Prairie State Wire

The Illinois Department of Healthcare and Family Services (HFS) and the Illinois Capital Development Board (CDB) have announced an unprecedented Notice of Funding Opportunity (NOFO) as part of the Healthcare Transformation Capital Investment Grant program. This initiative aims to provide funding to capital projects that will address health-related social needs and reduce disparities in healthcare in historically underserved communities.

Governor JB Pritzker stated, "My administration's historic $200 million capital investment will help transform our healthcare delivery system statewide. Thanks to this grant, safety net hospitals will be able to modernize their infrastructure and provide high-quality healthcare services to uninsured or underinsured Illinoisans. I highly encourage all eligible healthcare organizations and collaboratives to apply."

The Healthcare Transformation Capital Investment Grant Program is designed to address some of the infrastructure needs of the projects funded through HFS' Healthcare Transformation Collaboratives program. However, participation in a Healthcare Transformation Collaborative is not a pre-requisite for applying for these available capital funds.

HFS Director Elizabeth Whitehorn said, "HFS is very excited to announce this grant opportunity with CDB, which will help fund capital projects that further state efforts to improve access and equity in health care." She also expressed her anticipation for seeing project proposals from the provider community.

CDB Chief of Staff Darnita A. Lee added, "This joint initiative will enable healthcare providers to address health disparities in underserved communities by funding the construction or renovation of community health centers."

The partnership between HFS and CDB will jointly award the funds to selected awardees from a total pool of $200 million. The grant opportunity is limited to planned capital improvement expenses, with costs for projects already in construction phase ineligible for reimbursement.

Applications are due by July 1, 2024, with awards expected later that year. Priority consideration will be given to safety net hospitals, critical access hospitals, and projects in communities where there are significant health disparities and insufficient health resources.

Applicants not participating in an approved Healthcare Transformation Collaborative must demonstrate how the proposed capital program project will promote the transformation of the healthcare system in Illinois. All successful applicants must enter into a grant agreement with CDB, with a maximum contract period of five years.

More information about the Healthcare Transformation Collaboratives program and the awardees are available on HFS' website.