HFS and CDB Announce Unprecedented Grant Opportunity for Healthcare Transformation Capital Improvement Projects

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$200 million is available for eligible projects

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

"My administration's historic $200 million capital investment will help transform our healthcare delivery system statewide," said Governor JB Pritzker. "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 that are being funded through HFS' Healthcare Transformation Collaboratives program. This equity-focused program provides state funding to groups of healthcare providers and community organizations that have partnered to help Illinoisans access quality healthcare in the communities they serve. However, participation in a Healthcare Transformation Collaborative is not a pre-requisite for applying for these available capital funds.

"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," said HFS Director Elizabeth Whitehorn. "We look forward to seeing the project proposals from the provider community, as we continue our work to reimagine Illinois' health care system and improve outcomes across the state."

"CDB is proud to administer this unprecedented grant program with HFS," said CDB Chief of Staff Darnita A. Lee. "This joint initiative will enable healthcare providers to address health disparities in underserved communities by funding the construction or renovation of community health centers. We look forward to providing support and oversight on the general constructability of the proposed projects."

This effort is a partnership between HFS and CDB, which will jointly award the funds to the selected awardees. There is a total of $200 million in funding available, and the funding source is the Capital Development Fund. Any health care provider in Illinois, including hospitals licensed under the Hospital Licensing Act, that is enrolled as an eligible medical provider with HFS, may be eligible to receive a Capital Program grant. The grant opportunity is limited to planned capital improvement expenses and costs for projects that are already in the construction phase are not eligible for reimbursement.

The NOFO was posted on May 1, and applications are due by July 1, 2024. Awards are expected to be announced later this year. HFS and CDB anticipate making between six and 10 awards with the available funding. The amount of individual awards will vary, depending on the scope of the capital project proposals that are submitted.

Priority will be given to safety net hospitals, particularly those participating in a Healthcare Transformation Collaborative. Critical access hospitals and projects in communities where there are significant health disparities and insufficient health resources, as determined by the Centers for Disease Control and Prevention social vulnerability index, will also be given priority consideration.

Applicants that are not a participating partner in an approved Healthcare Transformation Collaborative must demonstrate how the proposed capital program project will promote the transformation of the healthcare system in Illinois.

An entity may not apply for a grant until the entity has registered and pre-qualified through the Grant Accountability and Transparency Act (GATA) Grantee Portal, www.grants.illinois.gov/portal. Registration and pre-qualification are required annually.

Successful applicants must enter into a grant agreement with CDB outlining the roles and responsibilities of the parties. The maximum contract period for the grants is five years, and all projects must be operational at the end of the grant term.

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