Small Rural Hospital Improvement Program (SHIP)

This notice announces the opportunity to apply for funding under the Small Rural Hospital Improvement Program (SHIP). This program supports eligible hospitals in meeting value-based payment and care goals for their respective organizations, through purchases of hardware, software and training. SHIP also enables small rural hospitals: to become or join accountable care organizations (ACOs); to participate in shared savings programs; and to purchase health information technology (hardware and software), equipment, and/or training to comply with quality improvement activities, such as advancing patient care information, promoting interoperability, and payment bundling.

The SORH will be the official award recipient acting as fiscal intermediary for all hospitals within its state. Eligible applicants include states that are currently SHIP recipients, as well as states with hospitals that meet eligibility requirements yet have not been previously funded. SHIP funds assist eligible small rural hospitals that are essential access points for Medicare and Medicaid beneficiaries. Eligible small rural hospitals are non-federal, short-term general acute care facilities that are located in a rural area of the U.S. and the territories, including faith-based hospitals. HRSA-19-020 3 For the purpose of this program: 1) "eligible small rural hospital" is defined as a non-federal, short-term general acute care hospital that: (i) is located in a rural area as defined in 42 U.S.C. 1395ww(d) and (ii) has 49 available beds or less, as reported on the hospital’s most recently filed Medicare Cost Report; 2) "rural area" is defined as either: (1) located outside of a Metropolitan Statistical Area (MSA); (2) located within a rural census tract of a MSA, as determined under the Goldsmith Modification or the Rural Urban Commuting Areas (RUCAs) or (3) is being treated as if being located in a rural area pursuant to 42 U.S.C. 1395(d)(8)(E); and, 3) Eligible SHIP hospitals may be for-profit or not-for-profit, including faith-based. Hospitals in U.S. territories as well as tribally operated hospitals under Titles I and V of P.L. 93-638 are eligible to the extent that such hospitals meet the above criteria. Individual hospitals can find the SORH contact in their state at: https://nosorh.org/nosorh-members/nosorh-members-browse-by-state/. Eligible hospitals within the territories that do not have access to a SORH, must apply to the SHIP program individually, and should contact the SHIP Coordinator, contact information on the cover page of this NOFO document.

Department of Health and Human Services, Health Resources and Services Administration jmeyers@hrsa.gov