As 2026 begins, West Virginia is at the forefront of a historic shift in healthcare delivery. Governor Patrick Morrisey recently announced that the state has secured $199.5 million for the first year of the federal Rural Health Transformation Fund (RHTF). This award, which is expected to total nearly $1 billion over the next five years, represents a massive investment in the Mountain State’s ability to provide care in underserved, rural areas.
For home care agencies, this fund is more than just a headline; it is a strategic opportunity to modernize operations, stabilize the workforce, and expand services to patients who have long struggled with geographic barriers to care.
What is the Rural Health Transformation Fund?
Established under the federal “One Big Beautiful Bill” Act, the RHTF is a $50 billion national initiative designed to revitalize rural health infrastructure. West Virginia’s specific plan focuses on seven flagship initiatives, with a primary goal of bringing “care within reach” of every citizen.
The funding is designed to address the “distance between patients and providers,” a challenge that home care agencies face every single day. By utilizing a robust healthcare software platform, agencies can better align their operations with the state’s new data-sharing and “connected care” requirements, making them more competitive for the sub-grants and contracts that will flow from this billion-dollar pool.
Key Opportunities for Home Care Agencies
The West Virginia Department of Health (WVDH) will distribute these funds through a combination of direct state programs and competitive grants. Home care providers should look to align their business goals with the following RHTF priorities:
1. Workforce Recruitment and Retention
A significant portion of the $199.5 million allocated for 2026 is dedicated to strengthening the clinical workforce. This includes funding for:
- Recruitment bonuses and retention incentives for caregivers in rural counties.
- Training programs to help staff practice at the “top of their license.”
- Technology that reduces administrative burnout, allowing caregivers to focus on patient care.
2. Technology and Modernization
The state is prioritizing a “connected care grid” that expands telehealth and remote monitoring. Home care agencies are the natural “boots on the ground” for these initiatives. To participate, agencies must ensure their internal systems are modern and secure. Understanding What is Homecare Software and how it integrates with state health mobility platforms will be a baseline requirement for agencies seeking to partner with the state in 2026.
3. Innovative Care Models
West Virginia is moving toward value-based care arrangements that reward providers for improved patient outcomes rather than just the volume of visits. This shift puts a premium on documentation accuracy. Using an automated EVV (Electronic Visit Verification) system is no longer just a compliance checkbox, it is the data foundation needed to prove the effectiveness of rural care interventions and secure long-term funding.
How to Prepare Your Agency for Funding
While the state is currently hiring the leadership team to oversee the RHTF, the application processes for sub-awards are expected to open later this year. Here is how your agency can stay ahead:
- Audit Your Infrastructure: Ensure your communication and data storage methods are hipaa compliant to meet federal and state security standards.
- Focus on Outcome Tracking: Start collecting data on how your services reduce emergency room visits, a primary goal of the RHTF’s “treatment-in-place” initiative.
- Invest in Scalability: As the $1 billion rolls out through 2030, the demand for rural services will grow. Adopting a comprehensive home care software solution now will allow you to scale your workforce and patient load without losing administrative control.
Looking Ahead: A Transformed West Virginia
The Rural Health Transformation Fund is intended to make rural America and specifically rural West Virginia healthy again. For home care agencies, this is a “once-in-a-generation” opportunity to move from being an isolated service provider to a central player in a statewide, technology-driven care network.
The agencies that act now to modernize their infrastructure and align with the Governor’s “connected care” vision will be the ones that thrive under this new $1 billion investment.
Frequently Asked Questions
1. How much of the Rural Health Transformation Fund is West Virginia receiving in 2026?
Governor Patrick Morrisey announced that West Virginia has secured $199.5 million for the first year (2026). This is nearly double the guaranteed minimum and the highest per capita award of any neighboring state.
2. When can home care agencies apply for RHTF grants?
While the federal award was finalized in late December 2025, the West Virginia Department of Health (WVDH) is currently hiring a leadership team to oversee distribution. Application windows for sub-grants and provider contracts are expected to open in late Q1 or early Q2 of 2026.
3. What are the “Seven Flagship Initiatives” of West Virginia’s RHTF plan?
The state’s plan focuses on specific pillars, including the Mountain State Care Force (workforce), Smart Care Catalyst (tech innovation), and HealthTech Appalachia (new delivery models).
4. Can RHTF funds be used to purchase new home care software?
Yes. The Smart Care Catalyst pillar specifically allocates resources for providers to upgrade their technology, including data-sharing platforms and AI-driven clinical workflow tools, to improve rural care efficiency.
5. Is eligibility limited only to agencies physically located in rural counties?
No. Eligibility is primarily determined by the service area. If your agency provides care to patients living in federally designated rural counties, you may qualify for funding even if your main office is in a larger city like Charleston or Morgantown.
6. What are the workforce retention requirements for this funding?
Federal law requires a minimum five-year service commitment for clinical talent recruited or retained using RHTF incentives. Agencies must have systems in place to track and verify this long-term commitment.
7. Does the RHTF replace or offset pending Medicaid cuts?
This is a critical concern for WV leaders. While the RHTF provides a “transformational foundation,” industry groups like the WV Hospital Association warn that separate Medicaid changes could still result in a net reduction of federal funding for the state.
8. What technology-driven solutions are prioritized by the fund?
The fund encourages “consumer-facing” solutions, including Remote Patient Monitoring (RPM), telehealth, and cybersecurity upgrades to protect patient data in rural “connected care grids.”
9. Will the state require Electronic Visit Verification (EVV) for RHTF projects?
Absolutely. Since the funding is “outcomes-driven,” the state requires indisputable proof of care delivery. Automated EVV is the primary tool for providing the GPS-verified documentation needed for federal and state audits.
10. How do agencies ensure their applications are “funding-ready”?
Agencies must demonstrate “infrastructure visibility.” This means having a hipaa compliant system that can report real-time health outcomes and administrative efficiency to the WVDH.
