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FCC Adds $198 Million to Strengthen Telehealth for Rural Healthcare Providers

Client Alert

The Federal Communications Commission (“FCC”) has added an additional $198 million in funding to its Rural Health Care Program. These funds will be used to increase broadband services and telecommunications to bolster telehealth/telemedicine services for rural healthcare providers. Funding for rural healthcare providers was initially capped at $605 million in 2020, but the added funds will now allow the FCC to provide over $800 million to eligible providers.

Telehealth, in direct response to the COVID-19 public health emergency, has undergone a massive expansion since March. Telehealth encounters are up exponentially as patients look for a safe, socially distant, option to receive health care services and providers try to keep vital hospital space available for COVID-19 care. Technical barriers, such as the lack of a strong broadband infrastructure, has limited the wide adoption of telehealth in rural areas. The FCC aims to combat the technical limitations, as this funding will help improve technology platforms and internet connectivity, so that patients have expanded access to affordable and efficient care. 

Eligible providers for the Rural Health Care Program include:

  1. post-secondary educational institutions offering health care instruction, teaching hospitals, and medical schools;
  2. community health centers or health centers providing health care to migrants;
  3. local health departments or agencies;
  4. community mental health centers;
  5. not-for-profit hospitals;
  6. rural health clinics;
  7. skilled nursing facilities; and
  8. a combination of health care providers consisting of one or more entities falling into the first seven categories.

Please contact your primary BMD Healthcare & Hospital Law Group attorney if you have any questions regarding the Rural Health Care Program, this additional funding and how to apply for the use of funds, or any other general healthcare questions.


Medicare Updates on Skin Substitutes: LCDs Withdrawn, Payment Changes Take Effect

Medicare’s planned Final Local Coverage Determinations (LCDs) for skin substitutes were withdrawn in late December 2025, meaning previous coverage rules remain in effect. The 2026 Medicare Physician Fee Schedule introduces a single payment rate of approximately $127.14 for these products. Providers should review implications for diabetic foot and venous leg ulcer treatments.

Understanding the Seven Core Elements of an Effective Healthcare Compliance Program

The Affordable Care Act requires healthcare providers participating in Medicare, Medicaid, and CHIP to maintain an effective compliance program. Guidance from the Department of Health and Human Services and the Office of Inspector General outlines seven core elements that form the foundation of these programs, from written policies and compliance oversight to auditing, training, and corrective action. This alert highlights each element and explains how practices can tailor compliance programs to their size and risk profile while meeting federal expectations.

Proposed Health Information Privacy Reform Act Expands Protections Beyond HIPAA

The Health Information Privacy Reform Act (HIPRA) seeks to extend privacy protections to health data not covered under HIPAA, including data collected by apps and wearables. HIPRA introduces broader definitions of protected health information, strengthens privacy and security requirements, establishes patient notification rights, and sets national de-identification standards. Companies processing health data should monitor developments to ensure compliance.

Preventing a Board Investigation

Healthcare professionals in Ohio are subject to licensing board investigations that can lead to disciplinary action. Staying compliant with regulations, documenting carefully, and operating within your professional scope can help prevent issues. If contacted by a board, working with an attorney is critical to protect your license and rights.

Ohio Board of Nursing Proposes Rule Changes for Nurses

On Monday, January 12, 2026, the Ohio Board of Nursing (“BON”) released a package of proposed changes to the Ohio Administrative Code. There are two proposed changes to continuing education requirements that Ohio nurses should be watching.