Allowable Investments Search Tool

In general, SHIP allowable investments include activities to assist small rural hospitals with their quality improvement efforts and with their adaptation to changing payment systems through investments in hardware, software and related trainings. This includes aiding with value and quality improvement.

Unallowable investments include, but are not limited to, travel costs, hospital services, hospital staff salaries, or general supplies. Hospitals should contact their State Office of Rural Health (SORH) with questions regarding the appropriateness or fit of a certain activity or hardware/software purchase. For additional clarifications, refer to Frequently Asked Questions (FAQs).

This tool classifies a number of example investment activities as Allowable, Unallowable, or PO Pre-Approval. This is not a comprehensive list. It is only intended to provide examples of allowable SHIP activities.

Price Transparency Contractors
Unallowable

Payment to contractors for Price Transparency compliance in review and/or update of charges does not qualify as a SHIP allowable investment.

Price Transparency Training
Allowable
Payment Bundling (PB)

Training on revenue cycle management to improve processes that provide clear information about charges and costs including topics such as Chargemasters and price transparency is an allowable investment.

Hospital Pricing Transparency
Allowable
Payment Bundling (PB)

Hospital pricing transparency training, software, and hardware are allowable uses of SHIP funds.

Please note: Pricing transparency subscription fees can be covered under SHIP for the first year, but SHIP funds should not be used to cover a hospital’s operational cost year after year. Regarding using funds to pay for consultant or vendor to build a price transparency software, this is NOT allowable. SHIP funds can cover for price transparency training of staff for any software or website done by a consultant, but they cannot cover website development time.

Efficiency or Quality Improvement Training in Support of ACO or Shared Savings Related Initiatives
Allowable
Accountable Care Organization (ACO)

Quality improvement training such as the IHI Plan-Do-Study-Act (PDSA), Root Cause Analysis (RCA), TeamSTEPPS, Lean Process planning, Community Care Coordination and Chronic Care Management, CMS Abstraction & Reporting Tool, and other efficiency and quality improvement trainings are allowable investments.

Systems Performance Training in Support of ACO or Shared Savings Related Initiatives
Allowable
Accountable Care Organization (ACO)

Systems performance training, including adopting a framework approach to transition to value-based system planning, is an allowable investment.

ACO Fees
Allowable
Accountable Care Organization (ACO)

ACO fees are an allowable investment under the ACO category, as long as the hospital identifies how they will define progress to align with the state office’s SHIP goals.

ICD-10 Training
Allowable
Payment Bundling (PB)

Any training to support coding and reimbursement, documentation, or documentation improvements that result in increased coding compliance are allowable.

340B Drug Pricing Program Training
Allowable
Payment Bundling (PB)

A 340B Drug Pricing Program training intended to increase efficiency or quality improvement in support of Prospective Bundling and Prospective Payment Systems initiatives is an allowable investment.

Health Information Technology (HIT)
Allowable
Accountable Care Organization (ACO)

HIT hardware, software, and training are allowable uses of SHIP funds. Through SHIP, it would also be beneficial to include risk assessments and/or trainings associated with cybersecurity.

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, $1,009,121 (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.