CTRC’s Strategic Initiative: Digital Health Optimization for Rural Hospital Sustainability 3.5.25 (Full RFP HERE )
The California Telehealth Resource Center (CTRC) has launched a statewide initiative to address the rural hospital crisis through digital health optimization—a strategy designed to improve financial sustainability, enhance patient outcomes, and expand access to care. Across California, rural hospitals are struggling to stay afloat, with many operating at a loss or facing closure. However, when properly implemented, digital health tools—including telehealth, Remote Patient Management (RPM & RTM), eConsults, and AI-enabled services—can serve as critical drivers of financial sustainability.
For these solutions to be effective, rural hospitals need more than just new technology—they require investment in modernized technology infrastructure, digital health service technical assistance to integrate new care models, and workforce capacity-building to ensure successful adoption. CTRC’s overarching goal is to develop and scale a digital transformation blueprint that will help rural hospitals leverage technology for financial viability and long-term sustainability.
To advance this mission, CTRC is undertaking an intensive technical assistance project with a rural hospital California currently operating at a significant financial loss. While the hospital initially sought support to optimize Remote Physiological Monitoring (RPM), Remote Therapeutic Monitoring (RTM), and telehealth, CTRC is expanding the scope to include AI-driven efficiencies and eConsult solutions, which have been shown to reduce costs, prevent unnecessary hospital visits, and maximize workforce capacity.
The hospital will serve as a case study that will allow CTRC to gain deeper insights into the specific financial and operational challenges rural hospitals face, while developing best practices that can be replicated statewide. This effort includes expert consultation with hospitalists specializing in health IT and digital health and collaboration with HRSA’s Telehealth Centers of Excellence, ensuring a high-impact, data-driven approach.
Through this initiative, CTRC is laying the groundwork for a sustainable future for rural hospitals, demonstrating that strategic investments in digital health infrastructure and implementation support can transform struggling hospitals into financially stable, tech-enabled care centers. This work is not only about keeping hospitals open—it’s about ensuring they are thriving, resilient institutions that can deliver better care with efficiently.
