Small Rural Hospital Improvement Program (SHIP)

The Small Rural Hospital Improvement Program (SHIP), under the funding opportunity number HRSA-19-020, is administered by the Department of Health and Human Services through the Health Resources and Services Administration (HRSA). SHIP is a discretionary grant initiative designed to support eligible small rural hospitals in the United States, including its territories, in enhancing value-based payment systems and meeting essential care delivery goals. This grant opportunity is intended to fund improvements in critical infrastructure for eligible rural hospitals, including the purchase of health information technology (hardware and software), training programs, and equipment that support quality improvement activities. These activities aim to advance patient care information, promote interoperability, and support participation in payment reform programs like accountable care organizations (ACOs) and shared savings initiatives. Funding through SHIP is made available to eligible states, which act as fiscal intermediaries through their State Office of Rural Health (SORH). These states, both current SHIP recipients and those with newly eligible hospitals, distribute the funds to small rural hospitals that meet the criteria. Eligibility is defined specifically for non-federal, short-term general acute care hospitals located in rural areas as defined by federal statutes and with 49 or fewer beds as reported in their most recent Medicare Cost Report. The definition of a rural area includes locations outside of a Metropolitan Statistical Area (MSA), rural census tracts within an MSA, or those treated as rural under specific federal provisions. Applicants must be a SORH that manages SHIP awards within the state. Hospitals in U.S. territories without access to a SORH must apply individually. Hospitals may be either for-profit or non-profit, including faith-based organizations. Additionally, tribally operated hospitals under Titles I and V of P.L. 93-638 are eligible, provided they meet the defined hospital criteria. The SHIP grant opened for applications on October 1, 2018, and the final deadline for submission was January 3, 2019. The program does not require matching funds and anticipates distributing 46 awards with a total program funding of $18,771,000. Although specific award ceilings and floors are not listed, this competitive funding is intended to strengthen rural hospital systems across the country. Applicants with questions or needing further information are encouraged to contact Jeanene Meyers at the Health Resources and Services Administration by phone at (301) 443-2482 or via email at jmeyers@hrsa.gov.