The Louisiana Department of Health (LDH) announced up to $37.7 million in Year 1 workforce investments through the Rural Health Transformation Program to expand healthcare training opportunities and help rural providers recruit and retain the professionals they need.
Funded by the Centers for Medicare & Medicaid Services (CMS), the investments connect Louisiana’s public universities and community and technical colleges with rural hospitals, clinics, and other healthcare providers to build a stronger workforce pipeline in rural communities.
The $37.7 million investment includes three workforce initiatives:
Rural HERO — up to $20 million
The Rural Healthcare Employment Reinvestment Opportunity program will support campus-level programs through Louisiana’s four public postsecondary systems: the LSU System, Southern University System, University of Louisiana System, and Louisiana Community and Technical College System. Each participating campus will partner with at least one rural healt care provider, connecting education and training programs with workforce needs in rural communities. Programs will begin in October 2026 and continue through September 30, 2029.
Rural Clinician Credit Bank — up to $12.7 million
LDH is awarding up to $12.7 million through the Rural Clinician Credit Bank to help rural healt care providers recruit and retain physicians, nurses, dentists, EMS personnel, behavioral health professionals, and other clinicians. Fifty-three providers were selected for funding from 136 applications.
The program provides matching funds for recruitment and retention incentives, including sign-on and retention bonuses, relocation assistance, and professional training.
Grow Your Own — up to $5 million
The Grow Your Own initiative, administered through the Louisiana Community and Technical College System, will create health care career pathways across 39 campuses. The program is designed to reach students and workers at different stages through three pathways:
Discover: Dual-enrollment opportunities that allow high school students to begin health care coursework before graduation.
Earn: Short-term credential programs that prepare participants to enter the health care workforce.
Advance: Stackable education and training pathways that allow health care workers, including certified nursing assistants and licensed practical nurses, to advance toward higher-level credentials while remaining in the workforce.
Year 2 funding opportunities are expected to open in November 2026.
About the Rural Health Transformation Program
Louisiana received more than $208 million in Year 1 funding through the Rural Health Transformation Program. The program is administered by the Office of Rural Health Transformation and Sustainability within LDH and supports efforts to improve access to care, strengthen rural health care systems, expand workforce capacity, and modernize technology and infrastructure.