The Small Rural Hospital Improvement Grant Program (SHIP) is coordinated through the Health Resources and Services Administration's Federal Office of Rural Health Policy (FORHP). SHIP provides funding to more than 1,600 participating hospitals in 47 participating State Offices of Rural Health (SORH) to help small rural hospitals participate in various Affordable Care Act (ACA) delivery system reforms, such as value-based purchasing programs, accountable care organizations and payment bundling.
The three key focus areas of SHIP activities include the following:
- Value-Based Purchasing (VBP) investment activities that support improved data collection to facilitate quality reporting and improvement
- Accountable Care Organizations (ACO) or Shared Savings investment activities that support the development or basic tenets of ACOs or shared savings programs
- Prospective Payment System (PPS) or Payment Bundling (PB) investment activities that improve hospital financial processes
Eligible small rural hospitals are located in the United States and its territories and include hospitals with 49 available beds or less. These small rural, non-federal hospitals provide short-term, general acute care to their communities. They may be for-profit, not-for-profit or tribal organizations. Critical access hospitals are eligible for the program.
SHIP is authorized by Section 1820(g)(3) of the Social Security Act, amended by section 3129 of the ACA. SHIP was first authorized by the Balanced Budget Refinement Act of 1999 of the Social Security Act to help small rural hospitals meet the costs of implementing data systems required to meet requirements of the Medicare Prospective Payment System. Funding for this program was first provided by the Labor/Health and Human Services (HHS) Appropriations Act for fiscal year (FY) 2002, in which conference report language expanded the purpose of this grant program to also help small rural hospitals comply with provisions of the Health Information Portability and Accountability Act (HIPAA) and reduce medical errors while supporting quality improvement.
National SHIP Funding Information
SHIP Hospitals Map [PDF - 1.75 MB]
SHIP Hospital Use of Funds by Category [PDF - 221.52 KB]
Use of Accountable Care Organization (ACO) Funds [PDF - 185.31 KB]
Use of Prospective Payment System (PPS)/Payment Bundling (PB) Funds [PDF - 185.87 KB]
Use of Value-Based Purchasing (VBP) Funds [PDF - 182.92 KB]