State Offices of Rural Health Grant Program (SORH)

The Georgia Department of Community Health's State Office of Rural Health (DCH/SORH) was created in 1999 under Executive Order by Governor Roy Barnes. Originally, the State Office of Rural Health and the State Primary Care Office (PCO), formerly located within the Department of Human Resources, were consolidated into the newly formed State Office of Rural Health (SORH) and placed within the Georgia Department of Community Health. The SORH is located in Cordele, Georgia, a rural community.

The mission of the SORH is to "optimize health status and eliminate health disparities of persons in rural and underserved areas of Georgia through the development of regional systems of quality healthcare."

The objectives are to empower communities through regional planning and leadership development; strengthen and maintain the best possible healthcare within the limits imposed by available resources; coordinate state resources and technical assistance; provide up-to-date health systems information and technical assistance; build strong partnerships to meet locally/regionally defined needs; provide incentives to the region to implement integrated service delivery; and be the single point of contact for all regional issues related to healthcare.

The program is a Federal-State partnership that requires a State funding match of $3 for each $1 of Federal funding.

SORH Award Amount (FY06): $150,000

Major Accomplishments in FY 2006 (October 1, 2005 – September 30, 2006):

• Developed Dental Loan Repayment Program in partnership with the State Medical Education Board and the Medical College of Georgia
• Expanded marketing activities to increase the utilization of the 3R Network for Georgia’s rural and underserved communities
• Provided $200,000 to support the development of Volunteer Clinics that participate in Georgia’s Volunteer Clinic Program which provides sovereign immunity to the health care providers
• Convened with rural health leaders and community stakeholders in a statewide effort for the updating of the Rural Health Plan.
• Joined with the Georgia Hospital Association to provide 35 Critical Access Hospitals with a coordinated quality improvement program.
• Worked with HomeTown Health to provide technical assistance to 20 SHIP Hospitals

SORH Contact Information:
Office: Office of Rural Health
Address: 502 South Seventh Street
Phone: (229) 401-3090
Fax: (229) 401-3077

Charles F. Owens, Executive Director

1) Medicare Rural Hospital Flexibility Grant Program (Flex)

The Flex Program helps sustain access to high quality health care services in rural America. It facilitates the development and support of community-based collaborative rural delivery systems in all grantee States through conversion of hospitals to critical access status, development of rural healthcare networks and integration of EMS.
Flex Award (FY06): $460,000

Program Highlights:

• Number of Critical Access Hospitals (CAHs) supported: 35
• Number of Critical Access-eligible Hospitals supported: 0
• Number of Rural Health Networks developed: 1
• Number of Emergency Medical Services (EMS) assisted: 2
• Number of Rural Communities assisted: 36

Major Accomplishments:

The Medicare Rural Hospital Flexibility (FLEX) Program Grant

The Balanced Budget Act of 1997 included funding for the Medicare Rural Hospital Flexibility (FLEX) Program Grant which focused on the development of Critical Access designation for hospitals identified as “at risk” for closure or based on pre-established eligibility criteria for conversion to Critical Access Hospital (CAH) status. FLEX also provides for the establishment and implementation of the State Rural Health Plan, development of community health networks, support and sustainability of CAHs, and the integration of rural Emergency Medical Services (EMS) with other components of the health care delivery system. Since 1997 Georgia has received nearly $5,000,000 in FLEX funding.

FLEX – MAJOR ACCOMPLISHMENTS – 2005-2006

In December 2005 an external evaluation of the Medicare Rural Hospital Flexibility Program in Georgia was published and widely distributed throughout the State. The analysis focused on the financial strengths and weaknesses of Critical Access Hospitals since conversion. The objective was to assess the effectiveness of the technical assistance programs provided through funding of the FLEX program to the communities and citizens of rural Georgia. Such technical assistance included financial feasibility of hospital conversion to Critical Access Hospital designation; technical assistance to hospitals that chose to convert; outpatient reimbursement enhancements through Georgia Medicaid and the Georgia Health Benefit Program provided to eligible rural hospitals; Quality Improvement Services; and Business Office and Operational Assessments. The analysis revealed that FLEX program assistance had significantly improved the performance of CAHs through enhanced reimbursement and technical assistance. The effects of enhanced reimbursement had an important impact on the financial performance of the CAHs; however, these hospitals continue to face a number of challenges that will provide the SORH opportunities through the FLEX program to furnish continued assistance in meeting the unique challenges of these hospitals.

2) Small Rural Hospital Performance Improvement Grant Program (SHIP)

The goal of SHIP is to assist small (less than 50 beds) rural hospitals pay for any or all of the following: 1) costs related to implementation of prospective payment systems, (2) compliance with provisions of HIPAA and 3) reduction of medical errors and quality improvement. State Offices of Rural Health (SORH) help eligible rural hospitals to participate in SHIP. Eligible hospitals submit an application to their SORH; the SORH prepares and submits a single grant application to HRSA on behalf of all hospital applicants in the State. There are approximately 1600 eligible hospitals nationwide and each usually receives approximately $9,000.
SHIP Award (FY06): $495,020

Program Highlights:

• Hospitals receiving funding: 53
• Hospitals in consortiums, networks or systems: 35
• Hospitals using funds for QI and /or reduction of medical errors: 21
• Hospitals using grant funds for Health Information Technology: 11

Major Accomplishments:

Small Rural Hospital Improvement Program Grant (SHIP)

The Small Rural Hospital Improvement Program Grant (SHIP) was authorized by the Social Security Act and the HHS Appropriations Act of 2002. Grant funds are awarded to small rural hospitals with fewer than fifty (50) beds to assist with costs associated with the Prospective Payment System (PPS), compliance with the Health Insurance Portability and Accountability Act (HIPAA), and the reduction of medical errors and Quality Improvement (QI). These funds are used to help the most vulnerable of hospitals to improve their internal infrastructure and to provide quality health care to the
community. The 2005-2006 SHIP Grant provided funding to fifty-three (53) small rural hospitals to address a range of hospital specific needs.

SHIP – MAJOR ACCOMPLISHMENTS – 2005-2006

The Georgia State Office of Rural Health (SORH) recognizes the considerable advantages of consortium membership and consistently promotes those advantages to SHIP grantees. Because of this promotion by the SORH and the dedication of two (2) skilled consortiums to provide their respective memberships with products and services to meet the needs of those in today’s rapidly evolving hospital environment, consortium membership rose to 66 percent in the 2005-2006 grant year. With continued encouragement by the SORH and the availability of innovative and timely Quality Improvement (QI) and HIPAA related programs consortium membership is expected to increase over the next several years.

Total HRSA Funding (FY06): $1,105,020