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Background
The Federal Communications Commission (FCC)
established the Rural Health Care (RHC) Pilot Program in 2006 to
encourage the development and use of broadband networking services
by health care providers serving rural communities throughout the
nation. In November 2007, the Commission selected 69 entities to
participate in the Pilot Program. Pilot Program Participants are
required to follow the procedures under the Rural Health Care
Pilot Program Selection Order and the existing RHC mechanism,
except that Participants need not re-apply annually for funding as
is required under the existing mechanism. 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?
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Participants are eligible to
receive up to 85 percent of the costs associated with
the construction of state or regional broadband health
care networks and with advanced telecommunications and
information services provided over those networks.
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Participants may also receive up
to 85 percent of the costs of connecting to Internet2
or National LambdaRail, dedicated nationwide backbone
networks, as well as the public Internet.
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Who Pays for the Pilot Program?
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The Pilot Program will use the same funds
as the Rural Health Care support mechanism, a component of the
Universal Service Fund (USF). The Pilot Program is part of the
existing USF, and the amount authorized for RHC funding has
not increased as a result of the Pilot Program.
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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.
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Some consumers may notice a
"Universal Service" line item on their telephone
bills. This line item 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.
How Was the Pilot Program Established?
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In September 2006, the FCC released the RHC
Pilot Program Order with the goal of using RHC 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 program.
What Health Care Providers Are
Participating in the Pilot Program?
Visit the FCC Web site to find a listing of
all 69 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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Consortia of providers consisting of one
or more entities described above.
What Is Happening Now?
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The fund administrator (the Universal
Service Administrative Company or USAC) will work with Pilot
Program Participants through a targeted outreach program to
facilitate the submission of FCC forms and the subsequent
disbursement of funds.
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To receive reimbursement, Participants
will be required to complete FCC Forms 465, 466-A, and 467
through the USAC administrative process.
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Due to the unique structure of the Pilot
Program, the FCC's November 2007 Order provides guidance on
proper completion of these forms by the Participants necessary
to receive reimbursement, as well as requires additional
information, including network costs worksheets,
certifications, letters of agency, and network design studies
(if applicable).
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Each selected Participant has a maximum
funding support amount spread over a 3-year commitment period
(Funding Years 2007 to 2009 of the existing Rural Health Care
support mechanism). Total funding amounts for the 3-year
commitment period are $139 million per year.
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The Pilot Program is limited to
Participants that were selected in the Rural Health Care
Pilot Program Selection Order.
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