Frequently Asked Questions
Questions and answers are arranged into six topic areas. You can browse questions or select a link below to jump directly to questions related to a specific topic.
If you can’t find the information you’re looking for, please contact the SHIP Technical Assistance Team at ship-ta@ruralcenter.org.
- Program Basics and Eligibility Requirements
- Program Priorities
- ICD-11 Readiness
- SHIP Coordinator Guidance: Budget
- SHIP Coordinator Guidance: Hospital Applications
- Examples of Training and/or Investment Activities
Program Basics and Eligibility Requirements
- What is SHIP?
- Should we use HRSA’s Rural Health Grants Eligibility Analyzer for rural designation?
- How do hospitals apply for SHIP funding?
- When do we apply through grants.gov?
- Who has been awarded SHIP Funding?
- Who is eligible for SHIP?
- Which states participate in SHIP?
- What is the SHIP application and award process?
- How do hospitals qualify as rural?
- Can SHIP hospitals, affiliated with large health system and who no longer file cost reports, attest that they are still operating with 49 beds or less?
- Can hospitals be eligible for SHIP if they have more than 49 beds on their hospital cost report but actually staff 49 beds or less?
- Can a SHIP-eligible hospital affiliated with a large hospital system, use the combined cost report information for the system?
- What is the specific language in the Guidance for how SHIP funds can be used?
- If two or more rural hospitals with 49 beds or less each are merged under a single tax ID such that the bed count is now combined and over 49, are the hospitals still eligible?
- Can Rural Emergency Hospitals (REH) apply for SHIP?
Program Priorities
- What are the priorities for FY24?
- What are the priorities for FY 2025?
- Are hospitals allowed to use "real-time surveys" instead of HCAHPS?
- Are hospitals still allowed to use SHIP funds to pay the recurring costs for HCAHPS and ICD-10 vendors?
- What is the best way to determine whether a hospital has fully implemented HCAHPS and is reporting to Hospital Compare?
- What does a hospital need to do to get our HCAHPS scores displayed on Hospital Compare?
- Does our HCAHPS vendor have to be CMS certified?
- What if a hospital has completed the necessary steps to ensure their HCHAPS data appears on Hospital Compare, but due to low volumes, the data is suppressed? Is the hospital allowed to choose an additional investment activity from the SHIP Purchasing Menu?
- Can states continue to do HCAHPS activities so that PPS hospitals continue to participate?
ICD-11 Readiness
- What is ICD-11 Readiness?
- What are some examples of allowable SHIP activities related to ICD-11 Readiness?
SHIP Coordinator Guidance: Budget
- Does the same amount of funding have to be provided to all hospitals?
- SHIP funds were used for a different category than what the hospital initially asked for so what should I do?
- Can SHIP funds be used to support provider-based rural health clinic (RHC) investments?
- Can a hospital spend leftover money on another activity on the SHIP purchasing menu within the project year?
- What can the SORH do if hospitals do not spend all funds?
- What expenses are unallowable for states?
- Can state SHIP staff salaries be paid with SHIP funds?
- Can indirect costs be included in the SHIP budget?
- Is the indirect cost included with or in addition to the amount per hospital?
- If not taking any indirect, do we still have to include the indirect cost agreement?
- Is there a limit to the personnel costs percentage-wise?
- Do hospitals have to allocate 100% of funds to one category?
- Can hospital staff salaries be paid with SHIP funds?
- Can travel be paid for with SHIP funds?
- Is it possible for hospitals to pool SHIP funds on a shared activity?
SHIP Coordinator Guidance: Hospital Applications
- What are the SHIP Allowable Investments?
- Can the SORH alter the hospital application to include more questions or requirements?
- Are states required to submit individual hospital applications to FORHP or do they keep them on file again?
- On the Grant Guidance page, there are two forms of the application: Hospital Application A and Hospital Application B. What is the difference between hospital application A and hospital application B?
- Are electronic signatures acceptable for the hospital applications?
- Are there electronic versions of the hospital application templates that State SHIP Programs can use to send to their hospitals?
- The hospital application requires that hospitals agree to select investments for which they will be able to demonstrate measurable outputs/outcomes and to report those measures and progress to the SORH upon request and at the end of the program year. What kinds of measures should the hospitals be tracking and what is the SORH supposed to do with that information?
