Media Contact: 
Katie Gorscak, (202) 418-2156
Katie.Gorscak@fcc.gov
For Immediate Release
FCC TAKES STEPS TO FURTHER PROMOTE TELEHEALTH IN 
RURAL AMERICA 
 Seeks Comments and Proposals on Reforms, Addresses FY 2017 Funding 
WASHINGTON, December 14, 2017 – The Federal Communications Commission today 
launched a review of its Rural Health Care (RHC) Program to ensure that all communities have 
access to advanced telehealth services.
The item adopted by the FCC today seeks comment on the appropriate level of the RHC 
Program funding cap.  It also explores ways to more efficiently distribute RHC Program funds 
and combat waste, fraud and abuse.  In addition, the approved Order waives the RHC 
Program’s annual cap on a one-time basis for funding year (FY) 2017 to address the impact of 
the funding cap on RHC Program participants. 
For Americans living in rural and isolated areas, doctor shortages and hospital closures are 
endemic, and obtaining access to high-quality healthcare remains a constant challenge. 
Broadband connectivity has the potential to address such barriers to care by delivering 
telehealth services and access to cutting-edge healthcare treatments. 
In the Telecommunications Act of 1996, Congress recognized the value of providing rural 
healthcare providers with an affordable rate for the communications services necessary for 
telehealth.  Based on this legislative mandate, the FCC established the two components of the 
RHC Program—the Telecommunications Program and the Healthcare Connect Fund (HCF) 
Program—and capped the size of the overall Program at $400 million per funding year. 
The RHC Program has long supported access to vital telehealth services and helps rural 
communities overcome obstacles to accessing healthcare.  For the second funding year in a 
row, demand is likely to exceed available RHC Program support, leaving participating 
healthcare providers facing cuts in funding.  
The adopted Order makes some immediate changes for FY 2017:
? Waives the RHC Program’s annual cap on a one-time basis by instructing the 
Universal Service Administrative Company (USAC) to carry forward any unused RHC 
Program funds from prior funding years for use in FY 2017, which runs from July 1, 
2017 to June 30, 2018.  
? Enables service providers to voluntarily reduce their rates for qualifying FY 2017 
requests while keeping the support amount provided by the Universal Service Fund 
constant.
To address sustainability of the Program and review Program rules, the Notice of Proposed 
Rulemaking seeks comment on:
? Increasing the RHC Program’s $400 million annual cap and creating a prioritization 
mechanism in the event of demand exceeding the cap.
? Establishing a process for evaluating outlier funding requests and reforming the 
calculation of urban and rural rates in the Telecom Program to improve fairness and 
transparency. 
? Defining the “cost-effectiveness” standard across the RHC Program to encourage more 
efficient purchasing and fairer competitive bidding.
? Ensuring sufficient funding for rural and Tribal healthcare providers, while 
maintaining the participation of rural-urban provider consortia.
? Simplifying Program participation and enhancing oversight. 
Action by the Commission December 14, 2017 by Notice of Proposed Rulemaking and Order 
(FCC 17-164). Chairman Pai, Commissioners Clyburn, O’Rielly, Carr and Rosenworcel 
approving and issuing separate statements.
WC Docket No. 17-310
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www.fcc.gov/office-media-relations
This is an unofficial announcement of Commission action.  Release of the full text of a Commission order constitutes 
official action.  See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).