Distribution of $20 million for technologies that tackle rural healthcare challenges in Louisiana is running late — but is under active consideration, officials say.
State agency Louisiana Economic Development (LED) had expected to announce the first recipients of its Rural Tech Catalyst Fund in mid-October, according to its website. With the end of the month approaching, details are pending on where the money will go.
“Applications for the Rural Tech Catalyst Fund are currently under active review by the program’s investment committee,” Margot McNeely, who handles innovation communications for LED, told Technical.ly. “No awards have been finalized or announced at this time.”
“Applications for the Rural Tech Catalyst Fund are currently under active review by the program’s investment committee.”
Margo McNeely, Louisiana Economic Development
The state will share more information once the selections are finalized and approved by the federal government, she said.
A partnership between LED and the Louisiana Department of Health, the initiative plans to invest $20 million annually in startups developing technologies to tackle rural healthcare challenges, including access to care and chronic disease prevention and management.
The program, announced in May, is part of Louisiana’s broader Rural Health Transformation Program, supported by federal funding through the Centers for Medicare & Medicaid Services (CMS).
Around a quarter of Louisiana’s population, or 1.1 million people, live in rural areas, according to the Louisiana Dept. of Health. On average, a rural Louisianian is 7 miles from a hospital and 20 miles from a health clinic, per the state. Of the hospital options available, 75% do not offer labor and delivery services, according to thinktank Center for Healthcare Quality and Payment Reform.
To be eligible for awards from the fund, a company must be under 10 years old and have raised less than $50 million in prior funding. Recipients can receive up to $3 million without giving up equity, with payments tied to project milestones. The state does plan to take an equity stake in some of the companies, Louisiana Chief Innovation Officer Josh Fleig told KFF Health News.
Funding for round 1 is supposed to be allocated by Oct. 30, according to CMS guidance, which provides detailed requirements for applicants, including a functional prototype or proof of concept, measurable project milestones and federal review of finalists
Under the guidance, states should submit finalists to CMS at least 15 business days before announcing recipients. Federal approval is required before conditional funding offers can be made.
Louisiana’s program website says it subsequently refined its review process and evaluation criteria to align with finalized federal guidance. LED didn’t immediately respond to questions about whether federal review affected the anticipated announcement schedule.
The program website lists applications as under review and says a second round will open soon.
