FCC's telehealth pilot shows how broadband improves rural healthcare
 |
The FCC implemented the rural healthcare pilot in 2006 to supplement the rural healthcare program, an ongoing initiative that gives rural providers financial assistance to defray the high cost of broadband in those areas. Unlike the permanent program, the pilot program is intended to provide one-time funding to cover up to 85 percent of the cost of broadband network construction and deployment.
“In recent years, broadband has become increasingly vital to the effective delivery of healthcare, and it can be uniquely transformative in rural areas, where distance poses a substantial challenge,” according to the report.
The pilot program initially awarded funds to 69 projects, some of which have since been combined, disbanded or disqualified from funding, and continues to support 50 active projects in 38 states and several territories. “Many of the pilot broadband networks have been established and are now delivering the benefits of telemedicine and other telehealth applications to their patients,” the report said.
With individual projects involving a range of providers from fewer than 10 to more than 150, a total of 2,107 providers benefited from $217 million in funding by the end of January. While 65 percent of the providers involved in a pilot program project are categorized as rural, 44 of the projects also involve urban providers, who often serve as hubs of and support for broadband networks.
“Broadband networks often bring patients in rural areas the additional medical expertise, creativity, technical know-how and innovation available in large urban medical centers,” the report read. “The leadership, administrative resources and technical and medical expertise provided by urban healthcare providers also have proved central to the success of many pilot projects.”
While only $217 million of the funds set aside have been processed and the projects are in various stages of completion, some are already demonstrating how broadband healthcare networks can increase access to healthcare while reducing costs. For instance, the Palmetto State Providers Network in North Carolina now makes psychiatric consults available 24 hours per day via telehealth network and has saved $18 million in Medicaid costs over 18 months. Similarly, the Heartland Unified Broadband Network in South Dakota has saved connected hospitals an estimated $1.2 million in transfer expenses over 30 months.
Rural healthcare providers operating on shoestring budgets face funding challenges for broadband projects, but initiatives like the FCC’s rural health programs and support from private donors, as well as bulk-buying broadband services coupled with competitive bidding, can help them get connected to improve care for rural patients at a lower cost.
For more information, visit the FCC’s pilot program website or read the report.