FCC Seeks Reforms to Rural Health Care Program 

Initial Comments Due: 30 days after publication in the Federal Register
Reply Comments Due: 60 days after publication in the Federal Register

Background

The Rural Health Care Program provides funding to eligible health care providers for telecommunications and broadband services necessary for the provision of health care. 

As explained by the FCC, such funding is critical in light of the recent “explosion in demand for telehealth services, a trend accelerated by the COVID-19 pandemic, that has increased the bandwidth needs of rural health care providers. Reliable high speed connectivity is critical for rural health care providers to serve patients in rural areas that often have limited resources, fewer doctors, and higher rates for broadband and telecommunications services than urban areas.”

The Rural Health Care Program consists of two programs: (1) the Telecommunications (Telecom) Program; and (2) the Healthcare Connect Fund (HCF) Program.

Eligible health care providers include: (1) post-secondary educational institutions offering health care instruction, teaching hospitals, and medical schools; (2) community health centers or health centers providing health care to migrants; (3) local health departments or agencies; (4) community mental health centers; (5) not-for-profit hospitals; (6) rural health clinics; (7) skilled nursing facilities and (8) health care consortia.

More detailed information on these programs can be found here and here.

Comment Sought from Interested Parties

In the Further Notice of Proposed Rulemaking, the FCC seeks comment from interested parties on many issues, including: 

• Options for determining support in the Telecom Program and potential revisions to program forms and the USAC online portal to improve the quality and consistency of data 
• Ways to improve the accuracy of support provided in the Telecom Program, including changes to the Rates Database, as well as alternative rate determination mechanisms 
• A proposal to reform the FCC’s funding cap rules to more efficiently and effectively handle the internal cap on multi-year commitments and upfront payments in the HCF Program; and 
• A proposal to simplify invoicing by harmonizing the process between the Telecom Program and the HCF Program as part of the Commission’s efforts to strengthen protections against waste, fraud, and abuse.

Should you have any questions regarding the FCC’s Rural Health Care Program or the FCC’s specific proposals discussed above, please contact Jeff Rummel or Douglas Grimm.