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Rural Prospective Payment System (PPS) Hospitals

Small Hospital Improvement Program

The Michigan Center for Rural Health works with Rural PPS Hospitals in the State of Michigan primarily under the Small Hospital Improvement Program (SHIP).

The SHIP 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 accountable care organizations (ACOs); 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.

Eligible hospitals are located in a rural area and have 49 available beds or less, as reported on the hospital’s most recently filed Medicare Cost Report.

MCRH facilitated funding to 56 hospitals for FY 21-22 (program year June 1, 2022 – May 31st, 2022).

  • Forty-two hospitals invested in Value-Based Purchasing activities.
  • Twenty-one invested in Accountable Care Organization activities.
  • Two invested in Payment Bundling/Prospective Payment System activities

Small Hospital Improvement Program COVID Testing and Mitigation

In response to the COVID-19 Pandemic, MCRH facilitated the distribution of supplemental funding for SHIP-eligible hospitals through The American Rescue Plan Act of 2021 (P.L. 117-2).

$13,177,176 was allocated to 51 eligible MI hospitals as one-time funding under Section 711 of the Social Security Act (42 U.S.C. 711(c)).  The period of performance was July 1, 2021 – December 31, 2022. 

Funded activities include testing, education, the establishment of alternate testing sites, test result processing, arranging for the processing of test results, and engaging in other activities within the CDC Community Mitigation Framework to address COVID-19 in rural communities.