Louisiana state leaders unveiled in May a program to fund healthcare innovation that addresses gaps in the state’s rural healthcare system.
Companies focused on matters like chronic disease, healthcare access, healthcare workforce shortages, telehealth and care coordination are encouraged to apply.
“This effort is about building sustainable healthcare systems that improve quality of care, quality of life for rural Louisianans,” Louisiana surgeon general Evelyn Griffin said during a press conference announcing the initiative.
“Over 100 companies have already expressed interest.”
Louisiana Department of Health Secretary Bruce D. Greenstein
Around a quarter of Louisiana’s population, or 1.1 million people, live in rural areas. An executive order from Gov. Jeff Landry includes statistics provided by the Louisiana State Office of Rural Health stating that rural residents face disproportionately higher rates of chronic and adverse health conditions, with a 44% prevalence of hypertension and a 17% rate of diabetes.
On average, a rural Louisianian is seven miles from their hospital and 20 miles from their clinic. Of the hospital options available, 75% do not offer labor and delivery services.
The roughly $911 billion in Medicaid cuts, which included funds that went to rural healthcare providers, led to providers around the country feeling the impact.
The state’s new initiative “increases access in rural communities,” Landry said during the press conference. “This is huge.”
Healthtech fund applications are now open
The application, administered by Louisiana Innovation, is live.
The fund supports early-stage and growth-stage technology companies, Louisiana Department of Health (LDH) Secretary Bruce D. Greenstein said at the press conference.
Awards are capped at up to $3 million per company and are distributed through milestone-based payments.
Funding is not given upfront, according to the Rural Tech Catalyst Fund (RTCF) application. Companies awarded RTCF money must submit a detailed budget with quarterly milestones. Grants are disbursed in installments when a healthtech firm reaches the milestones.
Eligible companies must be under 10 years old with less than $50 million in outside investment, Greenstein said at the May press conference.
“Over 100 companies have already expressed interest,” Greenstein said.
Louisiana Economic Development (LED) will evaluate the financial viability of applicants, and LDH will review the clinical side, Greenstein said, and the program will be managed by Louisiana Innovation.
Federal dollars fund Louisiana’s rural healthtech push
The RTCF, formed in partnership with LED and LDH, is funded through the Rural Health Transformation Program.
The Rural Health Transformation Program provides $50 billion nationally over five years, with $10 billion available nationwide each fiscal year from FY2026 through FY2030. Louisiana received about $208.37 million for FY2026.
The state is reserving up to $20 million of that award for the Rural Tech Catalyst Fund, a rural health innovation initiative managed through Louisiana Innovation and focused on health technology deployment in rural communities.
The money does not merely have to be allocated by Sept. 30. CMS says funds allotted for a budget period remain available through the end of the following federal fiscal year. Funds that are not spent within that timeframe, or otherwise remain unexpended or unobligated, may be redistributed under the program’s funding formula.
“Hopefully we’ll have overwhelming demand and it will be tough to find the best companies,” Greenstein said at the press conference.
