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.

Architecture Design or Drafting Consulting Fees
Unallowable

Architecture design and/or drafting consulting costs or fees do not qualify as a SHIP Allowable Investment. Consulting fees of any kind are not allowable unless they are part of education and training.

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.

Mobile Health and Telehealth Hardware/Software
Allowable
Accountable Care Organization (ACO)

Training hardware or software that supports the application and implementation of telehealth and/or telemedicine is an allowable investment.

Mobile Language Line Workstation for Interpretation Services
PO Pre-Approval
Accountable Care Organization (ACO)

Mobile language line workstations, iPads, and tablets can potentially be allowable SHIP investments if used by hospital staff to support operational efficiency and increase equitable patient satisfaction.

Note: These investments require Project Officer pre-approval. If a hospital is interested in this investment, the State SHIP coordinator should email their project officer with justification of how these services will support operational efficiency and increase equitable patient satisfaction.

Stethoscopes
Unallowable

Stethoscopes that are manual, Bluetooth enabled, or telehealth purposed are not an allowable use of SHIP funds. 

Portable Equipment (for COVID-19)
Allowable
SHIP ARP COVID-19 Testing & Mitigation

Portable equipment (such as a portable x-ray machine) that is used to prevent patients from being moved throughout a facility and to mitigate the spread of COVID-19.

Ventilators
Unallowable
SHIP ARP COVID-19 Testing & Mitigation

Costs associated with purchasing, maintaining, or operating ventilators or other similar equipment which allows for respiratory assistance (considered direct patient care).

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.

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.