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Payment Bundling (PB)/Prospective Payment System (PPS)

Hospitals participating in the Small Rural Hospital Improvement Program (SHIP) are permitted to make investments in hardware, software, and training to comply with quality improvement activities such as advancing patient care information, promoting interoperability, and payment bundling. According to the Centers for Medicare and Medicaid Services, the Bundled Payments for Care Improvement (BPCI) initiative links payments for the multiple services beneficiaries receive during an episode of care.  

The example activities listed below — from the

FY 2024 SHIP Allowable Investments (175.07 KB)

— are not intended to be a comprehensive list, but can assist eligible SHIP hospitals in planning and selecting appropriate investments.

For additional clarification, refer to the SHIP Allowable Investments Search Tool and SHIP Frequently Asked Questions (FAQ).

Examples of Payment Bundling (PB) or Prospective Payment System (PPS) Investment Activities

PB or PPS Investment ActivitiesExamples of Allowable Activities
A. ICD-11 software
  • Training that updates and computerizes hospital policies and procedures to implement ICD-11
  • Hardware/software investments that improve quality, efficiencies, and coding
B. ICD-11 training
C. Efficiency or quality improvement training in support of PB or PPS related initiatives

Training that improves processes through adoption of best practices and the transition to value-based payment strategies such as the following:

D. S-10 Cost Reporting training
E. Price transparency training

Software and training to support hospital compliance with price transparency rule. SHIP funds may be used to support a consultant or vendor to build a price transparency software and/or website development, as well as maintenance or updates to the software or website . SHIP funds can support staff training by a consultant.

 

PB/PPS-Specific Investment Activities by SHIP Hospitals, FY 2020 - FY 2022
 

SHIP Hospital Use of PB/PPS Investments, FY 2020 - FY 2022

For more information or for additional support, please contact the SHIP Technical Assistance Team at ship-ta@ruralcenter.org   

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