Small Rural Hospital Improvement Grant Program

The Small Rural Hospital Improvement Program supports eligible small rural hospitals in meeting value-based payment and care goals for their respective organizations through purchases of hardware, software, and training.

The State Office of Rural Health (SORH) will be the official award recipient acting as fiscal intermediary for all eligible hospitals within its state. Each SORH will be charged with organizing the distribution of funds to eligible hospitals. Eligible hospitals within the territories that do not have access to a SORH apply to the SHIP program individually. Tribally operated hospitals under Titles I and V of P.L. 93-638 are eligible to apply.

Small rural hospitals must meet the following eligibility requirements in order to be eligible for SHIP funds:

1) “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 fewer, 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 a 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. 1395ww(d)(8)(E); and,

3) Eligible small rural hospitals may be for-profit or not-for-profit, including faith-based. Hospitals in U.S. territories as well as tribally operated hospitals under Titles I and V of P.L. 93-638 are eligible to the extent that such hospitals meet the above criteria.

Notification is made in writing by a Notice of Award (NOA).

Up to six months.