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FCC Rural Health Care Pilot Program
In 2006, the FCC wanted to look into ways to both improve the use and outcomes of its standard Rural Health Care program geared toward rural health care providers. The idea was to subsidize “rural” health care providers for monthly recurring telecommunications cost–as well as to help them identify how they could build a nationwide health care delivery system network infrastructure. With those two goals, the Rural Health Care Pilot Program (RHCPP) was formed. The RHCPP in essence was a research and development project of sorts: to learn at both the state and regional level what worked and from those lessons learned, help rural providers understand how to replicate what has worked nationwide.
There were 62 projects nationwide that were awarded RHCPP funding. OHN received the 5th largest award of $20.182 million to help build a core broadband and participant base footprint in Oregon. The provider sites connecting to the core network do not receive any direct funds from the RHCPP subsidy as it goes to awarded telecommunications vendors that provide the connectivity. OHN also receives none of the RHCPP subsidy dollars for operations, management or deployment efforts of the RHCPP, including recruiting and training provider sites on the eligibility vetting process, forms management/submission, posting and review of Request for Proposals (RFPs) and oversight/approval of the telecom invoices.
Specifically, the funds are distributed as follows:
- 85% of the one-time broadband installation costs are covered by the RHCPP
- 85% of the monthly recurring broadband (Ethernet & internet) costs are covered through May 2015 by the RHCPP
Each RHCPP program nationwide was responsible for matching funds for installation costs, of which OHN was awarded grants to supplement the 15% remaining funds so provider sites benefitted from having 100% of their installation costs covered. Connected provider sites are then responsible for paying the 15% remaining of the monthly recurring costs. Participating in the RHCPP is a huge benefit for Oregon providers by giving them the ability to significantly lower the barriers required to have reliable high-speed, high-quality connectivity required of life saving health care applications and services.
The RHCPP is therefore in essence a cost reimbursement program that is unique in the following ways:
- Both urban and rural non-profit health care/education providers are eligible for funding if they provide the approved services (click here for a list of approved services)
- Funding covers both the broadband (Ethernet & internet) installation and monthly recurring costs
OPPORTUNITY TIMELINE
Time is of the essence as this opportunity could cover 100% of your broadband installation charges and 85% of your monthly recurring costs. Prior to our recent notification of an RHCPP extension by the FCC (extended from June 30, 2011to June 30, 2012), our $20.182 million subsidy was managed by both a first come, first served basis and geography. However, the extension will allow us to manage our remaining subsidy dollars to strategically ensure that we’re providing the greatest value to the network and communities served across the state.
The process to join the network has no cost or obligation, but the key to OHN’s prioritization of participants is to learn how each provider site would use the connection to better serve their community. From this we will learn which provider sites and communities would be best suited for our remaining subsidy dollars. Using the OHN connection has a wide variety of anticipated direct and indirect benefits and outcomes including health care, workforce and economic development. Most importantly, provider sites should have some level of plan or intent to fully utilize the connection to better serve the needs of Oregon. We won’t get there in a day, but we can achieve our goals if we get there together. That’s what OHN is all about.
If you're interested in applying for the RHCPP funding, you will need to follow these steps (as outlined in our Welcome User Guide):
- Step 1: With the help of an OHN representative, you'll fill out and submit a Letter of Agency (LOA) which authorizes OHN to include your site/organization in the next Request for Proposal. This begins the process of obtaining FCC/USAC approval and opens your site up to the competitive bidding process for vendors to openly compete on servicing your broadband needs.
- Step 2: OHN staff will work with your personnel throughout the entire RHCPP process, from the LOA through the vendor contract negotiations.
- Step 3: During contract negotiations, an OHN representative will provide you with your estimated total annual OHN Participation Fees and officially welcome you as a member of OHN. The fee breakdown outlines a pricing structure range (ceiling and floor) along with one component of basing your fees on how much of the RHCPP subsidy dollars you draw down. Once the fees are clarified and agreed upon, you will be asked to sign OHN's Participation Agreement.
Once the vendor contract is approved by USAC, they will issue a formal Funding Commitment Level (FCL) and the vendor can start the installation process. Vendors will work with the OHN staff and Network Operations Center (NOC) to get the leaf nodes installed on your site for 24/7 monitoring and trouble-shooting support.
From there, OHN staff will work with your team to conduct a “before and after” test of your connection on OHN by running an existing application on both lines. This process helps your team experience the value of your new connection, helps you transfer traffic onto the OHN and begin experiencing the value of our network as soon as possible.. The FCC wants to ensure that your site is using the connection for required uses—but moreover, they want to be certain you are actually USING the connection. OHN’s job is to help you and your team understand how to use the network as much as you can. For general audit and use requirements, click here.
If you're not eligible for the RHCPP subsidy but still interested in joining OHN, simply contact an OHN representative to learn how your organization can join the network: info [at] oregonhealthnet [dot] org.
WHAT TO EXPECT OF THE RHCPP PROCESS
While the FCC RHCPP is a highly interdependent and grouped RFP process mandated by the FCC, our goal is to make the process as clear as possible. Therefore, this document outlines the general timing and flow of the process, timelines and how/when we will be communicating with you at the various stages.
GETTING STARTED
Forms and information on initiating participation and receiving funding through the Rural Health Care Pilot Program subsidy are located here. If you have any questions or need more information, don't hesitate to contact us.


