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Health Care Providers Support Program



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6.9 Health Care Providers Support Program

6.9.1 General


The purpose of the Health Care Providers Support Program is to enable public and non-profit rural health care providers to have access to telecommunications services necessary for the provision of health care services at rates comparable to those paid for similar services in urban areas. The Health Care Providers Support Program offers eligible public and non-profit health care providers located in rural areas reduced rates for Company intrastate services. Such services must be purchased in accordance with the Rules adopted by the Federal Communications Commission (FCC) in its Universal Service Order 97-157, issued May 8, 1997 and the New York State Public Service Commission in its Order in Cases 94-C-0095 and 28425, issued November 4, 1997. The FCC Rules are codified at 47 Code of Federal Regulation (C.F.R.) 54.601 et. seq., and any amendments made thereto.

6.9.2 Regulations


a. To be eligible for the reduced rates, rural health care providers are required to comply with the terms and conditions set forth in the FCC Rules.


  1. Reduced rates are available only to the extent that they are funded by the federal universal service fund.




  1. Eligible rural health care providers may aggregate demand with other entities to create a consortium. Universal service support shall apply only to the portion of eligible services used by an eligible health care provider.

d. Responsibility of eligible health care providers (cont’d)

1. Rural health care providers and consortia shall participate in a competitive bidding process for all services eligible for reduced rates in accordance with any state and local procurement rules.
2. Rural health care providers and consortia shall submit requests for services to the program Administrator, as designated by the FCC, and follow established procedures.
6 Special Services and Programs (cont’d)

6.9 Health Care Providers Support Program (cont’d)

6.9.2 Regulations (cont’d)




  1. Services requested must be used for purposes related to the provision of health care services or instruction that the health care provider is legally authorized to provide under the law.

4. A health care provider that cannot obtain toll free access to an Internet Service Provider and who is eligible for support for limited toll-free access under the Rules must certify that it lacks toll-free Internet access and that it is an eligible health care provider.


5. Services cannot be sold, resold or transferred in consideration for money or any other thing of value.


  1. Responsibility of the Company

1. The Company shall offer the rates and charges as specified in Section 3, to eligible health care providers to the extent that facilities and services are available and offered in the tariffs.
2. The Company shall offer services to eligible rural health care providers and consortia at prices no higher than the highest urban rate as defined in the FCC Order and Rules.
3. In competitive bidding situations, where specific flexible pricing arrangements are allowed, the Company may offer flexible pricing (to determine the reduced rate) subject to New York State Public Service Commission approval.

6 Special Services and Programs (cont’d)

6.9 Health Care Providers Support Program (cont’d)

6.9.3 Rates and Charges


The following price adjustments will be available to eligible rural health care providers, except subparagraph c., which shall be available to all eligible health care providers, regardless of location;
a. A reduced rate for telecommunications services, using a bandwidth capacity of up to 1.544 Mbps, not to exceed the highest tariffed or publicly available rate charged to a commercial customer for a similar service provided over the same distance in the nearest city in New York State with a population of at least 50,000.
b. An exemption from some mileage charges for any telecommunications services, using a bandwidth capacity of up to 1.544 Mbps, that is necessary for the provision of health care services. The exempted mileage includes the distance between the rural health care provider and the most distant perimeter of the nearest city in New York State with a population of 50,000 or more, less the standard urban distance, which is the maximum average diameter of all cities with population of 50,000 or more in the state.
c. Each eligible health care provider that cannot obtain toll-free access to an Internet service provider is entitled to receive toll charge credits for toll charges imposed for connecting to an Internet service provider as per the FCC Rules. Such toll charge credits are available pursuant to applicable toll tariffs.





7 Special Arrangements

7.1 Special Construction

7.1.1 Basis for Charges


Basis for Charges where the Company furnishes a facility or service for which a rate or charge is not specified in the Company's tariffs, charges will be based on the costs incurred by the Company (including return) and may include:

a. nonrecurring charges;

b. recurring charges;

c. termination liabilities; or

d. combinations of a., b., and c.

7.1.2 Basis for Cost Computation


The costs referred to in 7.1.1 preceding may include one or more of the following items to the extent they are applicable:
a. Costs to install the facilities to be provided including estimated costs for the rearrangements of existing facilities. These costs include:
1. equipment and materials provided or used;

2. engineering, labor, and supervision;

3. transportation; and

4. rights of way and/or any required easements.
b. Cost of maintenance.
c. Depreciation on the estimated cost installed of any facilities provided, based on the anticipated useful service life of the facilities with an appropriate allowance for the estimated net salvage.
d. Administration, taxes, and uncollectible revenue on the basis of reasonable average cost for these items.
e. License preparation, processing, and related fees.
f. Tariff preparation, processing and related fees.
g. Any other identifiable costs related to the facilities provided; or

7 Special Arrangements (cont’d)

7.1 Special Construction (cont’d)
7.1.2 Basis for Cost Computation (cont’d)
h. An amount for return and contingencies.

7.1.3 Termination Liability


To the extent that there is no other requirement for use by the Company, a termination liability may apply for facilities specially constructed at the request of a customer.

a. The period on which the termination liability is based is the estimated service life of the facilities provided.

b. The amount of the maximum termination liability is equal to the estimated amounts (including return) for:

1. Costs to install the facilities to be provided including estimated costs for the rearrangements of existing facilities. These costs include:

a) equipment and materials provided or used;

b) engineering, labor, and supervision;

c) transportation; and

d) rights of way and/or any required easements;

2. License preparation, processing, and related fees;

3. Tariff preparation, processing and related fees;

4. Cost of removal and restoration, where appropriate; and

5. Any other identifiable costs related to the specially constructed or rearranged facilities.
c. The termination liability method for calculating the unpaid balance of a term obligation is obtained by multiplying the sum of the amounts determined as set forth in Section 7.1.3 preceding by a factor related to the unexpired period of liability and the discount rate for return and contingencies. The amount determined in Section 7.1.3 preceding shall be adjusted to reflect the redetermined estimated net salvage, including any reuse of the facilities provided. This amount shall be adjusted to reflect applicable taxes.

7 Special Arrangements (cont’d)
7.2 Non-Routine Installation and/or Maintenance
At the customer's request, installation and/or maintenance may be performed outside the Company's regular business hours, or (in the Company's sole discretion and subject to any conditions it may impose) in hazardous locations. In such cases, charges based on the cost of labor, material, and other costs incurred by or charged to the Company will apply. If installation is started during regular business hours but, at the Customer's request, extends beyond regular business hours into time periods including, but not limited to, weekends, holidays, and/or night hours, additional charges may apply.




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