Alaska Communications & Rural Health Care Clinics Benefit from Increased Rural Health Care Program Funding & Approved 2017 Co...
July 18 2018 - 8:55AM
Business Wire
Uncertainty for Alaska’s rural health care and
telecommunications providers has been reduced after the Federal
Communications Commission (FCC) increased its Rural Health Care
(RHC) program budget from $400 million to $571 million and approved
funding of Alaska Communications’ (NASDAQ: ALSK) contracts for
funding year (FY) 2017.
In a June 25 announcement, the FCC increased the annual cap on
program spending by nearly 43 percent, to $571 million, which
reversed across-the-board spending cuts for the current funding
year imposed under the old cap. The “pro-rata” cuts had created
uncertainty and turmoil in the program for patients, health care
providers and communications companies.
The program’s previous $400 million cap was set in 1997 and
never indexed for inflation. The $171 million increase represents
what the funding level would be today had the initial cap included
an inflation adjustment.
Prospectively, the FCC will adjust the cap annually for
inflation and allow funds unused from prior years to be carried
forward.
In addition, the FCC approved Alaska Communications’ rural
health care contracts for funding year 2017, which started July 1,
2017. The company previously announced during its first quarter
2018 earnings call that it had an accounts receivable balance for
rural health care customers, net of amounts reserved, of $11.8
million at March 31, 2018. Alaska Communications’ approved funding
year 2017 contracts have now been transmitted to the Universal
Service Administrative Company for processing and payment.
“We are pleased that the FCC has approved our funding year 2017
contracts, increased the program budget and will adjust it annually
for inflation. The FCC’s recent decisions create more certainty for
both our rural health care customers and our company. We appreciate
the FCC working with us and its commitment to the Rural Health Care
program. We look forward to working with the FCC on the longer term
RHC program changes,” said Alaska Communications Senior Vice
President Legal, Regulatory and Government Affairs Leonard
Steinberg.
Technology and telemedicine have assumed an increasingly
important role in health care delivery, particularly in rural and
remote areas of Alaska and the country. Broadband plays a critical
role in the delivery of telemedicine, giving patients in rural
areas high-quality health care services. The Rural Health Care
program provides funding to eligible health care providers for
telecommunications and broadband services necessary for the
provision of health care.
About Alaska Communications
Alaska Communications (NASDAQ: ALSK) is the leading provider of
advanced broadband and managed IT services for businesses and
consumers in Alaska. The company operates a highly reliable,
advanced statewide data network with the latest technology and the
most diverse undersea fiber optic system connecting Alaska to the
contiguous U.S. For more information, visit
www.alaskacommunications.com or www.alsk.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180718005210/en/
Alaska CommunicationsMedia ContactHeather Cavanaugh,
907-564-7722Director, External Affairs and Corporate
CommunicationsorInvestor ContactTiffany Smith,
907-564-7556Manager, Board and Investor
Relationsinvestors@acsalaska.com
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