Allowable Investments Search Tool

Certification is defined as achieving benchmark outcomes (such as passing a test or inspection) in support of the desired skill, upgrade, or acknowledgment and is utilized in a manner to increase the value (or perception) of a person, business, or program. Certifications and associated costs are unallowable.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Consulting is defined as the hiring or contracting of a vendor or person to provide non-guaranteed guidance on a specific subject, area, program, or activity and is an unallowable expense. SHIP-approved training given by a person or business going by the title of "consultant" is an allowable expense.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Application: Contract is defined here for reference to contracting services (i.e. building, employment, alterations and renovations, etc.).

A contract is defined as a legally binding document guaranteeing reciprocal services by a vendor or person in exchange for a pre-determined payment.

Note: Some allowable training consultants, programs, and services require an agreement or contract execution.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Credentialing is defined as proving a skill or level of operation to provide evidence of authority, status, rights, entitlement or privileges, or the like. Credentialing and associated costs, such as renewing physician credentials for patient admittance, is an unallowable expense.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Direct patient care occurs when a facility, its providers, or staff, provide services (directly or indirectly) to diagnose, stabilize, treat, repair, maintain, or improve the health of a patient regardless of patient status (inpatient, outpatient, swing bed, SNF, etc.) or location (med/surgical, emergency room, waiting room, ambulatory, etc.,), and is an unallowable expense.

Example: Telehealth implementation is an approved SHIP expenditure. Purchasing software and training that will enable staff to receive readings from a Bluetooth-enabled blood pressure cuff is allowable under telehealth implementation, but the blood pressure cuff itself is unallowable. Training on how to use the blood pressure cuff on the patient is unallowable. 

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Equipment is defined as a one-time purchase product used to perform or support a task. 

Patient Equipment: Fixed or mobile product to be used directly by a patient (for treatment or comfort) such as a whiteboard, Wi-Fi router, wheelchairs, or beds. This is an unallowable expense.

Medical Equipment: Fixed or mobile product to be used to diagnose, treat, and maintain a patient's health and wellbeing, whether in person or remotely via computer software. This is an unallowable expense.

Telehealth Equipment (Computer Hardware): Fixed or mobile products to support the integration and adoption of telehealth services within a facility. This is an allowable expense. See also: Hardware.

Training Equipment: Fixed or mobile products that will be used solely to support SHIP-approved training, such as a training crash cart. This is an allowable expense.

Office equipment: Fixed, mobile, or electronic equipment used solely to support day-to-day office operations. This is an unallowable expense.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Furniture is defined as a one-time purchase product that is either fixed or moveable and required for the operation of an office, clinic, patient room, patient waiting room, or other facility space such as tables, chairs, stands, decorations, pictures, rugs, or curtains. Furniture expenses are unallowable.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Hardware is defined as technology-based durable equipment as a one-time purchase to support a SHIP-approved category and is an allowable expense.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Infrastructure is defined as physical support, addition, enhancement, or upgrade to ensure the operational continuance of a facility or program and is an unallowable expense. Infrastructure is often unseen and generally requires contractor and building services. An example of an infrastructure expenditure may be installing fiber optic cable for high-speed internet access, which is an unallowable expense. 

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Membership is defined as an arrangement between a business and the facility whereas the facility has access to associated benefits. Memberships and associated fees such as American Hospital Association are unallowable.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Updated January 2023

A recurring payment is defined as a pre-determined payment given over a pre-set schedule to continue services or products previously received or continuously received. Recurring payments are unallowable. Payments that occur each SHIP fiscal year for a SHIP-approved category, such as yearly ICD training, are not considered recurring and should be recorded as individual purchases.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Updated January 2023

Renovation and alteration provide physical enhancements, changes, or other variations to an existing facility. Sometimes referred to as "upgrades," renovations and alterations often require contracting services by a licensed professional and are an unallowable SHIP expense.

Examples of unallowable expenses include but are not limited to: 

Services are defined as an act performed for remuneration.

Training services: Hiring a company or subject matter expert (SME) to conduct education and direction on a SHIP-approved category directly to hospital staff either in person on remotely via computer software. This is an allowable expense.

Physician/Medical services: Any action performed by a physician or medical staff to diagnose, treat, and maintain a patient's health and wellbeing, whether in person or remotely via computer software. This is an unallowable expense.

Pharmacy services: Any action performed by a pharmacist, pharmacy assistant, or medical staff to fill, consult, manage, or distribute medication to a patient. This is an unallowable expense.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Software is a technology-based program designed to provide digital operational support to a SHIP-approved category and is an allowable expense. The SHIP-approved category software can be delivered through fixed format (for example, CD), downloaded, or cloud-based.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Definition

Accountable Care Organization (ACO)

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

Value-Based Purchasing (VBP) Investment

Updated June 2024

A subscription is defined as an arrangement to continually receive services for a preset price. Subscription services solely in support of SHIP-approved categories such as ICD software are allowable.

Generally, subscriptions for software are allowable. See the table below or email SHIP-TA@ruralcenter.org and copy your PO with questions or concerns.

Please note that subscriptions to ongoing or on-demand training (at-will training) are unallowable expenses. Subscriptions that "happen to include" a SHIP-approved expenditure should be avoided. Subscriptions must be purchased and used for the SHIP-approved category. 

Examples of allowable expenses include but are not limited to:

Note: A common example is ICD Software. Whereas a hospital purchased one program that could be downloaded to multiple computers (or server accessed), many ICD companies have now moved to cloud-based subscription services where the hospital pays a "per user" license. This specific example would be allowable under "Payment Bundling, A: ICD-10 Software."

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Updated January 2023

Supplies are defined as consumable and thus replenishable objects or materials used to perform a task.

Medical Supplies: Replenishable treatment-centric products such as band aids, gauze, medications, bedpans, sanitizer, etc., are unallowable.

Patient Supplies: Replenishable patient-use centric products such as pamphlets, fliers, blankets, pillows, etc., are unallowable.

Training Supplies: Single-purpose supplies used in direct support of a SHIP allowable training, such as training books, training videos, training manuals, training software, and training hardware are an allowable expense. See also: Equipment, Hardware, and Software. Training supplies supporting credentialing, testing, and certifications (such as CPR) are unallowable.

Office Supplies: Durable or replenishable products used by staff in the day-to-day operation of the facility such as staplers, pencils, ink, and paper are unallowable.

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.

Training is defined as learning a specific skill or process from a professional business or subject matter expert to improve outcomes and outputs related to a SHIP-approved category and is an allowable expense.

Training for direct patient care is unallowable. 

This card is a definition to help users understand the application of SHIP spending categories and expenses. Definitions found in the SHIP Allowable Investment Search Tool may not be the same as the Federal Government's (or departments within) definition.