Healthcare Connect Fund 
 
 
 
On December 12, 2012 the FCC created the Healthcare Connect Fund (HCCF) to 
expand access by health care providers to robust broadband networks.  Building on 
lessons learned from 50 Pilot projects testing how to most effectively use broadband to 
improve the quality and reduce costs of health care in rural areas, the HCCF reforms 
modernize the FCC’s existing universal service Rural Health Care Program to expand 
the benefits of telemedicine nationwide. 
 
Goals of Healthcare Connect Fund 
• Increase access to broadband for eligible health care providers (HCPs), 
especially those serving rural areas 
• Foster development and deployment of broadband health care networks 
• Maximize cost-effectiveness of the FCC’s universal service health care program 
 
Health Care Benefits for Consumers 
• Access by rural HCPs to medical specialists at larger HCPs through telemedicine 
• Enhanced exchange of electronic health records and coordination of patient care 
• Remote training of medical personnel 
• Improved quality and lower cost of health care 
 
Key Features of New Healthcare Connect Fund 
• Supports broadband connectivity and broadband networks for HCPs 
• Encourages use of consortium to save costs, expand access to health care resources 
• Provides 65% discount on broadband services, equipment, connections to research 
and education networks, HCP-constructed and owned facilities if shown to be the 
most cost-effective option 
• Requires a 35% HCP contribution 
• Funding began January 1, 2014 (July 1, 2013, for existing Pilot projects) 
 
Who is eligible to participate? 
• Public or not-for-profit hospitals, rural health clinics, community health centers, 
health centers serving migrants, community mental health centers, local health 
departments or agencies, post-secondary educational institutions/teaching 
hospitals/medical schools, or consortia of the above 
• Non-rural HCPs may participate in Healthcare Connect Fund if they belong to a 
consortium that has a majority of rural HCPs, however, only those non-rural 
HCPs that fit into one of the eligible categories listed above can receive support 
from the HCFF.  Other non-rural HCPs may participate in HCFF-consortia and 
benefit from consortia rates that offered by service providers or equipment 
vendors, but such HCPs are not eligible for HCFF support.  
• The largest HCPs (400 + patient beds) are eligible, but support is capped if non-rural. 
 
Funding Caps 
• Cap on total funding for FCC Rural Health Care Programs, including Healthcare 
Connect Fund, is $400 million annually. 
• Cap for upfront payments in Healthcare Connect Fund is $150 million annually. 
 
Links 
• Healthcare Connect Fund order: Uwww.fcc.gov/document/fcc-releases-
healthcare-U Uconnect-orderU 
• FCC website, Uwww.fcc.gov/healthU 
• Universal Service Administrative Co. (USAC) website, Uwww.usac.org/rhcU 
• FCC RHC Pilot Program Map, Uhttp://www.fcc.gov/maps/rural-health-care-pilot-
U UprogramU 
• FCC RHC Pilot Program – Selected Participants, 
Uhttp://www.usac.org/rhcp/about/participants.aspxU 
 
For More Information 
Contact USAC at 1-800-453-1546 or at Urhc-assist@usac.orgU. 
 
February 2015