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Small Rural Hospital Improvement Program (SHIP) is sponsored by U.S. Department of Health and Human Services, Health Resources and Services Administration (HRSA), Federal Office of Rural Health Policy. This program supports eligible small rural hospitals in meeting value-based payment and care goals through purchases of hardware, software, and training.
It also assists hospitals in participating in delivery system reforms, such as joining Medicare Shared Savings Programs or Accountable Care Organizations, and purchasing health information technology and equipment to comply with quality improvement activities.
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Small Rural Hospital Improvement Program - HCAI Small Rural Hospital Improvement Program Application Cycle: CLOSED # Check back here for information regarding the next application cycle in December 2026. Small Rural Hospital Improvement Program (SHIP) grants provide support to small rural hospitals with implementation of delivery system changes.
Funds will benefit small rural hospitals and help ensure that they have a strong foundation to provide quality health care to their community. Grant award is made available to California State Office of Rural Health (CalSORH) through the Health Resources and Services Administration (HRSA), Office of Rural Health Policy.
Federal authorization for the SHIP program is found in Section 1820 (8) (3) of the Social Security Act and the Labor HHS Appropriations Act of 2002 (PUBL 107-116).
Grant funds are awarded to small rural hospitals to assist with: 1) improving data collection to facilitate quality reporting and improvement; 2) developing or supporting the basic tenants of Accountable Care Organizations or shared savings; and/or 3) improving hospital financial processes.
To qualify for SHIP Grants, applicant hospitals are required to be small non-Federal, short-term, general acute care facilities with 49 or fewer beds, and must be located in a rural area. Successful applicants will receive funding for one year and renewal is contingent upon satisfactory applicant performance. Amounts awarded are dependent upon the availability of federal appropriated funds.
Interested applicants must submit an application to the CalSORH and the hospital’s Medicare Cost Report Worksheet S-3 (PPS Hospitals only). CalSORH will then submit a single grant application to HRSA.
2026-27 Small Rural Hospital Improvement Program (SHIP) Grant Guide 2026-27 Small Rural Hospital Improvement Program (SHIP) Technical Assistance Guide SHIP Investment Resources – National Rural Health Resource Center SHIP Webinar Recording- December 16, 2024 Join the Workforce Programs Update mailing list to receive program announcements.
According to the current listing, eligibility includes: Eligible applicants include states that are current SHIP recipients, as well as states and territories with hospitals that meet eligibility requirements that have not been previously funded. The State Office of Rural Health (SORH) is the official award recipient, acting as fiscal intermediary for eligible hospitals within its state. Eligible small rural hospitals are non-federal, short-term general acute care facilities located in a rural area of the U.S. and the territories, with 49 available beds or fewer. Confirm the full requirements in the official notice before applying.
Small Rural Hospital Improvement Program (SHIP) is funded by U.S. Department of Health and Human Services, Health Resources and Services Administration (HRSA), Federal Office of Rural Health Policy. Verify program details on the funder's official page before applying.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
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