Rural Health Transformation Program (RHTP): Turning Funding into Opportunity for Independent Pharmacies

At its core, RHTP is a federal investment designed to help states redesign how rural healthcare works focusing on sustainability, modern technology, and integrated care. Each state must create its own roadmap that uses these funds to:

• Support hospitals, clinics, and pharmacies that deliver essential care in rural areas
• Invest in workforce development and telehealth solutions
• Modernize data infrastructure, including electronic health records (EHRs)
• Expand access to team-based care models and preventive health services

The program’s goal isn’t just to fund organizations; it’s to keep rural communities healthy by connecting local providers and closing care gaps that lead to higher costs and poorer outcomes.

Community pharmacies are often the most accessible healthcare provider in small towns. Yet historically, they’ve been left out of many rural transformation efforts because payment models weren’t designed to include pharmacy-based care.

That’s starting to change, thanks in part to the advocacy of independent pharmacy leaders and organizations.

Here’s why this program matters for your business:

• Expanded Role in Care Teams: RHTP encourages states to integrate pharmacists into primary care and chronic disease management programs. That means your clinical services could finally be recognized and reimbursed as part of the care team.
• EHR Access is a Gamechanger: With access to shared patient records, pharmacists can document clinical encounters, bill more efficiently, and enhance coordination with local clinics and hospitals.
• New Revenue Streams: States can choose to reimburse pharmacies directly for services such as remote patient monitoring, medication therapy management (MTM), and preventive screenings under standardized CPT codes.
• Community Impact: Beyond revenue, participation allows pharmacies to take a greater role in public health initiatives, keeping care local while improving patient outcomes.

As Mark Kinney, IPC’s Executive Vice President of Government Relations, explains:

“Without EHR access, you can’t bill, you can’t prescribe, and you can’t truly participate in team-based care. Getting that access is one of IPC’s top priorities.”

Independent pharmacies have a national advocate built to protect and promote their interests and in 2026, IPC is stepping up to help shape how this funding is spent.

Here’s how IPC is leading the charge:

• Joined nationwide coalitions with the National Association of Chain Drug Stores (NACDS), the National Community Pharmacists Association (NCPA) and the Rural Health Transformation Collaborative led by Microsoft, and others to ensure pharmacy representation in every state’s planning process.
• Delivered policy recommendations to all 50 state rural health directors, emphasizing that pharmacists must be recognized as reimbursable providers in transformation plans.
• Pushed for direct payments to pharmacies (not PBMs or intermediaries) for clinical services delivered under RHTP-funded initiatives.
• Advocated for a unified billing process using standard CPT codes so pharmacies can more easily participate in new care programs.

These efforts are already starting to make an impact. Several states, including Ohio, Massachusetts, Minnesota, Louisiana, Montana, are now evaluating pharmacy-led care pilots or considering inclusion of pharmacies in their state transformation frameworks.

If your state plans to adopt IPC’s recommendations; and many are trending that way, independent pharmacies could see new opportunities open up quickly over the next few years. For owners and teams, that might look like:

• Launching new clinical services beyond traditional dispensing, like remote patient monitoring, medication adherence programs, or chronic care follow-ups.
• Getting reimbursed directly for time spent on patient care activities.
• Building new local partnerships with primary care clinics, home health agencies, and hospitals looking for partners in value-based care.
• Positioning for sustainability by diversifying income and reducing dependence on shrinking dispensing margins.

This is more than incremental change; it’s a long-overdue recognition of the essential role pharmacists play in rural health.