South Dakota Announces First Awards for Rural Health Transformation Grant Program Management

FOR IMMEDIATE RELEASE: May 21, 2026
MEDIA CONTACT: Tia Kafka, [email protected]

South Dakota Announces First Awards for Rural Health Transformation Grant Program Management

PIERRE, S.D. - The State of South Dakota has selected two consultant organizations to support implementation and project management of several initiatives within the South Dakota Rural Health Transformation initiative.

"I am committed to keeping South Dakota strong, safe, and free, and supporting rural health is a key component of that vision," said Governor Larry Rhoden. "The Rural Health Transformation program is already running full steam ahead, delivering results for South Dakotans. I am grateful for my Department of Health and their hard work throughout the process."

"The Rural Health Transformation initiative continues to move forward in South Dakota from planning into action," said Melissa Magstadt, Secretary of Health. "These awards put the right support in place to manage a large-scale investment in digital health and business management to ensure the initiative is implemented efficiently and effectively across South Dakota."

North Star Solutions, LLC, based in Sioux Falls, has been awarded the contract to serve as the Digital Health Modernization and Technology Grant Program Management Consultant with the total award amount of $1,462,802. North Star Solutions, LLC will assist with program implementation, manage the application process, and ensure all requirements are met so the grant program operates smoothly and delivers results for communities across the state. The company will provide grant management services for all aspects of the nearly $480 million Digital Health Modernization and Technology Grant Program.

The Department of Health has also awarded, Black Hills Special Services Cooperative, a South Dakota based company since 1980, the Project Management Support for the Chronic Disease Management initiative. They will have a project management team with extensive chronic disease experience and strong South Dakota partnerships. This team will serve as effective liaisons for all funded entities involved in the Chronic Disease Management initiative, including health organizations and schools implementing evidence-based interventions.

The Department of Social Services has also awarded a two-year contract to Business Concepts & Applications (BCA) of Pierre for project management for the South Dakota Medicaid provider quality and access grants, Primary Accountable Care Transformation, and Behavioral Health. The $500,000 contract will provide comprehensive project management, coordination, and implementation support services. BCA will assist with reporting and evaluation, development and maintenance of project plans, and grant administration, including technical assistance with subrecipient awards.

The Department of Health will continue to share updates with stakeholders, partners, and the public as Rural Health Transformation efforts move forward. A new Rural Health Transformation Funding Forecast is now available to help partners understand upcoming funding opportunities, timelines, and key milestones across initiatives. Additional resources, including frequently asked questions, updates, and past communications, are available at ruralhealthtransformation.sd.gov to support planning, coordination, and awareness.

For more information about Rural Health Transformation efforts in South Dakota, visit ruralhealthtransformation.sd.gov. The Rural Health Transformation initiative is a statewide effort focused on strengthening rural healthcare systems and improving access to quality care across South Dakota. Through strategic investments, innovative care models, and cross-agency collaboration, Rural Health Transformation is designed to build a more resilient, connected, and sustainable rural health system for communities across the state.

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This press release is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. department of Health and Human Services (HHS) as part of the Rural Health Transformation Project, a financial assistance award totaling $189,477,607.26 with 100% funded by CMS/HHS. The contents are those of the South Dakota DOH and DSS and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.