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Background
The Federal Communications Commission (FCC)
established the Rural Health Care Pilot Program in 2006 to
encourage the development and use of broadband networking services
by health care providers serving rural communities throughout the
nation. Broadband networks can significantly increase access by
rural Americans to telehealth and telemedicine services capable of
delivering health care information, consultation, and other
services. In November 2007, the FCC selected 69 entities to
participate in the Pilot Program. Here are some frequently asked
questions about the Pilot Program.
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What Benefits Are Available Under
the Rural Health Care Pilot Program?
Participants are eligible to receive
up to 85 percent of the costs associated with:
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construction of state or regional
broadband health care networks and the advanced
telecommunications and information services provided
over those networks;
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connecting to Internet2 or National
LambdaRail, which are both dedicated nationwide backbone
networks; and
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connecting to the public Internet.
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Who Pays for the Pilot Program?
The Pilot Program uses the same funds as the
Rural Health Care support mechanism, a part of the Universal
Service Fund (USF). All telecommunications service providers and
certain other providers of telecommunications must contribute to
the federal USF based on a percentage of their interstate and
international end-user telecommunications revenues. These
companies include wireline phone companies, wireless phone
companies, paging service companies, and certain Voice over
Internet Protocol (VoIP) providers.
Some consumers may notice a “Universal
Service” line item on their telephone bills. This appears when a
company chooses to recover its USF contributions directly from its
customers by billing them this charge. The FCC does not require
this charge to be passed on to customers. Each company makes a
business decision about whether and how to assess charges to
recover its Universal Service costs. These charges usually appear
as a percentage of the consumer’s phone bill. Companies that
choose to collect Universal Service fees from their customers
cannot collect an amount that exceeds their contribution to the
USF. They also cannot collect any fees from a Lifeline program
participant (an income-eligible subscriber that receives discounts
on telephone service).
How Was the Pilot Program Established?
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In September 2006, the FCC released the
Rural Health Care Pilot Program Order with the goal of using
Rural Health Care funds to support a nationwide broadband health
care network.
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In May 2007, the FCC received 81
applications seeking funding, representing 43 states and 3 U.S.
territories.
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In November 2007, the FCC selected 69
applicants covering 42 states and 3 U.S. territories to
participate in the Pilot Program.
What Health Care Providers Are
Participating in the Pilot Program?
Visit the FCC Web site to find a listing of
all 69 Pilot Program participants, listed both alphabetically and
by state. Follow the link to “Selected Participants” below the
“Notices” heading at
www.fcc.gov/cgb/rural/rhcp.html.
What Types of Entities Are Eligible for
Support?
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post-secondary educational institutions
offering health care instruction, including teaching hospitals
and medical schools;
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community health centers or health centers
providing health care to migrants;
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community mental health centers;
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not-for-profit hospitals;
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dedicated emergency departments in
for-profit hospitals;
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rural health care clinics; and
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groups of health care providers consisting
of one or more entities described above.
What Is Happening Now?
The fund administrator, the Universal Service
Administrative Company (USAC), is working with Pilot Program
participants to help them submit the necessary FCC forms (Forms
465, 466-A and 467) so that they receive reimbursement from Rural
Health Care funding. The FCC has provided guidance on proper
completion of these forms and requires Pilot Program participants
to submit additional information, including network costs
worksheets, certifications, letters of agency, and network design
studies (if applicable).
Total funding for the 69 selected program
participants is approximately $417 million over three years (or
$139 million per year). Participation in the Pilot Program is
limited to the 69 participants selected in November 2007.
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Federal Communications Commission
