Small Rural Hospital Improvement Grant Program
CSFA Number: 482-00-0282
Agency Name
Department Of Public Health (482)
Agency Contact
Julie Casper
217-782-1624
julie.casper@illinois.gov
Short Description
The overall vision of the SHIP grant is to provide assistance to small and rural hospitals to remain financially viable for their primary and secondary market providing exceptional quality of care outcomes while sharing best practice models through collaboration. The proposed project activities of each category and their respective expected outcomes support the overall hospital need to improve quality of care, efficiency management in operations and financial resources for ongoing growth and sustainability.

The purpose of the Small Rural Hospital Improvement Grant Program (SHIP) is to provide financial assistance to small rural hospitals of 49 beds or less to initiate activities in one or more of the following federally designated categories: Value-Based Purchasing (VBP), Accountable Care Organization (ACO) or Shared Savings, and Payment Bundling (PB) or Prospective Payment Systems (PPS). The expected outcomes for each category are as follows: 1) VBP: Improved data collection, quality improvement, and quality reporting; 2) ACO: Initial development of accountable care organizations or shared savings programs; and 3) PB/PPS: Improved hospital financial processes.

The SHIP grantee will be required to provide quarterly progress reports and a final grant report accounting for fiscal and programmatic requirements for the hospitals’ projects. These projects will be monitored for completion and best practice and reproducibility within other small and rural hospitals. All best practices will be shared with the Illinois SHIP hospitals to identify future implementation. Technical assistance will be provided by the grantee to assist all grant recipients in their project development, completion and improvement efforts as needed.

Subject Area
Healthcare
Program Function
Health
Enabling Legislation
This program was first authorized by the Balanced Budget Act of 1997, an amendment to the Social Secutity Act, to help small rural hospitals implement data systems required by the Medicare Prospecitve Payment System (PPS)
Objectives and Goals
Responsibilities include but are not limited to the grantee providing technical assistance to each of the 58 small rural hospitals of 49 beds or less to initiate, implement and complete federally approved activities in one or more of the following categories: Value-Based Purchasing (VBP), Accountable Care Organization (ACO) or Shared Savings, and Payment Bundling (PB) or Prospective Payment Systems (PPS). The expected outcomes for each category are as follows: 1) VBP: Improved data collection, quality improvement, and quality reporting; 2) ACO: Initial development of accountable care organizations or shared savings programs; and 3) PB/PPS: Improved hospital financial processes.

The proposed project activities of each category and their respective expected outcomes support the overall hospital need to improve quality of care, efficiency management in operations and financial resources for ongoing growth and sustainability and must be developed, monitored and shared with IDPH.

The SHIP grantee will be required to provide quarterly progress reports and a final grant report to IDPH based on the SHIP application submitted to and approved by HRSA depicting funds allocated for designated approved projects for the 58 SHIP hospitals. These projects will be monitored for completion and best practice and reproducibility within other small and rural hospitals by the grantee. All best practices will be shared via various methods of communication to the Illinois small and rural hospitals to identify future implementation. Technical assistance will be provided to the SHIP hospitals by the grantee to assist all grant recipients in their project development, implementation, completion and improvement efforts, as needed.
Types of Assistance
Direct Payments for Specific Use
Uses and Restrictions
Eligible applicants must be based in Illinois and will be organizations with a minimum of three years of experience working with SHIP eligible hospitals and knowledge of rural hospital issues approved for this funding by HRSA as well as the capacity to provide sufficient staff resources including the project manager with a minimum of three years of experience working with SHIP eligible hospitals and to provide technical assistance and support for 58 rural hospitals participating in the program.

Staff resources must include a project manager with a minimum of three years of experience working with and providing support to SHIP eligible hospitals. Grantee staff will also provide support to hospital staff on quality improvement, ACO’s value-based purchasing, payment bundling or prospective payment systems and a fiscal manager for reporting requirements and accurate accounting and timely disbursement of funds to the hospitals.

Other staff may be needed for grant site visits to hospitals and to assure proper reporting from the hospitals for the grant. Grantee responsibilities include drafting grant agreements for each hospital on forms approved by the department, getting sub-grantee forms from each hospital, issuing grants to each hospital, requesting and receiving reports from each hospital about their HRSA approved grant project, conducting grant site visits and receiving and approving final reports from each hospital.

Details about approved project categories for which the grantee must be able to document experience are in section D2 of this document. It is expected that $638,000 or $11,000 per hospital will be granted to the 58 eligible hospitals. The remaining funds are available for administrative and or indirect costs for the grantee.

Eligibility Requirements
IDPH is seeking a Grantee that must be able to fulfill required objectives of the hospitals in the SHIP application submitted to HRSA and approved for this program. The grantee must have a project manager with at least three years of experience working with SHIP eligible hospitals in the approved project areas including: Value-Based Purchasing (VBP), Accountable Care Organization (ACO) or Shared Savings, and Payment Bundling (PB) or Prospective Payment Systems (PPS).

Required experience is a minimum of 3 years working with SHIP eligible hospitals. This includes working with hospitals in these project areas, site visit experience, serving as grant coordinator on federal projects, experience minimizing administrative costs of hospitals including, technical assistance, drafting grant applications and budgets, and executing grant agreements for each hospital based on the HRSA approved SHIP projects. Please see ‘eligible applicants’ information above.
Eligible Applicants
Government Organizations;
Application and Award Processing
An application addressing the grant manager’s minimum of three years of experience working with SHIP eligible hospitals in Illinois and a staff with the ability to carry out the responsibilities and requirements of the approved SHIP projects in the HRSA grant on behalf of the hospitals and a budget for the SHIP grant including $638,000 in direct grant funding to the 58 rural hospitals is required. Responsibilities include but are not limited to the grantee providing technical assistance to each of the 58 small rural hospitals of 49 beds or less to initiate, implement and complete federally approved activities in one or more of the following categories: Value-Based Purchasing (VBP), Accountable Care Organization (ACO) or Shared Savings, and Payment Bundling (PB) or Prospective Payment Systems (PPS). The expected outcomes for each category are as follows: 1) VBP: Improved data collection, quality improvement, and quality reporting; 2) ACO: Initial development of accountable care organizations or shared savings programs; and 3) PB/PPS: Improved hospital financial processes.

The proposed project activities of each category and their respective expected outcomes support the overall hospital need to improve quality of care, efficiency management in operations and financial resources for ongoing growth and sustainability and must be developed, monitored and shared with IDPH.

The SHIP grantee will be required to provide quarterly progress reports and a final grant report to IDPH based on the SHIP application submitted to and approved by HRSA depicting funds allocated for designated approved projects for the 58 SHIP hospitals. These projects will be monitored for completion and best practice and reproducibility within other small and rural hospitals by the grantee. All best practices will be shared via various methods of communication to the Illinois small and rural hospitals to identify future implementation. Technical assistance will be provided to the SHIP hospitals by the grantee to assist all grant recipients in their project development, implementation, completion and improvement efforts as needed.

Assistance Consideration
N/A
Post Assistance Requirements
Quarterly progress and financial reports to IDPH are required from the grantee for this program.
Regulations, Guidelines, Literature
N/A
Funding By Fiscal Year
FY 2017 : $500,981
FY 2018 : $495,000
FY 2019 : $696,000
FY 2020 : $696,000
FY 2021 : $696,000
Federal Funding
Notice of Funding Opportunities
None