FCC Announces Program For Health Care Providers To Receive Up To $1 Million To Cover Telehealth Costs

What happened? In response to the COVID-19 outbreak, on March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act into law, providing, among other things, $200 million to the Federal Communications Commission ("FCC") to support health care providers in the fight against the ongoing COVID-19 pandemic. In turn, on April 2, 2020, the FCC established the "$200 Million Emergency COVID-19 Telehealth Program" (the "COVID-19 Telehealth Program") and issued a corresponding "Report and Order" that instructs eligible providers on how to apply for up to $1 million dollars each to cover their telehealth costs.

What's the COVID-19 Telehealth Program?

The COVID-19 Telehealth Program will provide eligible health care providers with financial support to purchase telecommunications services, information services, and devices necessary to provide telehealth services for the treatment of coronavirus or other health conditions during the pandemic. The COVID-19 Telehealth Program will provide selected applicants full funding for eligible services and devices1. The COVID-19 Telehealth Program has a congressionally appropriated $200 million budget, and these funds will be available until they are expended or until the current pandemic has ended. In order to ensure as many applicants as possible receive available funding, the FCC does not anticipate awarding more than $1 million to any single applicant. The FCC will award support to eligible applicants based on the estimated costs of the supported services and connected devices they intend to purchase, as described in each health care provider's respective application. However, in order to give each health care provider maximum flexibility, the FCC will allow the applicants to purchase the services and connected devices they need beyond those identified in their applications. In addition, applicants that have exhausted initially awarded funding may request additional support at a later date to the extent funds remain. Who's Eligible?

Provider Types? "Non-profit" and "public" health care providers, as defined in 47 U.S.C § 254(h)(7)(B), are eligible. This list includes and is limited to: not-for-profit hospitals; teaching hospitals, medical schools, and post-secondary educational institutions offering health care instruction; community health centers or health centers providing health care to migrants; skilled nursing facilities; local health departments or agencies; community mental health centers; rural health clinics; and/or a consortia of health care providers consisting of one or more entities falling into the aforementioned seven categories. Provider Locations? The COVID-19 Telehealth Program will be open to eligible health care providers, whether located in rural or non-rural areas (i.e. anywhere in the U.S.). How does the FCC determine if a health care provider is eligible? Interested health care providers that do not already have an eligibility determination from the FCC can obtain one by filling an FCC Form 460 with the Universal Service Administrative Company (USAC), which is available on the FCC's website (see link below).2 The FCC has directed the USAC to review and process eligibility forms for health care providers interested in participating in the COVID-19 Telehealth Program as expeditiously as possible. Most importantly, health care providers that are interested in the COVID-19 Telehealth Program, but do not yet have an eligibility determination...