By using this site, you agree to the Privacy Policy and Terms of Use.
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

monetize telemedicine
20 Reasons You Need a First Class Internet Plan for 2014
The Future of Medical Transcription
Innovative Ways for Older Americans to be Never too Old to Play
Caremerge Nudges Long-Term Care Coordination Into the Mobile Health Era
Tips to Create Unique Social Media Content for Your Hospital

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

grief affects brain
How Grief Affects The Brain And Body
Infographics Mental Health
June 19, 2026
The Difference Between a Sustainable NP Practice and One That Burns Out in Three Years
The Difference Between a Sustainable NP Practice and One That Burns Out in Three Years
Career Nursing
June 19, 2026
medical facilites
Understanding Navigation Stress In Medical Facilities
Health Infographics
June 19, 2026
appointment ready
Appointment Ready: A Practical Patient Intake Preparation Guide
Hospital Administration Infographics
June 19, 2026

You Might also Like

healthcare tweeting tips
BusinesseHealthSocial Media

Beyond the Buzz: Ten Tips for Healthcare Tweeters

July 4, 2014

New Ways to Engage with Patients

October 30, 2013

Using Telemedicine to Increase Hospital Revenue

July 20, 2013

Interview with Doximity Co-Founder Nate Gross

September 29, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?