We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: FCC Ponies Up for Telemedicine But Marks Down Subsidy
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > eHealth > FCC Ponies Up for Telemedicine But Marks Down Subsidy
eHealth

FCC Ponies Up for Telemedicine But Marks Down Subsidy

rdowney14
rdowney14
Share
4 Min Read
SHARE

When the FCC finally agreed to start spending the money appropriated for the expansion of broadband, the entire telemedicine industry greeted the news.

When the FCC finally agreed to start spending the money appropriated for the expansion of broadband, the entire telemedicine industry greeted the news.

Now, however, we’re getting to the “small print,” and what we’re seeing are some important aspects that were overlooked in the initial excitement and what they mean.  The FCC effort is called the “Healthcare Connect Fund.” The program will subsidize 65% of broadband costs for participating providers.  Sounds like a good deal, until you consider that the FCC’s existing Rural Healthcare pilot program, established by the 1996 Telecommunications Act, provided an 85% subsidy.  So, in order to get broadband support now, rural providers will have to kick in an additional 20% to get what the pilot program provided.

The government has been pushing physicians towards Meaningful Use.  Doctors were first offered financial incentives to buy electronic medical record systems, but a good number of them haven’t done it because office expenses like digitizing paper records are not covered and they would end up eating the added costs.  So, Medicare will now begin cutting into reimbursements for doctors who have not gone to electronic medical records.  Government “incentives” are making it more difficult for medical practices.  That’s why physicians in urban areas in increasing numbers are selling their practices to hospitals which are creating Accountable Care Organizations.  In effect, the doctors are saying: Let the hospitals deal with the government- I just want to be an employee.  Whether this is the best path for those of us who are patients hasn’t been determined yet.

More Read

The 4 Best Apps for People with Diabetes
A Brilliant Reason to Dive Deep into the Social Media Health Space
USDA Announces Distance Learning & Telemedicine Project Grants
Qualcomm Life Boosts mHealth Ecosystem with $100M Venture Fund
Big Data = Big Savings in Healthcare

Eric Brown is the president and CEO of the California Telehealth Network (CTN).  In an interview with Government Technology, he says the lower FCC subsidy is an “obvious concern” to members of his organization.  CTN works with stakeholders to establish broadband connectivity for communities which are desperate for access to quality healthcare.  Members of CTN pay about $63 a month for a 1.5 Mpbs T1 Internet connection.  Some providers will find it difficult to come up with the additional 35% that the Healthcare Connect Fund requires.  In dollar terms, these providers may have to pay about $200 a month for the same connectivity as the pilot.

Without connectivity, you can’t do telemedicine effectively.  If you pay a lot more for connectivity, you need to make up that added cost somewhere else.  Small rural clinics are already hard-pressed to stay in operation, and the added cost could force them to limit their hours or close.

Of course, the FCC continues to trumpet the Healthcare Connect Fund as “momentous” – that it builds on the successes of the Rural Health Care Program.  Cutting the subsidy, according to FCC Commissioner Mignon Clyburn, will avoid wasteful spending.  This reminds me of the attitude that Medicare officials took around 2001 when Congress approved legislation that allowed reimbursements for physicians who saw patients telemedically.  They saw to it that reimbursements were restricted to medically underserved areas outside metropolitan areas because they were afraid doctors would OVERuse telemedicine. Not only hasn’t that happened, but also if it did, wouldn’t that mean better access to healthcare for patients?

 

 

TAGGED:FCCtelemedicine
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Choosing a Beverly Hills Hyperbaric Center Means Checking Access and Transparency  -- AI-generated illustration
Choosing a Beverly Hills Hyperbaric Center Means Checking Access and Transparency 
Medical Innovations Technology
August 10, 2026
Mental Health Reimbursements Fail Emergency Departments -- AI-generated illustration
Mental Health Reimbursements Fail Emergency Departments
Hospital Administration Mental Health
August 6, 2026
Advances in Diagnostic Tools for Early Detection of Dementia -- AI-generated illustration
Advances in Diagnostic Tools for Early Detection of Dementia
Diagnostics
August 1, 2026
How Virtual Schools Deliver Therapy and Special-Education Support for Children With Disabilities -- AI-generated illustration
How Virtual Schools Deliver Therapy and Special-Education Support for Children With Disabilities
Health News Therapy
July 31, 2026

You Might also Like

Flying “Eye” DC-10 Hospitals Give the Gift of Sight

November 14, 2011

Transitioning To Electronic Health Records: From Financing To Implementation

January 12, 2016

A Healthcare Data Pro’s Innovation Wish List

May 1, 2014

Does Social Media Influence Rx Habits and Choices?

August 31, 2015
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2026 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?