Allowable Investments Search Tool

Identifying allowable investments for a SHIP-eligible hospital does not have to be a daunting task! This search tool created by SHIP-TA through the Federal Office of Rural Health Policy helps state coordinators and hospitals navigate the possibilities.
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90 results found

Renovation and Alteration (Definition)

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: 

Installing Doors, Windows, or Walls Grading Parking Lots Replacing Flooring
Tinting Windows Installing Accessibility Ramps Signage (New or Updated)
Parking Lot Lighting Speed Bumps Ramps
Definition

Services (Definition)

Definition

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.

Definition

Software (Defintion)

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

Staff Salaries and Payroll

Unallowable

Updated May 2022

Hospital staff salary, benefits, incentives, and bonuses, of any kind, are unallowable.  

Unallowable investment

Subscription (Definition)

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

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.

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:

SHIP Quality Reporting HCAHPS Quality Improvement Training
Telehealth Platforms (Excluding Provider Fees) Disease Registries Population Health Databases
ACO Subscriptions or Fees ICD-10/11 Software Subscriptions  

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.

Definition

Subscriptions

Allowable
Accountable Care Organization (ACO)
Payment Bundling (PB)/Prospective Payment System (PPS)
Value-Based Purchasing (VBP) Investment

Updated January 2023

Subscriptions for products that provide critical services are becoming more prevalent in rural hospitals. 

Some subscriptions are allowable.

Examples of allowable expenses include but are not limited to:

SHIP Quality Reporting HCAHPS Quality Improvement Training
Telehealth Platforms (Excluding Provider Fees) Disease Registries Population Health Databases
ACO Subscriptions or Fees ICD-10/11 Software Subscriptions  

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."

 

 

Allowable investment

Supplies (Definition)

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.

Definition

Surveys and Assessments (Excluding HCAHPS)

Unallowable

Updated January 2023

Costs associated with conducting surveys and assessments (including overhead, fees, payments, contractors, etc.) are unallowable.

Some unallowable examples include but are not limited to:

Community Health Needs Assessment(s) (CHNA) Outpatient Surveys EDCAHPS
Hospital Finance Assessments Mock Audits (Including RHCs)  

Note: This category is consistently under review, and we encourage SHIP Coordinators to email SHIP-TA@ruralcenter.org and copy your PO with questions or concerns. 

 

Unallowable investment

Swing Bed Software and Web Applications

Allowable
Accountable Care Organization (ACO)

Updated January 2023

Software and web applications that facilitate swing bed services are allowable uses of SHIP Funds.

Allowable investment

Telehealth Application and Implementation

Allowable

Updated January 2023

Training, hardware, and software supporting the application and implementation of telehealth services (telemedicine, remote healthcare, telepharmacy, etc.) are allowable expenses

Examples of allowable expenses may include but are not limited to: 

Computers Telehealth Software Carts (For Free Movement of Telehealth Hardware)
Cameras Microphones Wires, Connections, and Cables

*Computers, iPads, and Tablets used for other purposes are unallowable. Hospitals must use them for telehealth applications and implementation. 

Costs associated with diagnosis, treating, and stabilizing a patient through telehealth options are unallowable expenses. Example: The hospital can purchase a camera, but is not allowed to pay the tele-physician's fees for treatment.

Note: Telecommunication training, hardware, and software are unallowable. This is defined as supplies or equipment that provide communication aid but not patient care/efficiency. An example would be a Zoom subscription for staff meetings.

See also: CAH Telehealth Guide

 

Allowable investment

Training (Definition)

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.

Definition

Training (Hardware/Software/Services)

Allowable
Accountable Care Organization (ACO)
Payment Bundling (PB)/Prospective Payment System (PPS)
Value-Based Purchasing (VBP) Investment

Updated August 4, 2022

Training concerning an approved SHIP category/sub-category is allowable. This includes costs associated with hardware, software, trainer (SME), and supplies (such as training manuals).

Training should not include tests, testing, certification, accreditation, credentialing, or any associated costs. Some training will conclude with a knowledge test for "training completion." This is allowable so long as it is not for certification, accreditation, or credentialing. 

Conference fees need to be pre-approved by a PO. Please send the request with a copy (or link) of the conference agenda to your PO and SHIP-TA. 

Examples of allowable training expenses include but are not limited to: 

Provider-Based Clinic Quality Measure Training CPOE Implementation Training Alternative Payment Model Training
Quality Payment Program Training Disease Registry Training Population Health Training
Social Determinants of Health Screening Training Systems Performance Training in Support of ACO or Shared Savings Initiatives Mobile Health and Telehealth Software Training 
Community Paramedicine Hardware and Software Health Information Technology Training for VBP and ACO ICD-10 Software and Training
S-10 Cost Report Training Price Transparency Training 340B Drug Pricing program Training
Billing and Coding Training Strategic Planning Development and Implementation Mid-Level Manager Training
Value Based Care    

Supplies associated with training(s) are allowable. Such supplies may include, but are not limited to, staff-use training whiteboards, training manuals, training books, training modules, and other necessary-to-the-efficiency supplies. 

Note: Training for direct-patient care is unallowable. Examples of unallowable training would be CPR training, wound care, medical treatments, and training on medical equipment. It is important to note that medical or direct-patient care training that benefits a SHIP category (such as patient safety) is still unallowable.

Allowable investment

Training Travel and Lodging Expenses (Vendor)

Allowable

Updated January 2023

Travel and lodging costs for vendors, contractors, or a subject matter expert (SME) to travel to and from SHIP-approved training are allowable. The hospital or network should request an invoice with all related training costs (including time, travel, and lodging) bundled as one single deliverable.

NOTE: SHIP Guidance doesn't approve travel for hospitals and state offices.

 

Allowable investment

Transferring Unused SHIP Funds to Another Participating Hospital

Unallowable

Updated May 2022

Unused SHIP funds cannot be transferred to another participating hospital.

Unallowable investment

Voice Recognition System for Dictation

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

Voice recognition system for dictation to support increased quality, efficiency, and/or coding is an allowable use of SHIP funds.

Allowable investment