Photo: Ed Pellicotte, Director of Outpatient Services, Christina Schuh, Sarah Kattke, and Mike MaherPhoto of Imaging Department and CT
Fall River Health Services Awarded $1.53 Million Rural Health Grant to Modernize Technology and Strengthen Patient Care
HOT SPRINGS, S.D. – Fall River Health Services (FRHS) has been awarded a $1.53 million Grant through the South Dakota Department of Health to modernize critical healthcare technology, improve patient safety, strengthen cybersecurity, and expand access to advanced diagnostic care for patients throughout southwestern South Dakota.
The Digital Health Modernization and Technology Grant was awarded through the State's Rural Health Transformation initiative. FRHS was approved for an award not to exceed $1,528,472 to support technology upgrades designed to improve patient care and create sustainable infrastructure for the future.
The grant will fund several major improvements across FRHS, including:
• Replacement of the hospital's end-of-life CT scanner
• Upgrade of ultrasound imaging technology
• Replacement of aging IV infusion pumps
• Integration of point-of-care glucometers with the Epic electronic health record
• Modernization of cybersecurity infrastructure through replacement of three end-of-life firewalls
• Upgrades to cardiac rehabilitation monitoring and documentation technology
Together, these improvements will strengthen patient safety, improve diagnostic capabilities, reduce delays, streamline caregiver workflows, and help FRHS continue providing high-quality healthcare in a rural setting.
"This grant is another important investment in the future of healthcare at Fall River Health Services," said Jeremy Schultes, Chief Executive Officer of Fall River Health Services. "While our Rural Strong award announced earlier this year will help us bring new services like 3D mammography, MRI, and expanded infusion therapy to our community, this investment focuses on making sure the technology supporting those services—and so much of the care we provide every day—is safe, modern, reliable, and sustainable. These upgrades will make a real difference for our patients and our caregivers, and they will help us continue our commitment to Keeping Excellent Health Care Close to Home."
One of the largest components of the project is replacing FRHS's current CT scanner, which was acquired as a refurbished, older model and has now exceeded its service life. The new 128-slice CT scanner will provide advanced diagnostic imaging closer to home, helping patients receive timely scans without traveling outside the community. The system will also include AI enhancements and allow images to be securely transmitted to radiologists in Rapid City for interpretation.
FRHS will also upgrade its ultrasound system with advanced diagnostic and AI capabilities to support cardiac, abdominal, OB/GYN, and vascular imaging.
Patient safety will be further enhanced through new IV infusion pumps with updated safety and connectivity features. The project will also connect point-of-care glucose meters directly with Epic, eliminating manual data entry and reducing the potential for documentation errors while supporting safer insulin administration.
The grant also includes replacement of three unsupported firewall appliances protecting FRHS clinical systems, patient information, and business operations. New cybersecurity infrastructure will provide enhanced threat protection and ongoing vendor support.
"This project is about more than technology—it's about people," Schultes said. "When our technology works better, our caregivers can work more efficiently, our providers can make decisions faster, and our patients can receive safer, more timely care."
FRHS serves a tri-county region that includes Fall River, Custer, and Oglala Lakota counties, reaching approximately 29,452 rural residents. As an independent rural healthcare provider, FRHS continues to invest in services and technology that address the unique needs of the communities it serves.
Implementation of the projects will take place throughout 2026 and 2027, with the CT and ultrasound systems expected to be operational by June 30, 2027.
This investment continues the FRHS mission of Keeping Excellent Health Care Close to Home by bringing modern technology, safer systems, and advanced diagnostic capabilities to rural patients and caregivers right here in southwestern South Dakota.
"This press release is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of the Rural Health Transformation Project, a financial assistance award totaling $189,477,607.26, with 100% of the funding provided by CMS/HHS. The contents are those of Fall River Health Services do not necessarily represent the official views of, nor an endorsement by, CMS/HHS or the U.S. Government."




