In the vast, rugged landscape of the Big Sky Country, a seismic shift is occurring in how care is delivered and funded. As of January 2026, Montana has officially secured over $233 million in federal funding through the newly enacted Rural Health Transformation Program (RHTP). This represents the first installment of what is projected to be a $1.2 billion investment over the next five years, aimed at stabilizing a rural healthcare system that has long teetered on the edge of insolvency.
For Home Healthcare Providers Montana, this isn’t just another grant it’s a fundamental restructuring of the industry. The mandate for 2026 is clear: agencies must modernize their technology and stabilize their workforce, or risk losing out on the historic rate increases and supplemental payment pools currently being distributed by the Department of Public Health and Human Services (DPHHS).
The Workforce Mandate: Wage Hikes and Retention Pools
The primary challenge for Montana agencies has always been the “frontier gap” the difficulty of recruiting and retaining caregivers in communities like Scobey or Ekalaka. To combat this, Montana’s 2026 strategy includes aggressive workforce investments.
Under House Bill 2, the state has allocated significant Medicaid rate increases specifically to bolster direct care worker compensation. Furthermore, the newly approved State Plan Amendment (SPA) 25-0015 authorizes a specific “Direct Care Wage” supplemental payment pool. To qualify for these funds, agencies must submit a detailed plan to the DPHHS outlining exactly how they will distribute these supplemental payments to their staff.
Staying competitive in this labor market requires more than just higher pay; it requires administrative efficiency. Agencies utilizing a modern EHR can automate the tracking of these supplemental payments, ensuring that every dollar meant for the caregiver reaches them without overwhelming the office staff with manual payroll adjustments.
Technology Innovation: The EHR Modernization Push
A cornerstone of the $233 million revolution is “Initiative 5,” which focuses exclusively on Technology Innovation. The state is actively incentivizing rural providers to modernize their Electronic Health Record systems to improve data sharing, cybersecurity, and interoperability.
For home care agencies, this means moving away from legacy systems that don’t “talk” to hospitals or state portals. The 2026 mandate emphasizes:
- Interoperability: Your software must be able to share patient data seamlessly with regional “Centers of Excellence.”
- Cybersecurity: With the surge in digital health data, ensuring your platform is fully hipaa compliant is no longer optional; it is a prerequisite for receiving RHTP technology grants.
- Telehealth Expansion: New funding is available for telehealth equipment, allowing agencies to provide “virtual check-ins” in remote areas where travel is prohibited by winter weather.
EVV Compliance: The Key to Unlocking Revenue
With the state’s “Open Vendor” model, Montana agencies have the flexibility to choose their own technology partners, provided they integrate with the state’s aggregator. In 2026, EVV (Electronic Visit Verification) is the cornerstone of Medicaid program integrity.
Without compliant EVV data recorded in real-time at the point of care, claims for Personal Care Services (PCS) and Home Health Care Services (HHCS) will be denied. For a Montana agency, the right myezhome care software doesn’t just record a clock-in; it validates the location via GPS, ensuring compliance even in “dead zones” through offline sync capabilities. This level of precision is essential for surviving the tiered audits that accompany the new federal funding.
Scaling Your Agency in the “One Big Beautiful Bill” Era
The “One Big Beautiful Bill” enacted in July 2025 has paved the way for Montana to receive the fourth-largest allocation of rural health funding in the nation. This is a “game changer” for small towns, but the administrative burden of managing these new care models and payment structures can be daunting.
By consolidating your operations into a platform like myEZcare, you can transform these regulatory mandates into growth opportunities. Automation allows your team to focus on clinical outcomes such as suicide prevention and chronic disease management which are the specific metrics the state will use to evaluate agency performance in 2026.
Frequently Asked Questions: Montana 2026 Rural Health Mandate
How does my agency apply for the RHTP technology grants?
Funding will be awarded through competitive bidding at bids.mt.gov and direct grant applications via the DPHHS. Keep an eye on the “Rural Health Transformation” portal for the next Notice of Funding Opportunity (NOFO).
What is the current direct care wage increase for 2026?
While it varies by service, the state’s goal is to keep direct care wages competitive. Under SPA 25-0015, agencies can receive supplemental “lump sum” payments to pass through to their workers.
Are telehealth visits now fully reimbursable in Montana?
Yes, the 2026 reforms have expanded Medicaid reimbursement for telehealth and remote patient monitoring, especially for behavioral health and chronic disease management in rural areas.
Do I have to use the state-provided EVV solution?
No. Montana uses an Open Vendor Model. You can use an alternate system like myEZcare, as long as it is certified to transmit data to the state’s aggregator, Mobile Caregiver+.
What are the “Five Core Initiatives” of the RHTP?
Workforce Development, Sustainable Access, Innovative Care Models, Community Health and Prevention, and Technology Innovation.
