Post on 22-Nov-2014
description
Rural Health Care Program
March 19, 2013
Universal Service Administrative Company
www.usac.org/rhc 2
USAC, the Universal Service Fund (USF), and the FCC
The Universal Service Administrative Company (USAC) administers the Universal Service Fund (USF) on behalf of and under the auspices of the FCC
Rural Health Care
($400 million)
High Cost($4 billion)
Low Income($1.3 billion)
Schools and Libraries
($2.25 billion)
www.usac.org/rhc 3
Rural Health Care Program
Pilot ProgramTelecom/Internet Program
Healthcare Connect Fund
www.usac.org/rhc 4
• For telecommunications services, RHC funds the difference between the urban and rural rates
• For Internet access, RHC funds a straight 25% discount off the rural rate
• There are approximately 4,700 health care providers receiving support under the telecommunications and internet access program
Telecommunications and Internet Program Basics
The RHC Program
www.usac.org/rhc 5
• Established by the FCC to help public and non-profit health care providers deploy a state or regional dedicated broadband health care network and, at the applicant’s discretion, to connect that network to Internet2, National LambdaRail (NLR), or the public Internet.
• Cost reimbursement program will support the connection of non-profit health care providers nationwide to broadband telehealth networks.
• There are 50 Pilot Projects with over 3,800 affiliated health care providers.
Pilot Program Basics
The RHC Program
www.usac.org/rhc 6
• Encourages growth or formation of statewide or regional broadband health care networks
• Replaces current RHC Internet Access Program – RHC Telecommunications Program remains in place
• Supports HCP-owned infrastructure, subject to certain constraints
• Provides uniform 35 percent HCP contribution requirement for all supported services and infrastructure
• Allows eligibility for individual HCPs and consortia
Healthcare Connect Fund Basics
The RHC Program
www.usac.org/rhc 7
Feature HCF Pilot Program Telecom or Internet Access Programs
Discount on telecom services 65 percent 85 percent Urban-rural difference
or mileage basedDiscount on Internet services 65 percent 85 percent 25 percent (not eligible
after 6/30/2014)Administrative offices, off-site data centers
EligibleEligible: Off-site data centers; Not Eligible: admin offices
Not eligible
Customized networks Eligible Eligible Not eligible
Equipment Eligible Eligible Not eligible
Program Comparison
www.usac.org/rhc 9
Healthcare Connect Fund
Goals
1. Increase access to broadband for Health Care Providers (HCPs), particularly those serving in rural areas
2. Foster development and deployment of broadband health care networks
3. Maximize cost-effectiveness of the program
www.usac.org/rhc 10
Healthcare Connect Fund
Highlights
• Encourages growth or formation of statewide or regional broadband health care networks
• Replaces current RHC Internet Access Program – RHC Telecommunications Program remains in place
• Supports HCP-owned infrastructure, subject to certain constraints
• Provides uniform 35 percent HCP contribution requirement for all supported services and infrastructure
• Allows eligibility for individual HCPs and consortia
www.usac.org/rhc 11
Healthcare Connect Fund
Consortium Approach
• HCF encourages HCPs to work together in consortia to meet their broadband connectivity needs
• Consortia may receive upfront support for:— Build-out costs and indefeasible rights of use (IRU)— Equipment necessary for the formation of
networks— Self-construction charges
www.usac.org/rhc 12
Healthcare Connect Fund
Consortium Eligibility
Both rural and non-rural HCPs are eligible to participate• Non-rural HCPs may apply only as part of a consortia
that includes at least 50 percent rural HCPs• Large hospitals (400 beds or more) are capped on
funding– No more than $30,000 annually for recurring charges– No more than $70,000 over five years for non-
recurring charges
www.usac.org/rhc 14
HCF Features
Administrative Efficiencies
• All services, equipment, and expenses related to infrastructure and construction discounted 65 percent
• Simplified application process• Eligibility determination separated from competitive
bidding process (FCC Form 460)• Request for Services (FCC Form 461), Funding
Requests (FCC Form 462), and Requests for Disbursements (FCC Form 463) simplified
www.usac.org/rhc 15
HCF Features
Greater Contract Options
Including:• Multi-year contracts• Pre-paid arrangements• Use of existing Government Master Service
Agreements (MSAs)
www.usac.org/rhc 16
HCF Features
Custom Networks
• Last mile, middle mile, backbone services, and leased equipment are eligible for support
• Customized network configurations are eligible for support
www.usac.org/rhc 17
HCF Features
Build-out, Infrastructure, Administrative Offices
• Service provider build-out to the customer demarcation point and the network equipment necessary to make a broadband connection functional are eligible for support
• Connections and network equipment associated with off-site data centers and off-site administrative offices are eligible for support
www.usac.org/rhc 18
HCF Features
Exemptions
The following are exempt from competitive bidding:
• HCPs requesting no more than $10,000 in annual support
• HCPs purchasing services from an MSA awarded through competitive bidding
• Previously endorsed “Evergreen” contracts
• Contracts bid under the E-rate program
www.usac.org/rhc 19
HCF Features
Eligible Services and Costs
• Public and private networks• Last mile, middle mile, or backbone services• Point-to-multipoint, IP-based, and cloud-based services• Dark fiber, fiber maintenance costs, leases, and IRUs• Build-out and up-front costs• Equipment to make broadband service functional• Internet2 and National Lambda Rail
www.usac.org/rhc 21
Fund Specifics
• Shares $400 million annual cap provided to the Rural Health Care support mechanism
• $150 million annual cap on support for upfront payments, multi-year commitments, and HCP self-construction
• Non-recurring costs that exceed an average of $50,000 per HCP in a consortium must be prorated over a minimum three-year period
• No more than $50 million allocated for Skilled Nursing Facilities (SNF) Pilot Program
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Timeline
• Pilot Projects
– Funding available beginning July 1, 2013, for existing Pilot projects
– Projects may obtain funding for HCP sites as they exhaust Pilot funds
– May add new sites to existing Pilot networks• New individual and consortium applicants
– Funding available beginning January 1, 2014– Competitive bidding process may begin late summer 2013
www.usac.org/rhc 23
Skilled Nursing Facility Pilot
Program Details
• $50 million available over three years, beginning in Funding Year
• Available only to SNFs that do not currently have broadband services sufficient to support their intended telehealth activities
www.usac.org/rhc 24
WWW.USAC.ORG/RHC
Healthcare Connect Fund• Rhc-assist@usac.org
Telecom/Internet Program• RHC-admin@usac.org
Thank You