- How many years are we required to hold the Hospital SHIP applications on file?
- Are hospitals allowed to change their investment after they have submitted their application?
- How is hospital bed count determined?
- Are the detox beds included on line 14 of the cost report?
- What methodology will we need to use to summarize the network/consortia activities for the Special Innovations Project?
- What is the difference between an ACO and a Medicare Shared Savings Program (MSSP)?
- Can I change the prepopulated Budget Total under Section A: Budget Summary and Section B: Budget Category in Electronic Hand Books (EHB)?
Examples of Training and/or Investment Activities
- What are examples of activities for the investment option (C) under the category VBP: Efficiency or quality improvement training in support of VBP initiatives?
- What are examples of activities for the investment option (E) under the category ACO or Shared Savings: Efficiency or quality improvement training in support of ACO/Shared Savings initiatives?
- What are examples of activities for the investment option (F) under the category ACO or Shared Savings: Systems performance training?
- What are examples of activities for the investment option (C) under the category PB/PPS: Efficiency or quality improvement training in support of PB/PPS initiatives?
- Can SHIP funds be used to pay for a consultant to help them improve quality or pay for a consultant to help them develop the pricing transparency website?
- Can SHIP funds be used to cover yearly subscription costs for price transparency software?
- Can SHIP funds be used for subscriptions?
Program Basics and Eligibility Requirements
SHIP, the Small Rural Hospital Improvement Program, is supported by the Health Resources and Services Administration’s (HRSA) Federal Office of Rural Health Policy (FORHP). Through SHIP, small rural hospitals that meet certain eligibility requirements are able to apply for funding to assist in the implementation of activities related to:
- Value-Based Purchasing (VBP)
- Accountable Care Organizations (ACOs)/Shared Savings
- Payment Bundling (PB)/Prospective Payment System (PPS)
SHIP is authorized by section 1820(g)(3) of the Social Security Act.
Should we use HRSA’s Rural Health Grants Eligibility Analyzer for rural designation?
Yes. Use HRSA's Rural Health Grants Eligibility Analyzer to verify hospital and rural designation.
How do hospitals apply for SHIP funding?
Direct federal funding for SHIP is secured through SORHs in states with eligible hospitals. States solicit applications from their SHIP-eligible hospitals. Eligible hospitals within territories that do not have access to a SORH must apply to the SHIP program individually and should contact the FORHP SHIP Program Coordinator.
When do we apply through grants.gov?
During the Competing Continuation or new SHIP cycle, the SORH applies in grants.gov and will be the official award recipient acting as fiscal intermediary for all eligible small rural hospitals within its state. Each SORH submits an application on behalf of the eligible hospital applicants in its state. Small rural hospitals interested in SHIP funding should contact their SORH: https://nosorh.org/nosorh-members/nosorh-members-browse-by-state/.
However, eligible hospitals within the territories that do not have access to a SORH must apply to SHIP individually and should contact the SHIP Program Coordinator before applying in grants.gov.
Who has been awarded SHIP Funding?
A current list of SHIP recipients can be found on the HRSA Data Warehouse.
Eligible small rural hospitals are non-federal, short-term general acute care facilities located in a rural area of the United States and the territories, including faith-based hospitals. They may be for-profit, not-for-profit or tribal organizations.
1) "Eligible small rural hospital" is defined as a non-Federal, short-term general acute hospital that: (i) is located in a rural area as defined in 42 U.S.C1395ww(d) and (ii) has 49 available beds or less, as reported on the hospital's most recently filed Medicare Cost Report;,
2) "Rural area" is defined as either: (1) located outside of a Metropolitan Statistical Area (MSA); (2) located within a rural census tract of an MSA, as determined under the Goldsmith Modification or the Rural-Urban Commuting Areas (RUCAs) or (3) is being treated as if being located in a rural area pursuant to 42 U.S.C. 1395(d)(8)(E); and,
3) Eligible SHIP hospitals may be for-profit or not-for-profit, including faith-based. Hospitals in U.S. territories as well as tribally operated hospitals under Title I. and V. of P.L. 93-638 are eligible to the extent that such hospitals meet the above criteria.
