Dakota State University awarded nearly $1 million to strengthen rural healthcare cybersecurity
September 22, 2026
MADISON, S.D. — Dakota State University has been awarded a $999,242 grant to establish CyberRx SD, a statewide resource that will help South Dakota healthcare providers strengthen cybersecurity, modernize digital systems, and sustain secure, reliable care.
CyberRx SD is an initiative of Rural Health Transformation South Dakota.
CyberRx SD will support healthcare organizations participating in South Dakota’s Digital Health Modernization and Technology Grant Program. Led by the Dakota State University Applied Research Lab, it will provide vendor-neutral technical assistance designed for rural and underserved providers that often face limited technology staffing, constrained budgets, aging infrastructure, and growing cybersecurity and compliance demands.
“As healthcare becomes increasingly interconnected, protecting patients, providers, and critical health systems from cyber threats has never been more important,” said Dr. Ashley Podhradsky, DSU vice president for research and economic development. “Through this partnership, CyberRx SD, under the direction of Dr. Joel Wohnoutka, executive director of the Applied Research Lab, will provide cybersecurity services and support to healthcare organizations across South Dakota while advancing workforce development, education, and innovation. These efforts will strengthen the security and resilience of healthcare technologies and critical systems, increasing cyber resiliency across the state and enabling providers to deliver safe, reliable, and trusted care to the communities they serve.”
CyberRx SD will offer a tiered service model tailored to participating providers’ needs and readiness. Planned services include:
- Cybersecurity assessments, penetration testing, vulnerability assessments, and incident-response readiness;
- Dark web and open-source intelligence monitoring, along with virtual chief information security officer advisory services;
- Electronic health record optimization, interoperability, and health information exchange technical assistance;
- Workforce training, cybersecurity education, and artificial intelligence literacy;
- Analytics, data intelligence, data governance, and population health readiness; and
- Sustainability planning to help organizations maintain secure digital health improvements after grant funding ends.
Healthcare providers increasingly rely on electronic health records, telehealth platforms, patient portals, cloud services, billing systems, referral networks, diagnostic technologies, analytics systems, and health information exchange connections. A cyber incident affecting any of those systems can delay care, disrupt access to records, interrupt referrals and billing, force staff to use manual downtime procedures, and weaken patient trust.
The Applied Research Lab (ARL) in Sioux Falls.
By helping providers identify vulnerabilities before they become incidents, strengthen security controls, improve data governance, and prepare employees to use new tools responsibly, CyberRx SD will support both patient safety and the long-term sustainability of rural healthcare delivery.
“Cybersecurity is patient safety. When a rural healthcare provider loses access to critical systems or patient data, the impact is immediate — it can disrupt care, delay treatment, and put an entire community at risk,” Podhradsky said. “CyberRx SD will bring Dakota State University’s cybersecurity and applied technology expertise directly to healthcare providers across South Dakota, helping them modernize technology, strengthen their defenses, and build the long-term resilience needed to deliver safe, reliable care.”
The award, which is renewable for four years, is part of South Dakota’s investment in digital health modernization through the federal Rural Health Transformation Program. State leaders recently announced $90 million in technology and data modernization funding supporting 82 grants focused on priorities including electronic health records, cybersecurity readiness, digital equipment, interoperability, and technology-based workforce training.
“The federal investment in rural healthcare modernization creates a real opportunity for providers across South Dakota to strengthen both their technology and their cybersecurity,” said Wohnoutka. “CyberRx SD is about making sure they have practical, vendor-neutral expertise to help them make smart technology decisions, reduce risk, and build systems that are secure and sustainable for the long term.”
Regional Innovation Centers funded through the initiative are intended to bring together healthcare, community, academic, and technology partners to accelerate digital modernization. CyberRx SD will serve as a trusted partner for providers across the state, combining the university’s cybersecurity expertise with hands-on technical assistance, education, workforce development, and applied research.
The Dakota State University Applied Research Lab is a specialized cybersecurity and technology research center that performs applied research, software development, digital forensics, and technical work for public- and private-sector partners.
The CyberRx SD award will also serve as an important catalyst for Dakota State University’s applied research growth by activating DARC, the university’s affiliated applied research corporation. DARC will hire new personnel to support CyberRx SD and expand the capacity to move DSU’s research and technical expertise into operational environments across South Dakota and beyond.
“CyberRx SD provides an important opportunity to activate DARC, build our team, and put Dakota State’s expertise to work against a significant real-world cybersecurity challenge,” said Stacy Kooistra, chief operating officer of DARC. “We will be creating high-skill jobs in South Dakota while building additional cyber and technical capacity that can support larger and increasingly complex applied research projects across areas including healthcare, national security, and other critical sectors."
Funding disclosure
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 $999,242.00, with 100% funded by CMS/HHS. The contents are those of the South Dakota DOH and DSS and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.