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SHIP Funding Updates and Recommendations
Hospitals must first meet SHIP funding priorities before using resources to support investments in other areas. SHIP funding priority areas include:
- SHIP funds should be prioritized by participating Critical Access Hospitals (CAH) in the following manner, one or both, in no particular order:
a) Hospitals must meet MBQIP (see https://www.hrsa.gov/rural-health/rural-hospitals/mbqip and MBQIP Fundamentals Guide for State Flex Program, MBQIP Measures) participation requirements in order to improve hospital quality outcomes. Non-federal tribal hospitals may use another culturally sensitive federally managed measure of hospital quality outcomes.
b) ICD-11 coding readiness and/or implementation activities.
If a CAH has implemented both MBQIP and ICD-11 activities, then that hospital may select a different activity listed on the SHIP Allowable Investments contained within the hospital application. SHIP funds for non-CAHs should be prioritized in the following manner:
a. ICD-11 coding readiness and/or implementation activities
If a Prospective Payment System hospital has implemented ICD-11 activities then that hospital may select a different activity on the SHIP Allowable Investments.
If a CAH or non-CAH (PPS hospital) is currently using all hardware, software, equipment, and/or trainings listed on the SHIP Allowable Investments the hospital may select an alternative hardware, software, equipment, and/or training provided:
1) the purchase will optimally affect the hospital’s ability to transform its practice and participate in a Medicare Shared Savings Program or an ACO, increase value-based purchasing objectives, aid in the adoption of ICD-11, and/or support care transitions/coordination. Hospitals are encouraged to align SHIP purchases in ways that ensure the consistent and systematic fair, just, and impartial treatment of all patients by addressing Social Determinants of Health (SDOH) to improve the quality of healthcare provided; and
2) The hospital receives permission from both its SORH SHIP Director if in a state and the state/territory’s SHIP Director’s FORHP Project Officer.
The FY 2023 Allowable Investment Menu below is not a complete list and is only intended to provide examples of allowable SHIP activities. For additional clarification, refer to the SHIP Allowable Investments Search Tool and Frequently Asked Questions (FAQs).
For more information or for additional support, please contact the SHIP Technical Assistance Team at firstname.lastname@example.org
 Social determinants of health (SDOH) are the conditions in the environments where people are born, live, learn, work, play, worship, and age that affect a wide range of health, functioning, and quality-of-life outcomes and risks. https://health.gov/healthypeople/priority-areas/social-determinants-health
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This project is/was supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) under grant number UB1RH24206, Information Services to Rural Hospital Flexibility Program Grantees, $1,100,000 (0% financed with nongovernmental sources). This information or content and conclusions are those of the author and should not be construed as the official position or policy of, nor should any endorsements be inferred by HRSA, HHS or the U.S. Government.