Small Rural Hospital Improvement Grant Program

To help small rural hospitals: (1) pay for costs related to implementation of PPS; (2) comply with provisions of HIPAA; and (3) reduce medical errors and support quality improvement.

Examples of Funded Projects

Examples of allowable activities include: 1) purchase of billing and coding software and charge-master review for PPS implementation; 2) purchase of security applications and workspace modifications to increase security and privacy for HIPAA compliance, and 3) purchase of electronic health record systems and providing staff training and educational materials in Quality Improvement.

Agency - Department of Health and Human Services

The Department of Health and Human Services is the Federal government's principal agency for protecting the health of all Americans and providing essential human services, especially to those who are least able to help themselves.

Office - Jennifer Chang, Office of Rural Health Policy, Parklawn Building, Room 9A-55, 5600 Fishers Lane, Rockville, MD, 20857.

Telephone: (301) 443-0835, (301) 443-2669 (fax).
Website Address

Program Accomplishments

In FY 07, 46 awards were made; in FY 08 and FY 09, it is estimated that 46 awards will be made.

Uses and Use Restrictions

All funds awarded are to be expended solely for carrying out the approved projects.

Eligibility Requirements

Applicant Eligibility

All small rural hospitals located in the 50 States and Territories.

Beneficiary Eligibility

Not applicable.


Applicants should review the individual HRSA Guidance documents issued under this CFDA program for any required proof or certifications which must be submitted prior to or simultaneous with submission of an application package.

Aplication and Award Process

Preapplication Coordination

This program is excluded for coverage under E.O.


Application Procedures

Grant applications and required forms for this program can be obtained from Please visit the Web site at to both find and apply for all Federal grant opportunities. All qualified applications will be forwarded to an objective review committee which will make funding recommendations to the Associate Administrator for the Office of Rural Health. The Associate Administrator has the authority to make final selections for awards.

Award Procedures

Applications are evaluated by Federal and Nonfederal experts. All approved applications will be funded. Final decisions on level of funding are made by the Director, Office of Rural Health Policy.

Deadlines .


Section 1820(g)(3) of Social Security Act.

Range of Approval/Disapproval Time

Up to six months.




SHIP awards may be made for up to 3-year project periods. Subject to availability of funds, after initial awards, projects may be renewed non-competitively contingent upon submission and approval of an application, availability of appropriated funds, and awardee's satisfactory performance.

Assistance Considerations

Formula and Matching Requirements


Length and Time Phasing of Assistance

Awards are made annually and payment is made through the DHHS Payment Management System.

Post Assistance Requirements


An annual progress report and final financial status report are due within 90 days after end of the project period.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.


All records must be maintained until expiration of 3 years from the date of submission of the final expenditure report. If questions remain following the 3-uear period, such as those raised as a result of an audit or an on-going enforcement action, recipients must retain records until the matter is completely resolved.

Financial Information

Account Identification



(Grants) FY 07 $14,824,097; FY 08 est $14,220,000; and FY 09 est $14,220,000.

Range and Average of Financial Assistance

$26,835 to $992,845; $315,406.

Regulations, Guidelines, and Literature

This program is subject to the provisions of 45 CFR Part 92 for State, local and tribal governments and 45 CFR Part 74 for institutions of higher education, hospitals, other nonprofit organizations and commercial organizations, as applicable.

Information Contacts

Regional or Local Office

Jennifer Chang, Office of Rural Health Policy, Parklawn Building, Room 9A-55, 5600 Fishers Lane, Rockville, MD, 20857. Telephone: (301) 443-0835, (301) 443-2669 (fax).

Headquarters Office

Grants Management Office: Rick Goodman, Director, Division of Grants Management Operations, Health Resources and Services Administration, Department of Health and Human Services, 5600 Fishers Lane, Room 11A-16. Health Services Branch; Telephone: (301) 443-2385; Research and Training Branch; Telephone: (301) 443-3099; Government and Special Focus Branch; Telephone: (301) 443-3288.

Criteria for Selecting Proposals

Applicants will be evaluated based on: (1) extent to which applicant is responsive to the requirements and purposes of this program; and (2) extent to which application describes need, strategies and investment to address those needs.

Social Entrepreneurship

New Age of Philanthropy: #GivingTuesday

A part of a series produced by The Huffington Post in celebration of #GivingTuesday, which will take place this year on December 3, Kathy Calvin and Henry Timms vouch that we are living in a new era of philanthropy.

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