1 (images courtesy shorpy.com) Telecommunications Attorney - PowerPoint PPT Presentation

• Rural Health Care Program • Healthcare Connect Fund 1 (images courtesy shorpy.com)

 Telecommunications Attorney  Specialty in Public/Private Partnerships and Federal Funding for Rural Broadband  Former Director at USAC of the FCC’s Rural Health Care Pilot Program 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 What is • Universal Service • The Rural Health Care Program • The Pilot Program • The Healthcare Connect Fund 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (image courtesy shorpy.com) (703) 584-86XX 3

 $8.1 billion in 2011  Surcharge on interstate telecommunications  Purposes  Equal access to telecommunications for rural and low income Americans  Access to advanced services ( i.e ., broadband) for Schools, Libraries, and Rural Health Care providers 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (image courtesy shorpy.com) (703) 584-86XX

• High Cost (Connect America) = $4.03 billion • Low Income = $1.75 billion • Schools & Libraries = $2.23 billion • Rural Health Care = $81.5 million (image courtesy shorpy.com)

 Primary Program • Up to $400 million annually • Funds “urban-rural” difference • Historically undersubscribed  Key Dates • 2004  Internet Access Program • 2006-2007  Pilot Program launched • 2010  NPRM  GAO Report • 2012  FCC Staff Report  Healthcare Connect Fund 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (image courtesy shorpy.com) (703) 584-86XX

CURRENT NEW  Telecommunications  No change (urban/rural difference)  Healthcare Connect Fund  Internet Access Support (HCF) • Broadband  Pilot Program - Networks • Networks  $400 million annual cap  Program cap unchanged • $81.5 million disbursed in 2011 ($49 million in 2008) 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Post-secondary educational institution offering health care instruction  Community health center or health center providing health care to migrants  Local health department or agency  Community mental health center  Not-for-profit hospital  Rural health clinic; or  Consortium of the above 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com Image courtesy shorpy.com (703) 584-86XX

 Funding Networks • $417 million – 3 years • 69 state/regional networks • 50 complete or in- progress  85% flat subsidy • Urban HCPs in consortia • Recurring services • Network Equipment • Long-term leases & IRUs • Construction 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (Image courtesy shorpy.com) (703) 584-86XX

 Challenges • New open-ended rules • No support for administrative costs • Establishing networks is difficult 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (Image courtesy shorpy.com) (703) 584-86XX

 Many Approaches • Leasing services only  Single-carrier  Multi-carrier • Facilities & Equipment  Owning equipment  Leasing facilities  Constructing facilities • Network Management  Carrier managed  Neutral third-party managed  HCP managed 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (Image courtesy shorpy.com) (703) 584-86XX

 Lessons Learned • Consortia are more efficient  More bidders; more competition  Lower prices; better service  Stimulated broadband investment/deployment  Less burdensome for individual HCPs 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (Image courtesy shorpy.com) (703) 584-86XX

PILOT HCF  65% flat rate  85% flat rate  Urban HCPs eligible if in  Urban HCPs eligible if in network with majority rural network with some rural  Networks and single HCPs  Networks only  $150 million each year  $417 million over 3-6 years  $50 million over 3 years for skilled nursing facilities 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (703) 584-86XX

 Unanswered questions • New eligible entity types? • Equipment? • Network Operations Centers? • Data centers? • Migration/transition • New network application process 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (Image courtesy shorpy.com) (703) 584-86XX

 Consortia: Strength in Numbers  Devil in the details: 170 page order  Performance measures: how to measure success? 8300 Greensboro Drive Suite 1200 McLean, VA 22102 www.fcclaw.com (Image courtesy shorpy.com) (703) 584-86XX