The American Hospital Association is asking the Federal Communications Commission to raise a spending cap on government funds used to provide telemedicine services to rural areas, saying demand has outstripped available resources.

The FCC is currently reviewing whether the current $400 million annual spending cap on the Rural Health Care Program is sufficient to meet current needs or if more efficiencies can be found in the program to lower costs. The RHC Program provides funds for telemedicine services in rural areas.

In a letter to the commission, AHA noted that 25 percent of the U.S. population lives in rural areas but only 10 percent of doctors practice in the those same regions. The program is essential to providing broadband internet access to rural areas, but the current spending cap "is insufficient to meet the costs associated with delivering high-capacity broadband-enabled telehealth services." AHA noted the cap was set 20 years ago.

The association is recommending that the FCC retroactively increase the cap for 2017 to the rate of inflation and then continue raising spending limits in future years. It also is suggesting any unused funds during one year be made available for future years, and that the commission revise the definition of "rural" to be more inclusive.

AHA also is recommending a series of other changes, such as the streamlining of the RHC program to relieve administrative burdens for health care provides.

"By making targeted changes to the RHC Program, the Commission can maximize program participation, further expand broadband connectivity, and ultimately, improve health outcomes for rural Americans," the group said. http://bit.ly/2nOW0Fr

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