CHEYENNE WELLS, CO – October 5, 2026 — Keefe Memorial Health Service District, doing business as Keefe Memorial Hospital (KMH), has been awarded $4,087,098.03 through Colorado’s Rural Health Transformation Program (RHTP) to strengthen emergency, primary, specialty, and chronic disease care for patients across eastern Colorado.
The funding is part of nearly $170 million in RHTP grants directed by the Colorado Department of Health Care Policy & Financing (HCPF) to rural healthcare providers across Colorado. Funded by the Centers for Medicare & Medicaid Services (CMS), these investments will help protect access to care and support better health outcomes in Colorado’s rural and frontier communities.
Keefe Memorial Hospital will use its RHTP award to advance a coordinated set of initiatives spanning whole person health, EMS transport, telehealth, chronic disease management, and workforce development — building on work already underway across KMH and its two Rural Health Clinics, Prairie View Clinic and Kit Carson Clinic.
The investment responds to longstanding rural health care challenges in eastern Colorado, including provider shortages, long travel distances to specialty care, and limited behavioral health access. By expanding telehealth, strengthening EMS transport capacity, and supporting value-based incentive payment programs, the award is designed to keep more care available close to home for patients in Cheyenne County and the surrounding region.
“This funding allows us to keep investing in the kind of care our community depends on close to home,” said Claressa Millsap, Chief Executive Officer of Keefe Memorial Health Service District. “Every one of these program areas was built around a real need we see in our patients every day, and this award lets us act on it.”
Through this award, Keefe Memorial Hospital will:
- Whole Person Health — Expand integrated medical and behavioral health services so patients receive coordinated, team-based care.
- EMS Transport — Strengthen emergency medical transport capacity and response times across the service area.
- Mini-Grants — Extend program reach through small grants supporting community health partners.
- Workforce — Recruit, train, and retain rural health care providers and staff.
- Incentive Payments — Support value-based incentive payment programs that reward quality improvement.
- Telehealth — Expand telehealth and virtual care access to reduce travel burdens for patients.
- Chronic Disease — Strengthen chronic disease prevention and management services.
Colorado is directing $169,587,181 in RHTP grants to rural healthcare providers across the state. Through a highly competitive application process, 91 applicants and approximately 250 projects were selected to receive funding across 52 rural or frontier counties and three rural census tract counties.
A complete list of Colorado Rural Health Transformation Program awardees and additional information about RHTP is available on the RHTP website.
About Keefe Memorial Health Service District
Keefe Memorial Health Service District, doing business as Keefe Memorial Hospital, is a 25-bed Critical Access Hospital located in Cheyenne Wells, Colorado. KMHSD also operates Prairie View Clinic and Kit Carson Clinic, both designated Rural Health Clinics, providing primary and specialty care to patients across eastern Colorado’s rural and frontier communities. KMH’s mission is advanced health care at the heart of the community it serves.
About the Rural Health Transformation Program
The Rural Health Transformation Program (RHTP) is a five-year federal initiative administered by the Centers for Medicare & Medicaid Services (CMS) designed to strengthen healthcare access and improve health outcomes in rural and frontier communities. The program supports investments in workforce development, innovative care models, technology-enabled services, and health system sustainability. The program was authorized under Section 71401 of H.R. 1 (Public Law 119-21) to provide grants totaling $50 billion in federal funding nationwide from Federal Fiscal Year (FFY) 2026 through FFY 2030.
From the Centers for Medicare & Medicaid Services
Colorado’s award totals $200,105,604.17 for the first year of the program to support rural health transformation efforts across the state, and is 100% funded by CMS. The contents of this release are those of Keefe Memorial Health Service District and the Colorado Department of Health Care Policy & Financing and do not necessarily represent the official views of, nor an endorsement by, CMS/HHS or the U.S. Government.
Media Contact
Abbie Castaneda
Marketing Coordinator
Keefe Memorial Health Service District / Keefe Memorial Hospital
abbie@pathwaydesigngroup.com
308-455-3533