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FCC OKs 4-0 COVID-19 Telehealth Round 2 Rules

Commissioners OK'd rules 4-0 for round two of the COVID-19 telehealth program, the FCC announced Tuesday. They denied an American Hospital Association petition for reconsideration to include for-profit hospitals as eligible providers. Nearly $250 million will be awarded during the…

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second round. The commission created an application filing window rather than a rolling basis for accepting applications because "smaller providers with more limited resources may have faced difficulties quickly compiling their applications." The filing window is expected to open within 30 days. The FCC will announce this start date "very shortly," said acting Chairwoman Jessica Rosenworcel. Round one applicants that didn't receive funding must submit a new application for round two and "will receive an increase in points in Round 2 which are not available to other Round 2 applicants," the order said. Universal Service Administrative Co. will administer funds again, prioritizing applications from the hardest-hit and low-income areas, unfunded round one applicants, tribal communities, critical access hospitals, federally qualified health centers, healthcare provider shortage areas, new round two applicants and rural counties. Commissioner Geoffrey Starks said the rules give "significant weight to applications proposing to serve low-income communities" and included some of his proposed edits. Rules "strike the right balance between ensuring a wide and equitable distribution of funding and promoting the widest possible participation of health care providers," said Commissioner Brendan Carr. Commissioner Nathan Simington didn't release a statement. The FCC extended from six to 12 months the time applicants may receive funding, saying "providers will likely continue to rely on telehealth and connected care services as a critical means of addressing the COVID-19 pandemic through at least a good portion of 2022." Funds will be awarded in two phases, as expected (see 2103170047). The first $150 million goes to highest-scoring applicants. After a 10-day period, USAC will re-rank the remaining applicants and disburse the remaining funds. The commission kept in place eligibility requirements for providers from round one, and applicants needing to obtain approved eligibility determination must do so only for the "lead health care provider" listed on the application. If an applicant has multiple sites on their application, they must certify only that all sites listed are eligible. The order said its eligible services list is broad enough to provide "the flexibility needed to respond to rapidly evolving situations" and includes guidance on ineligible services.