Which states participate in SHIP?
All states participate in SHIP, except Delaware, New Jersey, Connecticut, and Rhode Island.
What is the SHIP application and award process?
SORHs submit a grant application to FORHP on behalf of eligible hospital applicants in their state. The SORH is the official grantee of record and serves as the fiscal intermediary for all eligible hospitals within the state. The SORH collects signed hospital applications, verifies hospital eligibility, submits funding request documents to HRSA, receives the federal funds, makes subawards to eligible hospitals or vendors, and ensures appropriate use of funds. At the end of the grant period, the SORH submits a financial report to the HRSA Division of Grants Management Operations (DGMO) and an administrative report to document hospitals’ activities to FORHP. Eligible hospitals within territories that do not have access to a SORH must apply to SHIP individually and should contact the FORHP SHIP Program Coordinator.
How do hospitals qualify as rural?
Hospitals can qualify as rural — even though they are not located in non-metro counties or eligible census tracts — by being designated as rural, either by statute or regulation by their state government. All critical access hospitals (CAHs) are rural by definition and qualify for SHIP participation.
Can SHIP hospitals, affiliated with large health system and who no longer file cost reports, attest that they are still operating with 49 beds or less?
Yes, the hospital administrator can attest to the number of beds.
Can hospitals be eligible for SHIP if they have more than 49 beds on their hospital cost report but actually staff 49 beds or less?
Yes, if a hospital reports a licensed bed count greater than 49, but staffs 49 beds or fewer, eligibility may be certified by submitting a written statement to their SORH that includes: 1) the number of staffed beds at the time of the most recent cost report submission; 2) the cost reporting period of the most recently filed cost report and; 3) the signature of the certifying official of the hospital. The staffed number is reported on the Administrative Report in DCP.
Can a SHIP-eligible hospital affiliated with a large hospital system, use the combined cost report information for the system?
Yes, hospitals can submit an attestation from the CEO or CFO indicating they are operating at 49 beds or less.
What is the specific language in the guidance for how SHIP funds can be used?
This program supports eligible hospitals in meeting value-based payment and care goals for their respective organizations, through purchases of hardware, software and training. SHIP also enables small rural hospitals: to become or join an ACO; to participate in shared savings programs; and to purchase health information technology (hardware and software), equipment, and/or training to comply with quality improvement activities, such as advancing patient care information, promoting interoperability, and payment bundling.
If two or more rural hospitals with 49 beds or less each are merged under a single tax ID such that the bed count is now combined and over 49, are the hospitals still eligible?
If the merger occurs under a single tax ID and the result is 50 beds or more, the hospitals would be ineligible for SHIP funding.
Can Rural Emergency Hospitals (REH) apply for SHIP?
No, converted REHs are not eligible for SHIP Funding. According to Section 1820(g)(3) of the Social Security Act (42 U.S.C. 1395i-4), an "eligible small rural hospital" refers to a non-Federal, short-term general acute care hospital. CMS defines an acute care hospital as a facility that provides inpatient medical care and related services. Since REHs lack inpatient services, they do not meet the criteria for acute care hospitals and are therefore ineligible for SHIP funding.
To ensure compliance, State Offices of Rural Health (SORHs) should continuously monitor the designations of participating hospitals throughout the performance period. If a hospital converts after the annual application but before subawards are executed, the SORH should not allocate funds. The SORH's SHIP Coordinator should promptly inform their SHIP PO to discuss fund management in such cases. If a hospital converts after the SORH has awarded funds, the facility may utilize and spend the funds within the current project year, but will not be eligible for future funding.
Program Priorities
What are the priorities for FY 2024?
SHIP funds should be prioritized by participating CAHs in the following manner:
- Hospitals must meet MBQIP (more information on MBQIP can be found here) 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.
- ICD-11 coding readiness and/or implementation activities.
CAHs that have implemented both MBQIP and ICD-11 activities may select a different activity listed on the SHIP Allowable Investments page contained within the hospital application.
SHIP funds for PPS hospitals (non-CAHs) should be prioritized in the following manner:
PPS hospitals that have implemented ICD-11 activities may select a different activity on the SHIP Allowable Investments page.
What are the priorities for FY 2025?
