Federal hospitals can access financial assistance from government resources
In recent times, there has been a growing recognition of the need for more support for independent hospitals in rural areas to avoid exacerbating unequal access to healthcare services. This article explores various federal funding opportunities and legislative developments that could aid these hospitals in improving broadband connectivity and expanding virtual care services.
One such opportunity comes from the Federal Communications Commission (FCC) with programs designed to support broadband deployment, including for healthcare services. The FCC's emphasis on expanding broadband to enhance healthcare access, particularly in response to COVID-19, is a significant step towards bridging the digital divide in rural communities.
Another significant development is the Infrastructure Investment and Jobs Act (IIJA) of 2021. This act includes substantial funding for broadband programs through the Broadband Equity, Access, and Deployment (BEAD) program, aiming to improve internet access across the U.S. by 2030. While not specifically focused on healthcare, improved broadband infrastructure can facilitate virtual care services.
Part of the Treasury Department’s COVID-19 recovery efforts, the Capital Projects Fund has supported projects that enhance access to critical services like healthcare through better broadband connectivity.
Recent legislation also includes a two-year extension of Medicare telehealth services, ensuring continued access to virtual care. While not directly a funding opportunity, it supports the expansion of telehealth services by providing regulatory certainty.
The new reconciliation law includes a $50 billion Rural Health Fund, which focuses more on supporting rural healthcare infrastructure rather than directly improving broadband connectivity. However, this funding could indirectly support hospitals by enhancing healthcare access and services in rural areas.
However, independent hospitals may face challenges in leveraging these opportunities due to issues like unreliable connectivity and lower digital literacy among communities with more aging members. Additionally, recent legislative changes have reduced Medicaid funding and tightened rules on how states use hospital fees to draw federal funds, which could impact hospitals' ability to invest in broadband and virtual care unless they can leverage alternative funding sources.
Despite these challenges, independent hospitals serving rural communities can tap into these federal support programs by considering investments in networking, cybersecurity, and virtual care services. Virtual care services can be a major competitive advantage for traditional providers and can ultimately support overburdened staff.
This article is part of HealthTech's MonITor blog series, providing insights into the latest developments in healthcare technology. As we move forward, more opportunities in the future for security-focused healthcare funding may exist.
Please note that as of May 11, 2023, the federal public health emergency has expired. The World Health Organization has declared that the spread of COVID-19 is no longer a global health crisis.
[1] Source: https://www.beckershospitalreview.com/policy-regulation/rural-health-fund-included-in-build-back-better-act.html [2] Source: https://www.beckershospitalreview.com/telehealth/telehealth-extension-passes-house-senate-and-heads-to-presidents-desk.html [3] Source: https://www.beckershospitalreview.com/accounts-receivable/medicaid-funding-changes-could-impact-hospitals-ability-to-invest-in-broadband-and-virtual-care.html [4] Source: https://www.beckershospitalreview.com/telehealth/treasury-department-announces-covid-19-capital-projects-fund-grants.html [5] Source: https://www.beckershospitalreview.com/policy-regulation/rural-health-fund-included-in-build-back-better-act.html
The Federal Communications Commission's programs, designed to support broadband deployment for healthcare services, and the Infrastructure Investment and Jobs Act's funding for broadband programs can potentially improve medical-conditions diagnoses and treatments in rural hospitals, as they encourage better health-and-wellness care delivery. Meanwhile, the Treasury Department’s Capital Projects Fund, aimed at enhancing access to critical services such as healthcare, can indirectly contribute to financial stability in these hospitals through better broadband connectivity.
