FCC Proposes Efficiency Reforms to the Rural Health Care Program

The Federal Communications Commission proposed reforms to improve the efficiency and effectiveness of its Rural Health Care (RHC) Program. The proposed reforms would cut red tape, reduce administrative burdens on program participants, and ensure that limited program funding reaches the rural hospitals and clinics that need it most, given increased program participation and service costs. With this Third Further Notice of Proposed Rulemaking, the FCC is seeking comment on defining the scope of “similar services” and “comparable rural areas” for purposes of determining rural rates in the Telecommunications Program; measures to lessen the burdens resulting from the cost study option of determining rural rates and the associated evidentiary requirements proposed previously; ways to encourage the use of lower-cost back-up services; and establishing an eligible services list for the RHC Program, modeled in part on the E-Rate program’s eligible services list.