Consulting, Memos

Telehealth Budget Increase: $571 Million Rural Health Care Program Cap

August 21, 2018

On June 19, 2018 the Federal Communications Commission (FCC) adopted procedures to meet the increased demand for funding from the Rural Health Care (RHC) Program. The RHC program promotes health care delivery and telemedicine in rural America.

In the last five years telehealth technology has advanced and became more prevalent in rural areas. The RHC Program caped their funds at $400 Million and in 2017 the RHC Program demand surpassed the funding cap by approximately $121 million.

Addressing the Increased Demand
In an effort to address the increased demand for funding in the RHC Program, the FCC has established three different procedures, which are as follows:

  1. Increase the annual RHC Program funding cap to $571 million and will apply it back to FY 2017
  2. Adjust the RHC Program funding cap annually to reflect inflation, beginning with FY 2018
  3. Establish a process to carry-forward unused funds from past funding years for use in future funding years.

Download the full memo below for details on the increased RHC Program Funding Cap, Annual Inflation Adjustment, Carry-Forward Process, Eligible Entities, and Use of Funds.

VPS Memo: Telehealth Budget Increase