SHIP funds should be prioritized by participating CAHs in the following manner:
- Hospitals must meet MBQIP (more information on MBQIP can be found here) 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.
CAHs that have implemented MBQIP activities may select a different activity listed on the SHIP Allowable Investments page contained within the hospital application.
Given the current progress of IDC-11 adoption in the U.S., the ICD-11 readiness priority requirement is waived in FY 2025 and until further notice.
Are hospitals allowed to use "real-time surveys" instead of HCAHPS?
No, SHIP hospitals cannot invest funds in real-time surveys in lieu of HCAHPS. HCAHPS vendors need to be CMS-certified.
Are hospitals still allowed to use SHIP funds to pay the recurring costs for HCAHPS?
Yes, HCAHPS costs could be selected in order to facilitate the Patient Engagement core MBQIP measures.
HCAHPS-related activities remain on the Allowable Investment Menu and all hospitals may continue to select activities within these categories. In FY 20204, PPS hospitals may choose HCAHPS activities if ICD-11 coding readiness and/or implementation activities are also occurring or completed.
What is the best way to determine whether a hospital has fully implemented HCAHPS and is reporting to Hospital Compare?
"Fully implemented" means that hospitals are reporting to Hospital Compare for at least one quarter during the most recent SHIP budget period.
What does a hospital need to do to get our HCAHPS scores displayed on Hospital Compare?
If a hospital is using a vendor for HCAHPS, the vendor should be able to walk the hospital through the process of ensuring all the necessary pieces are in place to allow data to appear on Hospital Compare. This will include at a minimum completing a vendor authorization and the Hospital Inpatient Quality Reporting Notice of Participation, both through QualityNet.
Does our HCAHPS vendor have to be CMS certified?
Yes, your HCAHPS vendor must be CMS-certified.
What if a hospital has completed the necessary steps to ensure their HCHAPS data appears on Hospital Compare, but due to low volumes, the data is suppressed? Is the hospital allowed to choose an additional investment activity from the SHIP Purchasing Menu?
Yes, so long as the hospital has taken all of the necessary steps to ensure HCAHPS data appears on Hospital Compare, the hospital can select an additional investment from the SHIP Purchasing Menu.
Can states continue to do HCAHPS activities so that PPS hospitals continue to participate?
Yes, HCAHPS-related activities remain on the Allowable Investment Menu and all hospitals may continue to select activities within these categories. In FY 2024, PPS hospitals may choose HCAHPS activities if ICD-11 coding readiness and/or implementation activities are also occurring or completed.
ICD-11 Readiness
ICD-11 readiness does not mean "implementation." Readiness implies steps to ensure a plan is in place for implementation later. FORHP would like all small rural hospitals to prepare for the ICD-11 rollout to the best of their abilities. SHIP funding priorities are based on needs through May 2028 to implement quality and operational improvement efforts to align with value-based care. ICD-10 was a priority in the 2019 NOFO, and ICD-11 is a continuation of that priority in hopes that hospitals will have more time to implement plans and training. ICD-11 will most likely be implemented in the middle of this grant cycle (FY23-FY27, up to May 2028) so having a plan for later SHIP fund use is essential.
What are some examples of allowable SHIP activities related to ICD-11 readiness?
Examples of SHIP allowable expenses that can be used for ICD-11 readiness include:
- Computer software upgrades - operating systems or specific coding systems - to support a future transition to ICD-11.
- Computer hardware that improves quality, efficiencies, and coding.
- Transition to an online coding system that automatically makes ICD-11 available when appropriate.
- Upgrading or implementing telehealth software and hardware to take advantage of new/updated ICD-11 codes for telehealth/telemedical services.
- Social determinants of health and population health training (with the intent to use new ICD-11 or Z-codes).
- Efficiency or quality improvement training to train staff on implementing ICD-11 plans and initiatives to minimize the impact on patients and staff.
- Revenue Cycle Management training.
- Trainings that update and computerize hospital policies and procedures to prepare for ICD-11.
Compliance with the ICD-11 priority may be as simple as identifying an existing expense as one that can be used for ICD-11 readiness.
SHIP Coordinator Guidance: Budget
Does the same amount of funding have to be provided to all hospitals?
