Rural Health Care Outreach
Conference Call Minutes
January 13, 2005

On the call this week, RHCD staff discussed the December 15 FCC’s Second Report and Order on the Rural Health Care support mechanism. The change of the definition of Rural for the program was part of this Order and will take effect for Funding Year 2005. Whether an applicant is considered rural for FY 2005 can be determined by accessing our website by clicking this link. This definition relies on 2000 census tract data and will be much more inclusive. There will also be a 3 year grandfathering under the new definition that will apply to any applicant who received a Funding Commitment in any prior year.

Another part of the Order was a provision for mobile health care providers. In the past, there was no urban/rural difference in the cost of satellite so no discount could be provided. Under the new Order, Mobile Clinics may compare satellite to land lines, if they show that satellite is more cost-effective than multiple landline connections. Only satellite connections and not other wireless options (microwave etc.) can be considered. (However, the Order also contains a request for comment on whether other wireless options should be considered.) Applicants who are considering applying under this provision may call RHCD for more information.

Another component of the Order established a 50% discount for telecommunications or Internet access charges for “states” that are considered all rural, which specifically means American Soma, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands. This provision becomes effective as soon as the order is published in the Federal Register.

Most importantly the new Order fixed a June 30th deadline for RHCD applicants to turn in Form 466 and 466-A. This deadline begins with FY2004. RHCD will not consider Funding Year Form 466 and Form 466-A(s) received after June 30, 2005.

It was further noted on the call that USAC was exempted from the Anti-Deficiency Act until December 31, 2005. This means RHCD is issuing Funding Commitments the same before the August 2004 moratorium. RHCD staff also reminded applicants that they will need an FCC Registration Number for the 2005 applications, and encouraged applicants and consultants to visit the FCC website and get a number as soon as possible. RHCD staff is currently changing the application forms to collect this number and new forms should be ready for the FY2005 window opening in April.

Lastly, along with the Second Report and Order, the FCC issued a request for comment on the current level of support for Internet services, which is 25%. They also sought comment on the use of RHC support for infrastructure development or construction of telecom facilities in rural areas. Comments will be due 60 days from publication in the Federal Register.