North Carolina
NCDHHS — Office of Rural Health
Year 1 Award
$213.1M
Solicitations
01
This state has open sub-grantee solicitations. Applications are being accepted now.
Analysis
North Carolina opened sub-grantee applications in Q1 2026 with a single consolidated RFA for Hub Lead organizations. NC's hub model — one fiduciary per Medicaid region rather than direct-to-provider grants — concentrates compliance burden in six capable organizations and gives smaller rural providers an accessible entry point through network participation rather than independent applications. The April 2 deadline is the pivotal moment: the six selected Hub Leads will determine how $213M reaches (or doesn't reach) North Carolina's 85 rural counties.
Applications & Compliance
Implementation Model
North Carolina channeled virtually all RHTP funds through six regional Hub Lead organizations, one per Medicaid Standard Plan region, under the NC ROOTS (Rural Organizations Orchestrating Transformation for Sustainability) model. Each Hub Lead receives approximately $39.25 million for the initial 17-month contract period (June 2026 – October 2027) and serves as both programmatic and fiduciary lead for its region. Hub Leads manage sub-awards to local network partners — hospitals, FQHCs, behavioral health providers, AHECs, community organizations. Individual providers do not apply to NCDHHS directly for RHTP funds; they apply to become Hub Leads or join a Hub network. For most sub-grantees, the entry point is identifying your regional hub and engaging the Hub Lead early.
Investment Priorities
Build Rural Community Care Network Hubs
Each hub builds a regional provider network, coordinates referrals across medical, behavioral, and social services, and establishes care navigation and warm handoffs. The goal is a "no wrong door" experience for rural patients — replacing fragmented care with coordinated routing.
Create Models & Capacity for Expanded Primary Care, Prevention, and Chronic Disease Management
Mobile health units, school-based health centers, community health worker-led prevention programs, and chronic disease management for diabetes, hypertension, and cancer screening in underserved rural counties.
Expand and Integrate Behavioral Health and SUD Services
Expansion of mental health and SUD treatment, including crisis response capacity, school-based behavioral health, and telehealth for areas with no in-person providers. NC only expanded Medicaid in December 2023; over 80 rural counties are mental health professional shortage areas.
Build a Robust and Resilient Workforce and Innovative Care Team Models
Loan repayment with 5-year rural service commitments, community health worker certification and deployment, residency programs, and training pipelines through NC's 9 Area Health Education Centers. NC projects a shortage of 12,500+ RNs by 2033; 33% of LPN positions are currently unfilled.
Ensure Fiscal Sustainability of Rural Health Providers through Innovative Financial Models
Support for rural providers transitioning from fee-for-service toward capitation or population-based payments. NC is pursuing CHART CMS alternative payment model alignment — RHTP investment builds the data systems and care coordination infrastructure that makes value-based payment viable for providers who currently lack it.
Modernize Rural Care Delivery through Digital Solutions
Health information exchange connectivity for rural providers, EHR modernization, digital literacy training, and telehealth infrastructure. NC Health Connex (the state HIE) has expanded but rural provider connectivity remains uneven.
What to Watch
Hub Lead selections
May–Jun 2026Six decisions that determine who controls RHTP money in each region. The organizations chosen will define how accessible funds are to small rural providers and community organizations. The fiduciary cash flow requirement structurally favors large health systems over community-rooted organizations.
Region 5 (Eastern NC) Hub Lead
May–Jun 2026Eastern NC has the worst health outcomes, the most hospital closures, and the weakest organizational infrastructure. A Hub Lead that is both capable of managing $39M and trusted by rural eastern communities may not exist — the selection here reveals whether NC ROOTS will deliver equity or concentrate resources upstate.
Eastern Band of Cherokee Indians participation
April 2026EBCI — NC's only federally recognized tribe — could apply as Hub Lead for Region 1 (western NC) or join as a network partner. Their decision signals whether the hub model is accessible to tribal health programs at the $39M fiduciary scale.
Hub Lead cash flow performance
Jun–Sep 2026Hub Leads must float millions in costs before state reimbursement arrives. Organizations without strong balance sheets or credit lines will struggle. If a selected Hub Lead cannot sustain the cash flow gap, the entire regional network is at risk.
Network partner recruitment
Q3–Q4 2026The hub model is only as strong as its network. Thin networks — where Hub Leads award funds primarily to affiliated organizations rather than recruiting independent rural providers — create an extractive rather than distributive structure.