Yes, all hospitals must receive the same amount of money. Pooling of funds in the form of networks or consortia is encouraged as a way to increase the purchasing power of hospitals pursuing similar activities. Funds (part or all) cannot be transferred to another participating hospital.
SHIP funds were used for a different category than what the hospital initially asked for so what should I do?
Remind the hospital of their agreement, monitor, and evaluate progress and the likelihood of it happening again and if it does, exclude them from future participation. They should seek prior approval from their SHIP Coordinator/SORH before changing activities.
Can SHIP funds be used to support provider-based rural health clinic (RHC) investments?
Yes, SHIP funds can be used to support RHC investments if they are aligned with the SHIP menu. Additional guidance and examples of RHC investments are provided in the SHIP Allowable Investments.
Can a hospital spend leftover money on another activity on the SHIP purchasing menu within the project year?
Hospitals that have realized a cost savings can spend leftover funds on other SHIP investments within the project year. The SORH must approve any change in use of funds.
What can the SORH do if hospitals do not spend all funds?
SORHs should contact their FORHP Project Officer for guidance. Note that carryover prior approval requests are only approved for hospitals to continue activities that were delayed during the project year, not new activities. Funds (part or all) cannot be transferred to another participating hospital.
What expenses are unallowable for states?
“Travel,” “Equipment,” “Supplies,” “Construction,” and “Other” are not allowable expenses for states.
Can state SHIP staff salaries be paid with SHIP funds?
Yes, salaries, wages, and fringe costs are allowed only for award oversight; this does not include hospital personnel. Remember, state SHIPs are a pass-through for hospital improvement, so budgets will be scrutinized for reasonable state costs.
Can indirect costs be included in the SHIP budget?
Yes, indirect costs up to the lesser of 15% of the award total or the state’s federally negotiated indirect rate can be allocated for SORHs.
Is the indirect cost included with or in addition to the amount per hospital?
All costs, including indirect costs, must be deducted from the award total. Budgets for more than the number of participating hospitals multiplied by the amount per hospital (the maximum allowable), will not be considered.
If not taking any indirect, do we still have to include the indirect cost agreement?
No, the indirect cost rate agreement is not required if you are not taking indirect costs.
Is there a limit to the personnel costs percentage-wise?
See Section 4.1.iv Budget – Salary Limitation of HRSA’s SF-424 Application Guide for additional information. There are no SHIP-specific limitations beyond HRSA’s requirements.
Do hospitals have to allocate 100% of funds to one category?
No, hospitals may split funding between different SHIP Investments categories.
Can hospital staff salaries be paid with SHIP funds?
No, SHIP funds cannot be used for salaries at the hospital.
Can travel be paid for with SHIP funds?
SHIP funds may be used to cover travel where specifically approved as part of the vendor's training costs. SHIP funds may not be used to cover travel costs for states or hospital staff.
Is it possible for hospitals to pool SHIP funds on a shared activity?
Yes, pooling SHIP funds among hospitals is a great way to make an efficient use of resources. The SORH must be involved in establishing any such projects.
SHIP Coordinator Guidance: Hospital Applications
What are the SHIP Allowable Investments?
In 2013, in order to ensure effective use of SHIP funding and increase program integrity, FORHP instituted a SHIP Allowable Investments from which eligible SHIP hospitals select investments. Investment activities are broken into three categories: Value-Based Purchasing (VBP), Accountable Care Organizations (ACOs)/Shared Savings and Payment Bundling (PB)/Prospective Payment System (PPS). Activity priorities are set each year based on current industry trends.
Can the SORH alter the hospital application to include more questions or requirements?
Yes, as long as all the information included in Applications Form A and/or B is gathered, the form can be altered to meet state needs. This includes requiring hospitals to submit additional documentation needed at the state level.
Are states required to submit individual hospital applications to FORHP or do they keep them on file again?
States should keep hospital applications on file. As part of integrity oversight and monitoring, FORHP may randomly ask states to provide signed applications.
On the Grant Guidance page, there are two forms of the application: Hospital Application A and Hospital Application B. What is the difference between Hospital Application A and Hospital Application B?
