by video.