Goto Section: 54.632 | 54.634 | Table of Contents
FCC 54.633
Revised as of October 1, 2014
Goto Year:2013 |
2015
§ 54.633 Health care provider contribution.
(a) Health care provider contribution. All health care providers
receiving support under the Healthcare Connect Fund shall receive a 65
percent discount on the cost of eligible expenses and shall be required
to contribute 35 percent of the total cost of all eligible expenses.
(b) Limits on eligible sources of health care provider contribution.
Only funds from eligible sources may be applied toward the health care
provider's required contribution.
(1) Eligible sources include the applicant or eligible health care
provider participants; state grants, funding, or appropriations;
federal funding, grants, loans, or appropriations except for other
federal universal service funding; Tribal government funding; and other
grant funding, including private grants.
(2) Ineligible sources include (but are not limited to) in-kind or
implied contributions from health care providers; direct payments from
vendors or other service providers, including contractors and
consultants to such entities; and for-profit entities.
(c) Disclosure of health care provider contribution source. Prior to
receiving support, applicants are required to identify with specificity
their sources of funding for their contribution of eligible expenses.
(d) Future revenues from excess capacity as source of health care
provider contribution. A consortium applicant that receives support for
participant-owned network facilities under § 54.636 may use future
revenues from excess capacity as a source for the required health care
provider contribution, subject to the following limitations.
(1) The consortium's selection criteria and evaluation for
"cost-effectiveness" pursuant to § 54.642 cannot provide a preference
to bidders that offer to construct excess capacity.
(2) The applicant must pay the full amount of the additional costs for
excess capacity facilities that will not be part of the supported
health care network.
(3) The additional cost of constructing excess capacity facilities may
not count toward a health care provider's required contribution.
(4) The inclusion of excess capacity facilities cannot increase the
funded cost of the dedicated health care network in any way.
(5) An eligible health care provider (typically the consortium,
although it may be an individual health care provider participating in
the consortium) must retain ownership of the excess capacity
facilities. It may make the facilities available to third parties only
under an indefeasible right of use (IRU) or lease arrangement. The
lease or IRU between the participant and the third party must be an
arm's length transaction. To ensure that this is an arm's length
transaction, neither the vendor that installs the excess capacity
facilities nor its affiliate is eligible to enter into an IRU or lease
with the participant.
(6) Any amount prepaid for use of the excess capacity facilities (IRU
or lease) must be placed in an escrow account. The participant can then
use the escrow account as an eligible source of funds for the
participant's 35 percent contribution to the project.
(7) All revenues from use of the excess capacity facilities by the
third party must be used for the health care provider contribution or
for sustainability of the health care network supported by the
Healthcare Connect Fund. Network costs that may be funded with any
additional revenues that remain include administration, equipment,
software, legal fees, or other costs not covered by the Healthcare
Connect Fund, as long as they are relevant to sustaining the network.
[ 78 FR 13985 , Mar. 1, 2013]
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Goto Section: 54.632 | 54.634
Goto Year: 2013 |
2015
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