Hospital Application A is the short-form version which can be used if the state already has the hospitals’ information (address, contact information, hospital type, and beds) from prior reporting/applications. Hospital Application B is the long-form version which should be used for hospitals that have changed information or newly eligible and participating hospitals. Either application can be used as long as the state grantee collects a signed attestation to participation and provides all of the necessary information for the administrative reports in DCP.
Are electronic signatures acceptable for the hospital applications?
FORHP has indicated that electronic signatures are acceptable from their perspective. SORHs will want to ensure their application process aligns with any state requirements for signatures.
Are there electronic versions of the hospital application templates that State SHIP Programs can use to send to their hospitals?
Yes, the SHIP TA team creates an electronic version of the hospital application templates that can be sent upon request to states who have their own SurveyMonkey subscription. If you would like copies of the templates, please send a request to ship-ta@ruralcenter.org and be sure to include your SurveyMonkey username.
The hospital application requires that hospitals agree to select investments for which they will be able to demonstrate measurable outputs/outcomes and to report those measures and progress to the SORH upon request and at the end of the program year. What kinds of measures should hospitals be tracking and what is the SORH supposed to do with that information?
At this time there is no standard set of measures for SHIP investments; however, program integrity is of utmost importance and therefore state SHIPs are encouraged to maintain communication with their hospitals regarding use of their funds and outcomes from their SHIP activities. SORH’s can use this data to inform future projects at other hospitals and to identify opportunities for the pooling of resources to maximize SHIP investments.
How many years are we required to hold the SHIP hospital applications on file?
It is generally best practice to keep federal grant records for three years. Grantees may want to keep records for the entirety of the period of performance or according to their organizational policies.
Are hospitals allowed to change their investment after they have submitted their application?
State SHIP Coordinators have the discretion to determine if a change in investment can/should be made. In an effort to ensure program integrity, coordinators may want to monitor hospitals that make such requests closely. Some coordinators have implemented deadlines for hospital changes to investments. FORHP generally recommends that changes not be made after the mid-year point in the project year.
How is the hospital bed count determined?
For purposes of SHIP, hospitals report the number of beds on Line 14 of the Medicare Cost Report. If that number is 49 or less (staffed, not licensed), the hospital meets the bed count requirement to participate in SHIP. "Eligible small rural hospital" is defined as a non-Federal, short-term general acute care hospital that: (i) is located in a rural area as defined in 42 U.S.C. 1395ww(d) and (ii) has 49 available beds or less, as reported on the hospital’s most recently filed Medicare Cost Report. Cost report instructions define staffed beds as, "[t]he number of beds available for use by patients at the end of the cost reporting period. A bed means an adult bed, pediatric bed, birthing room, or newborn ICU bed (excluding newborn bassinets) maintained in a patient care area for lodging patients in acute, long term, or domiciliary areas of the hospital. Beds in labor room, birthing room, post anesthesia, post‐operative recovery rooms, outpatient areas, emergency rooms, ancillary departments, nurses' and other staff residences, and other such areas which are regularly maintained and utilized for only a portion of the stay of patients (primarily for special procedures or not for inpatient lodging) are not termed a bed for these purposes.” Source: Cost Report Data Dictionary
Are the detox beds included on line 14 of the cost report?
Per CMS, a bed is included if it is, “maintained in a patient care area for lodging patients in acute, long term, or domiciliary areas of the hospital.” If the detox beds are part of the hospital licensure and are available for acute care PPS, then the beds are included on line 14, column 2 on Worksheet S-3 Part 1. If the detox beds are custodial beds and not available for acute care, then they are in a non-reimbursable cost center and not included in line 14. If the detox beds are a distinct part unit (DPU) and not available for acute care, then they have a separate sub-provider number and the beds are reported below line 14.
What is the difference between an ACO and a Medicare Shared Savings Program (MSSP)?
To be eligible for the Medicare Shared Savings Program (MSSP), an ACO must agree to participate for a period of no less than five years and coordinate care for beneficiaries, measure & improve quality, publicly report performance results, receive annual financial & quality performance results, among other requirements. For more information, visit CMS’ Shared Savings Program, About the Program, and Program Guidance & Specifications websites.
Can I change the prepopulated Budget Total under Section A: Budget Summary and Section B: Budget Category in Electronic Handbooks (EHB)?
