Telehealth Industry Seeks More Than FCC Has Available for COVID-19
The telehealth industry fears the $200 million the FCC has available for emergency COVID-19 funding will quickly run out, before all forthcoming applications are considered. Stakeholders we spoke with this month are seeking additional funding, but called the funds included in the Coronavirus Aid, Relief, and Economic Security Act a good start. Reps. Anna Eshoo, D-Calif., and Don Young, R-Ala., proposed an additional $2 billion in such spending Friday via their Healthcare Broadband Expansion During COVID-19 Act (HR-6474).
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The Cares Act funding is "a down payment," said American Medical Informatics Association Vice President-Public Policy Jeff Smith: "It will be helpful for sure, but time will tell to what degree it's sufficient."
The "$200 million is not enough, but it's definitely meaningful," said Connected Health Institute Policy Counsel Brian Scarpelli. American Telemedicine Association Director-Public Policy Kevin Harper called the COVID-19 telehealth fund "a good first step." Whether it's enough is a question Congress is considering across programs, he said. Requests for additional funding could be part of future negotiations, he said: "They're working as fast as possible."
Schools, Health and Libraries Broadband Coalition Executive Director John Windhausen said he has never seen the FCC set up a funding program so quickly: It's "a good start and certainly needed." He said $200 million "is not nearly enough to cover the need." SHLB wants another $2 billion for connectivity between healthcare providers and patients, and for healthcare providers to reach other providers.
HR-6474 would allocate $2 billion in additional funding to the FCC’s existing $605 million Healthcare Connect Fund program, increasing subsidies from 65% of broadband costs to 85%. It would expand the program to include rural, urban and suburban healthcare facilities and temporary units established in response to the epidemic, Eshoo’s office said. The measure would streamline some administrative requirements. “The coronavirus has only increased the need for high-quality and reliable internet connectivity as healthcare is increasingly delivered through telehealth and healthcare professionals depend on broadband,” Eshoo said.
The bill's proposed $2 billion appropriation “accurately reflects the demand and the costs of the broadband connectivity needed to address” the epidemic, Windhausen wrote Capitol Hill leaders. SHLB and 47 other groups urged leaders to incorporate HR-6474’s language into the next COVID-19 stimulus bill “because it is critical for our nation’s health care providers.” ACA Connects, the Fiber Broadband Association and USTelecom backed the bill.
The application window for the COVID-19 telehealth program opens Monday at noon EDT, the FCC said Friday. It lists contact information and a URL.
The FCC plans to evaluate applications on a rolling basis and grant awards until the funds run out or the COVID-19 emergency ends. Whether the funds outlast the public health emergency depends on how quickly the FCC can process applications, Windhausen said, and how quickly healthcare providers can spend the money. The FCC didn't comment Friday.
Mintz's Angela Kung was surprised the FCC didn't seek comments on the program, though she understands "time is of the essence" in getting funds out. Parties would have wanted to comment on participation eligibility, Kung said. The College of Healthcare Information Management Executives would like the program to be expanded to for-profit healthcare providers, said Vice President-Public Policy Mari Savickis.
Morgan Lewis has heard many questions on the program from telecom clients, said Tamar Finn, advising ISPs to contact healthcare customers to ensure they're aware of the new fund. Unlike the $100 million Connected Care pilot to follow, this program doesn't require competitive bidding.