HCAI webinar details SHIP grant eligibility, application steps and Jan. 24, 2025 deadline

On Dec. 16, 2024, the Department of Health Care Access and Information (HCAI) hosted a webinar to explain the Small Rural Hospital Improvement Program (SHIP) application process, eligibility criteria and deadlines. The application cycle opened Dec. 9 and closes Jan. 24, 2025, at 3 p.m.; HCAI staff warned that failure to meet federal deadlines could put grant funds at risk.

The webinar provides operational guidance for small rural hospitals seeking SHIP grants, which are funded by the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA), Federal Office of Rural Health Policy. Myles Bass, SHIP program officer at HCAI, said the program’s goal is “to assist small rural hospitals in meeting value based payment and care goals through investments in hardware, software, and training.” He emphasized the upcoming application-close timeline, saying, “that deadline is very important” because of a tighter federal turnaround this year.

SHIP awards are paid on a program-year cycle that runs June 1 through May 31. HCAI said final award amounts are set by HRSA after all applications are reviewed; HCAI estimated the annual award at about $13,000 per eligible, approved hospital, subject to availability of federal funds. HCAI will pass completed eligible applications to the federal agency in April 2025; awardees receive payments at the end of the program year after submitting a year-end report confirming project completion.

Eligibility and program priorities: Hospitals must be located in California, either outside a metropolitan statistical area or inside a rural census tract within an MSA, be nonfederal short‑term general acute‑care facilities with 49 or fewer staffed beds. Critical access hospitals are automatically eligible. Current SHIP priorities for the 2025–26 program year include Medicare Beneficiary Quality Improvement Program (MBQIP) reporting and ICD‑11 coding readiness or implementation; hospitals must submit projects that address one or both priorities or otherwise demonstrate they meet those goals before selecting other project types.

Allowable projects and application mechanics: HCAI outlined a wide range of allowable investments tied to value‑based purchasing, payment bundling or prospective payment system (PPS) readiness, and accountable care organization/shared‑savings activities. Examples included MBQIP data collection and related training, ICD‑11 software and training, telehealth hardware and software (not telecommunications service), computerized provider order entry implementation, pharmacy services training (software/hardware but not medications), social‑determinants screening software, and cybersecurity risk assessments connected to value‑based initiatives.

Applicants must create a user profile in the HCAI funding portal and select "Organization for Small Rural Hospital Improvement" as the user type before beginning the SHIP application. The application requires certification of eligibility, selection of allowable projects, and a detailed work plan for each project. After submission, HCAI reviews applications for hospital and project eligibility; if edits are required, HCAI will return the application to "in progress" and edits are due March 15, 2025. HCAI warned that failure to submit required edits by March 15 could jeopardize grant funds.

Questions and resources: Webinar hosts said the session was recorded and would be posted within seven to ten business days. Presenters directed applicants to an "allowable investment search tool" and other resources posted in the chat, and they provided a contact email (shiphci@ca.gov) and phone number (916‑326‑3700) for follow‑up. Staff also noted some temporary portal text describing the site as "open for testing" was a bug and that the application is open for submissions.

Votes at a glance: No formal votes or board actions were taken during the webinar; the session provided program and application guidance only.

Ending: HCAI encouraged interested hospitals to review the grant guide, consult the allowable investment tool, and contact the SHIP program office with questions. Important upcoming dates cited during the webinar include the application close on Jan. 24, 2025 (3 p.m.), the edits due date of March 15, 2025, and the program year start on June 1, 2025.