You may have encountered an error while trying to change the prepopulated Budget Total under Section A: Budget Summary and Section B: Budget Category on your NCC. If your program's number of hospitals has changed - increased or decreased - from the previous NOA, EHB shows an error and will not allow altering the total amount.
To bypass this issue, please leave the Total Amount that is listed on Section A and B as is. On the next section, the Budget Narrative Section, you are required to attach a line-item budget breakdown with a detailed explanation of costs for the upcoming FY. Include on the attachment your new total, and number of hospitals x the amount per hospital, with the correct breakdown for the budget cycle. For example, if you need to make changes to the indirect or personnel line item due to a reduction in the number of hospitals, include a budget breakdown and justification for each category based on the number of hospitals you now have.
When reviewing your NCCs, your PO will make the appropriate changes using the information in your submission to reflect the changes on your NOA. Additionally, please email your PO if you have experienced this issue.
Examples of Training and/or Investment Activities
Many of the investment options on the SHIP Allowable Investments: Spending Categories page are self-explanatory, while a few are more general in nature. The Allowable Investments Search Tool is recommended to check activities or search a broad list of Allowable Activities by SHIP Category. This tool classifies example investment activities as Allowable, Unallowable, or PO Pre-Approval. Hospitals should contact their SORH with questions regarding the appropriateness or fit of a certain activity. SORHs with similar questions should contact the appropriate FORHP Project Officer and/or the SHIP TA team.
What are examples of activities for the investment option (C) under the category Value-Based Purchasing (VBP): Efficiency or quality improvement training in support of VBP initiatives?
Consider adopting Six Sigma, Lean, Plan-Do-Study-Act, or other such efficiency or quality improvement processes to address performance issues related to VBP initiatives, such as the following:
- Patient experience of care
- Discharge planning
- Patient safety
- Reducing readmissions
- Antibiotic stewardship
- Immunization
- Hospital Safety Training & Emergency Preparedness
- Reducing Disparities in Readmissions
What are examples of activities for the investment option (E) under the category ACO or Shared Savings: Efficiency or quality improvement training in support of ACO/Shared Savings initiatives?
Consider Quality Improvement trainings such as the following:
- IHI Plan Do Study Act (PDSA)
- Root Cause Analysis (RCA)
- TeamSTEPPS and Lean Process planning
- CMS Abstraction & Reporting Tool
Consider other efficiency or quality improvement trainings or software to address performance issues related to the following:
- Medicare spending per beneficiary
- Non-clinical operations
- Swing-bed utilization and quality measures
- Care coordination
- Population health
- Health Information Exchange (with traditional and/or non-traditional partners)
- Social determinants of health
What are examples of activities for the investment option (F) under the category ACO or Shared Savings: Systems performance training?
Hospitals interested in systems performance training may want to consider adopting a framework approach in transitioning to value-based system planning, such as one of the following:
- Performance Excellence (PE) Blueprint based on Baldrige
- Strategy Map and Balanced Scorecard development
What are examples of activities for the investment option (C) under the category PB/PPS: Efficiency or quality improvement training in support of PB/PPS initiatives?
Consider training that improves processes through adoption of best practices and the transition to value-based payment strategies, such as the following:
- Financial improvement software or training
- Operational multi-hospital/network trainings
- 340B training
Can SHIP funds be used to pay for a consultant to help them develop the pricing transparency website?
Yes, SHIP funds may be used to support website development costs.
Can SHIP funds be used to cover yearly subscription costs for price transparency software?
Yes, SHIP funds may be used to pay for price transparency software subscriptions. . SHIP funds can also support price transparency training for hospital staff for any software or website done by a consultant.
Can SHIP funds be used for subscriptions?
Allowable subscription fees include but may not be limited to those for ongoing SHIP quality reporting, HCAHPS, quality improvement training, ICD-10 updates, telehealth platforms (not provider fees), disease registries, population health databases, and ACO fees. Unallowable subscriptions include bank fees; ongoing and on-demand or asynchronous trainings; and training unrelated to the SHIP Categories.
Library fees and services that are used strictly for SHIP training access or training manuals or guides and not for ongoing operational access can be an allowable use of SHIP funds but requires PO approval.