When a patient in Lawton wants to see a specialist in Oklahoma City, it usually requires the patient to get in a car and drive for more than an hour on I-44. But with telemedicine, all of that changes. Patients can use video conferencing to see specialists and doctors without having to travel, and hospitals and clinics can electronically send and share medical records and x-rays between facilities. The state of Oklahoma has a program that helps hospitals and clinics pay for this service called the Oklahoma Universal Service Fund (OUSF). OUSF provides funding for public schools, public libraries and eligible healthcare entities to have access to high speed internet connectivity which allows hospitals and clinics to use telemedicine.
Under the program, hospitals and clinics contract with service providers for access to high speed internet. These service providers then deliver services to the hospitals and clinics and seek reimbursement for the cost from OUSF. The Oklahoma Corporation Commission is in charge of the OUSF program, and has established a number of rules and regulations which outline the eligibility requirements for hospitals, clinics and service providers. For example, service providers are required to file an application for OUSF funding in a timely fashion. Hospitals and clinics are also required to apply for federal funding to help reduce the amount of funding they receive from the state. Along with the commission’s rules, the Oklahoma Legislature recently passed changes to the OUSF program that impact how applications for funding are reviewed and when they are due.
Any hospital or clinic eligible for OUSF funding should make sure the contracts they enter into with service providers include language addressing the new changes to the OUSF rules. A carefully drafted contract between healthcare entities and service providers will protect hospitals and clinics by requiring that their applications with the commission are submitted timely by service providers and are in compliance with all of the rules. In addition, hospitals and clinics should start the application process for federal funding as soon as possible. If an eligible hospital or clinic fails to apply for federal funding, they risk having their OUSF funding reduced.
If you have any questions about the new rules or need assistance negotiating contracts with service providers, applying for federal funding or appealing state and federal funding decisions, please contact Anthony Hendricks or any member of Crowe Dunlevy’s Administrative & Regulatory Practice Group.