RHTP Initiative 1 - ACO Feasibility Study

RFP 26-87667 Medicaid Alternate Payment Model Feasibility Study This is Initiative 1 of the Rural Health Transformation Program (RHTP). On Dec. 29, 2026, Indiana was awarded a grant of nearly $207 million for the first year of the five-year Rural Health Transformation Program (RHTP) to address health outcomes in the state’s rural communities. The purpose of this solicitation is to identify a Contractor to conduct a study of the potential for a variety of alternate Medicaid payment models, including but not limited to a Rural Medicaid Accountable Care Organization (ACO) model and bundled payments for episodes of care. For example, in its RHTP application to CMS, the State of Indiana noted ACOs nationally have helped align provider incentives, enhance coordination, and strengthen population health management, marking them as a viable alternate payment model to be explored. Indiana also noted bundled payments for episodes of care can incentivize collaboration across providers and provide financial incentives for reducing hospital admissions.