Small Rural Hospital Improvement Program (SHIP)

The Small Rural Hospital Improvement Program (SHIP), administered by the Health Resources and Services Administration (HRSA) under the U.S. Department of Health and Human Services, offers funding to support small rural hospitals in aligning with value-based care models. SHIP is authorized by Section 1820(g)(3) of the Social Security Act and has a long-standing commitment to enhancing operational performance, care quality, and technological capability in eligible facilities. Originally established through the Balanced Budget Act of 1997, SHIP has evolved to meet the current health care landscape, including the adoption of Health IT, value-based purchasing, and support for Medicare Shared Savings Programs. The purpose of SHIP is to enable small rural hospitals (those with 49 beds or fewer) to implement quality improvement initiatives, particularly those related to payment reform and interoperability. Funding may be used for purchases of hardware, software, and training that support participation in delivery system reforms like Accountable Care Organizations (ACOs), value-based payment programs, and adoption of ICD-11 standards. Hospitals are encouraged to use funds for advancing patient care, supporting transition care efforts, and addressing Social Determinants of Health (SDOH). For fiscal year 2023, up to $20,734,674 is expected to be distributed across 46 awards. Each eligible hospital may receive up to $13,011 annually. These awards are made for a five-year period from June 1, 2023, through May 31, 2028. The State Office of Rural Health (SORH) acts as the fiscal intermediary, submitting applications on behalf of the eligible hospitals within their state and distributing funds accordingly. Hospitals in U.S. territories without a SORH must apply individually. To be eligible, a hospital must be a non-federal, short-term general acute care facility in a rural area, either outside of a Metropolitan Statistical Area or located in designated rural census tracts. Both for-profit and not-for-profit hospitals, including faith-based institutions and tribally operated facilities under Titles I and V of P.L. 93-638, are eligible. Applications must be submitted electronically via Grants.gov by November 8, 2022, at 11:59 p.m. ET. Applicants should ensure that all registrations in SAM.gov and Grants.gov are current. A technical assistance webinar was held on August 31, 2022, and a recording is available online. Required submission components include a project narrative, budget narrative, work plan, staffing plan, organizational chart, and hospital funding spreadsheet. Applications will be reviewed based on six criteria: need (20 points), response (45 points), evaluative measures (10 points), impact (10 points), resources and capabilities (10 points), and support requested (5 points). Key contact for programmatic inquiries is Mx. Krista M. Mastel, MPH, reachable at kmastel@hrsa.gov or (301) 443-0491. Business and grants management issues may be directed to Kimberly Dews at kdews@hrsa.gov or (301) 443-0655.

Ensure use of SHIP templates and obtain CEO and SHIP Project Director signatures for each hospital.