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

Client Alert
September 9, 2020

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.

The Federal Communications Commission (“FCC”)FCCRural Health Care Programbroadband servicestelecommunicationstelehealthtelemedicinerural healthcare providersprovidersFCC Funding
Client Alert

Supreme Court Clears Path for TPS Terminations: What Employers Need to Know

June 25, 2026The U.S. Supreme Court's June 25, 2026 decision in Mullin v. Doe and Trump v. Miot removed legal obstacles that had delayed the termination of Temporary Protected Status (TPS) for Haiti and Syria. The ruling also reinforces the administration's authority to terminate other TPS designations currently under review. Employers should immediately identify workers whose employment authorization is tied to affected TPS programs, review Form I-9 records, and prepare for forthcoming USCIS guidance before taking any employment action.Client Alert

The Risks of Outsourcing Medical Billing and the Importance of State-Law Compliance

June 24, 2026Offshoring medical billing and other administrative functions can reduce costs, but it also raises significant compliance, operational, and contractual risks. Although HIPAA does not explicitly prohibit protected health information from being accessed or stored outside the United States, healthcare providers and their vendors remain responsible for safeguarding patient information and complying with state-specific restrictions that may limit or prohibit offshore subcontracting.Client Alert

Risks of Using AI-Generated, Implied Celebrity Endorsements in Advertising

June 3, 2026Businesses using AI-generated celebrity images, videos, or voice simulations in advertising may face significant legal risks if the content falsely implies an endorsement, affiliation, or sponsorship. This article discusses potential exposure under false advertising, right of publicity, consumer protection, and professional conduct laws, and explains why disclaimers may not be enough to avoid liability.Client Alert

CMS Requires Providers to Use an Updated Advance Beneficiary Notice (ABN) Form by May 12, 2026

May 22, 2026CMS has released an updated Advance Beneficiary Notice of Noncoverage (ABN), Form CMS-R-131, that all providers and suppliers must begin using by May 12, 2026. The revised form includes clearer language and formatting updates intended to improve patient understanding and compliance.Client Alert

CMS and Ohio Ramp Up Fraud Enforcement in Home Health and Hospice

May 15, 2026CMS and Ohio have launched sweeping new fraud prevention initiatives targeting home health and hospice providers, signaling a period of heightened scrutiny for enrollment, billing, documentation, and EVV compliance. While aimed at combating fraud, these measures also create significant operational and due process risks for compliant agencies, making proactive compliance programs, auditing, and governance more important than ever.
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