8. paloma gpt presentation (2)

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Rural Health Care Program March 19, 2013 Universal Service Administrative Company

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Transcript of 8. paloma gpt presentation (2)

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Rural Health Care Program

March 19, 2013

Universal Service Administrative Company

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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)

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Rural Health Care Program

Pilot ProgramTelecom/Internet Program

Healthcare Connect Fund

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• 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

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• 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

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• 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

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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

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Healthcare Connect Fund

Overview

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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

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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

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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

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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

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Healthcare Connect Fund

Features

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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

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HCF Features

Greater Contract Options

Including:• Multi-year contracts• Pre-paid arrangements• Use of existing Government Master Service

Agreements (MSAs)

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HCF Features

Custom Networks

• Last mile, middle mile, backbone services, and leased equipment are eligible for support

• Customized network configurations are eligible for support

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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

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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

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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

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Healthcare Connect Fund

Fund Specifics

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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

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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

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WWW.USAC.ORG/RHC

Healthcare Connect Fund• [email protected]

Telecom/Internet Program• [email protected]

Thank You