In a Report and Order released March 30, 2021, the Federal Communications Commission (“FCC”) announced its plan to move forward with the second round of funding (“Round 2”) of its COVID-19 Telehealth Program (“Program”). As noted in our prior article, this announcement comes after Congress appropriated additional funding and directed the FCC to seek public comment following the first round of funding (“Round 1”). The most significant changes to the Program, and the focus of this article, relate to the application and administration processes. Although Round 2 applications are not open yet, the FCC’s Report and Order provides guidance and clarity as applicants prepare for the next phase of the Program.
Background
Round 1 of the Program was announced on April 2, 2020 and funded by a $200 million appropriation in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Program provided eligible health care providers with 100% of the costs, up to $1 million per applicant, of the telecommunications, information services and connected devices (i.e., remote monitoring devices, such as pulse-ox, BP monitoring device, but only if they were connected) necessary to provide remote telehealth services. The demand of the Program far exceeded the initial CARES Act funding and by July 8, 2020, the Program’s initial funds were already exhausted.
Round 1 of the Program expanded access to telehealth services across the United States. Congress responded to this success by appropriating nearly $250 million of additional funding for Round 2 as part of the 2021 Consolidated Appropriations Act (the “Act”). The Act also directed the FCC to increase the transparency of the Program, ensure equitable distribution of Round 2 funds and seek public comment on improvements to Program’s application process with those goals in mind.
Round 2 Administration and Distribution of Funds
The following summary includes key changes for Round 2 as outlined in the FCC’s Report and Order:
- Application Filing Window
- The FCC will establish a timeframe to review and compare all applications based on pre-defined evaluation metrics (discussed below) before selecting awardees. By way of comparison, Round 1 applications were reviewed and awarded on a rolling basis until all available funding had been committed.
- The revised filing window process also provides applicants status updates and rationale for funding decisions and allows applicants to provide supplementary information if they receive notice of an intent to deny funding as directed by Congress in the Act.
- Application Process and Eligibility
- Round 1 applicants that did not receive funding may update their applications and resubmit an application for Round 2. The FCC noted that Round 1 applicants that were not awarded funding will receive preference (via points as discussed below) in Round 2 applications.
- Round 1 awardees are eligible to apply for Round 2 of the Program, subject to the $1 million cap in total funding between both rounds.
- The FCC will not change eligibility rules for health care provider applicants, and any Round 2 applicant without an approved eligibility determination will be required to submit a FCC Form 460. Notably, the FCC decided to modify the process for applicants requesting funding for multiple eligible health care provider sites by only requiring the lead health care provider listed on the application to obtain an approved eligibility determination (through an FCC Form 460).
- Application Evaluation Process
- The FCC created metrics and a scoring mechanism to evaluate Round 2 applications. Eligible health care providers that can demonstrate the following evaluation metrics are prioritized in the point system: (1) hardest-hit area; (2) low-income area; (3) Round 1 unfunded applicant; (3) tribal community; (4) Critical Access Hospital; (5) Federally Qualified Health Center (or Look-Alike) or a Disproportionate Share Hospital; (6) Health Provider Shortage Area; (7) new Round 2 applicant; and (8) rural county.
- The FCC will also ensure that at least one applicant in each of the 50 states and the District of Columbia will receive funding as directed by Congress in the Act.
- Funding Commitment Process
- Funding for Round 2 will be awarded in two phases. The initial commitment phase will include at least $150 million awarded to the highest-scoring applicants. Then, it will provide a 10-day period to allow applicants to supplement their application before re-calculating the scores for the remaining applicants.
Practical Takeaways
- Additional funds will be available in the FCC’s COVID-19 Telehealth Program for Round 1 awardees, Round 1 unfunded-applicants and new Round 2 applicants based on pre-determined scoring criteria.
- The timing for submission of applications has yet to be announced, but applications will be evaluated during a filling window rather than on a rolling basis.
- There are minimal changes to eligible equipment and services from Round 1 to Round 2 of the Program.
For more information on the COVID-19 Telehealth Program, the eligibility of certain equipment or services, or for assistance in submitting applications, invoices or Post-Program Reports, please contact:
- Michael Batt at (317) 977-1417 or mbatt@wp.hallrender.com.
- Emily Beukema at (248) 457-7882 or ebeukema@wp.hallrender.com; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
