Sec.  54.601   Eligibility.

   (a) Health care providers. (1) Except with regard to those services provided
   under  Sec. 54.621(b), only an entity that is either a public or non-profit rural
   health care provider, as defined in this section, shall be eligible to
   receive supported services under this subpart.

   (2) For purposes of this subpart, a “health care provider” is any:

   (i) Post-secondary educational institution offering health care instruction,
   including a teaching hospital or medical school;

   (ii) Community health center or health center providing health care to
   migrants;

   (iii) Local health department or agency;

   (iv) Community mental health center;

   (v) Not-for-profit hospital;

   (vi) Rural health clinic; or

   (vii) Consortium of health care providers consisting of one or more entities
   described in paragraphs (a)(2)(i) through (a)(2)(vi) of this section.

   (3) For purposes of this subpart, a rural health care provider is a public
   or non-profit health care provider located in a rural area, as defined in
   this subpart.

   (i) Any health care provider that was located in a rural area under the
   definition  used by the Commission prior to July 1, 2005, and that had
   received  a funding commitment from USAC since 1998, shall continue to
   qualify for support under the universal service mechanism for health care
   providers for a period of three years, beginning July 1, 2005.

   (ii) [Reserved]

   (4)  Each separate site or location of a health care provider shall be
   considered an individual health care provider for purposes of calculating
   and limiting support under this subpart.

   (b) Consortia. (1) An eligible health care provider may join a consortium
   with other eligible health care providers; with schools, libraries, and
   library  consortia  eligible  under  Subpart F; and with public sector
   (governmental) entities to order telecommunications services. With one
   exception, eligible health care providers participating in consortia with
   ineligible  private sector members shall not be eligible for supported
   services under this subpart. A consortium may include ineligible private
   sector entities if such consortium is only receiving services at tariffed
   rates or at market rates from those providers who do not file tariffs.

   (2) For consortia, universal service support under this subpart shall apply
   only to the portion of eligible services used by an eligible health care
   provider.

   (c) Services. (1) Any telecommunications service that is the subject of a
   properly completed bona fide request by a rural health care provider shall
   be  eligible for universal service support, subject to the limitations
   described in this paragraph. The length of a supported telecommunications
   service may not exceed the distance between the health care provider and the
   point farthest from that provider on the jurisdictional boundary of the
   largest city in a state as defined in  Sec. 54.625(a).

   (2)  Internet access and limited toll-free access to internet. (i) For
   purposes of this subpart, eligible Internet access is an information service
   that enables rural health care providers to post their own data, interact
   with stored data, generate new data, or communicate over the World Wide Web.

   (ii) Internet access shall be eligible for universal service support under
    Sec. 54.621(a).

   (iii) Limited toll-free access to an Internet service provider shall be
   eligible for universal service support under  Sec. 54.621(b).

   (3) Advanced telecommunications and information services as provided under
    Sec. 54.621.

   (d) Allocation of discounts. An eligible health care provider that engages
   in eligible and ineligible activities or that collocates with an entity that
   provides  ineligible  services  shall allocate eligible and ineligible
   activities in order to receive a prorated discount for eligible activities.
   Health care providers shall choose a method of cost allocation that is based
   on objective criteria and reasonably reflects the eligible usage of the
   facilities.

   [ 62 FR 32948 , June 17, 1997, as amended at  64 FR 66787 , Nov. 30, 1999;  68 FR 74502 , Dec. 24, 2003;  70 FR 6372 , Feb. 7, 2005]